Every stock that I present on my Watch List in Traders Daily Direction has to have real reasons to buy.
I put them through my Surge Stock Indicator (SSI). And they have to prove out to make the cut before I then do more work and analysis on them. And only after more and more work to make my final cut – do they make it for each week’s presentation each and every Monday in Traders Daily Direction.
And the SSI keeps netting market beating returns including last week – when the market was well, not good. My Athene Holdings (ATH) beat the market and is trading up strongly yesterday.
And this week – that’s just underway – my Pool Corporation (POOL) is already out of the blocks up nicely.
And to get my full rundown on my Surge Stock Indicator (SSI), you need to read my special report: The Magic of the Stock Surge Indicator (SSI) that you can download for free right here.
To see this week’s collection of stocks on my Watch List, click here to see them on the Traders Daily Direction website. And as I just noted, we’ve got some stocks that are moving up right now.
All of this takes work and more importantly, discipline.
Because on any given day – I see plenty of stocks that are catching folk’s eyes and attention – even mine. But I have to temper any enthusiasm with my disciplined approach to buying stocks. Otherwise – trouble can and will ensue.
Take for example a tweet that I saw pop up from Mark Minervini:
When it comes to forecasting stock prices, there are two kinds of investors: those who don't know and those who don't know that they don't know.— Mark Minervini (@markminervini) June 18, 2021
Mr. Minervini runs Quantech Research Group and Minervini Private Access that are online newsletter stock picking services. And he has had some investing books published over the years.
I follow Mark and like some of his work. But what has struck me is that he readily admits that no one ever knows what a stock will do next.
And this really resonates with me – as I never will throw a flyer on any stock without my SSI research backing it up – even if it does appear to be a deal.
Case In Point: What Not to Buy
Earlier this week, I came across Encore Wire Corporation (WIRE) in one of my scans.
The stock has everything going for it.
Earnings growth, accelerating sales, strong price action…
The stock was even setting up in a textbook breakout pattern.
Shares were consolidating in a tightening range.
Volume was sinking as it usually does before the surge higher.
I was tempted to buy early – to get in a couple dollars cheaper before the stock broke out.
Luckily, I resisted.
Stock trading requires discipline.
I knew I needed to wait for confirmation.
And it’s a good thing I did.
Suddenly, the stock collapsed.
Shares were down 7% on no apparent news.
It is easy to get romanced by a stock – to believe so strongly in the business or the fundamentals or the story that we convince ourselves it HAS to go up.
But this attitude is detrimental to your success as a trader.
All stocks are bad unless they are going up.
I don’t care if they just developed the cure for cancer.
If the share price is falling, it is not something I want to own.
And you shouldn’t either.