Now,basically,the Art/point of Differentation is in how each individual separates a Momentum watchlist into Possibilities and Rejects.
Personally I use my developed prejudices for and against certain sectors/shares but to give some General ideas-
Has it gone up on News released that day?
It could be "better" that it didn't but had just gone up "out of d'Blue".
Such a Rise COULD be caused by "insiders" taking positions but it may be just a Signal for a Run.
Has it gone up a long way over say the last Month?
well,it could be getting "exhausted",avoid.
So by applying these two as "Criteria",one would be "keener" on a share that in one day say did 10%,hadn't had a news announcement to "cause" it and had been a "bit quiet" in the previous month or so.
Do you follow,ironfist?
Do you see how CVI fits as an example,a Single Example of Momentum Trading?
Look at the 6month chart of CVI as example for all the 10%+ Up days and how it reacted price wise in the following days.
By keeping a General Check of any Shares that do that on any particular day,you get a Watchlist of Potentials.
Do the list over a week,you should find some definite Chances to invest in for maybe a month,earn ya mortgage month in month out by small capital positions.
just remember that scores of shares fit this simple criteria every day,it's just a Method not the Holy Grail.
You have to WORK,oh and adopt Stop Loss Definitely!
cheers.
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