https://reddit.com/link/1u1u2sx/video/onc7tarffe6h1/player
Finding good stocks is hard.
Knowing when to buy them is often even harder. So this the framework I generally use:
𝟏. 𝐎𝐧𝐥𝐲 𝐛𝐮𝐲 𝐬𝐭𝐨𝐜𝐤𝐬 𝐢𝐧 𝐚𝐧 𝐮𝐩𝐭𝐫𝐞𝐧𝐝
I want the 20, 50, and 200-day moving averages stacked correctly and sloping higher. In practice, that usually means a pattern of higher highs and higher lows, with price trading above key moving averages.
𝟐. 𝐋𝐨𝐨𝐤 𝐟𝐨𝐫 𝐬𝐮𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐭 𝐯𝐨𝐥𝐚𝐭𝐢𝐥𝐢𝐭𝐲
I prefer stocks with an ADR of at least 3-4%. If a stock barely moves, you need significantly more capital to generate meaningful returns. I'd rather allocate capital to stocks that are actually moving.
𝟑. 𝐋𝐨𝐨𝐤 𝐟𝐨𝐫 𝐭𝐢𝐠𝐡𝐭 𝐩𝐫𝐢𝐜𝐞 𝐚𝐜𝐭𝐢𝐨𝐧
I pay close attention to price contraction. Tight consolidations often signal that weaker holders have been shaken out. Combined with a strong underlying trend, they can create attractive setups for continuation.
𝟒. 𝐅𝐨𝐜𝐮𝐬 𝐨𝐧 𝐥𝐞𝐚𝐝𝐢𝐧𝐠 𝐬𝐭𝐨𝐜𝐤𝐬 𝐢𝐧 𝐥𝐞𝐚𝐝𝐢𝐧𝐠 𝐠𝐫𝐨𝐮𝐩𝐬
Markets move in cycles. At one point semiconductors may lead, then aerospace, software, or energy. I try to focus my attention on the strongest stocks within the strongest industries and sectors.
𝟓. 𝐃𝐨𝐧'𝐭 𝐢𝐠𝐧𝐨𝐫𝐞 𝐟𝐮𝐧𝐝𝐚𝐦𝐞𝐧𝐭𝐚𝐥𝐬
I like companies with strong and accelerating revenue and earnings growth. Positive cash flow is a bonus. Strong fundamentals give me more conviction and make it easier to sit through drawdowns without second guessing. You can do your due diligence your own way, I'm just sharing mine in the video.
There are countless ways to make money in the markets, and this is just one approach. It's not the only way, but it's served me well over the years. It might seem simple, but it took a lot of trial and error to cement these rules in my brain. Hope this helps!