Here we will be tracking all of our Stage Analysis short term trades in 2023.
Our sweet spot for a such trades is a term of 9 months, that means if our initial estimation of trade goes wrong but we still have higher conviction in the stock based on technical stage analysis, then we hold the position for at least 9 months, otherwise we cut the loss and move to our next trade.
What is Stage Analysis? Here
We also recommend to book profits in these trades occasionally if they are in profit or raise your stop loss to comfortable price, because momentum can swing to other direction quickly in such trades.
How do we choose our trades?
- Good quality companies in the midst of relative strength in comparison to SPX
- Recently either consolidated, pulled back or broke out.
- Alert based on technical chart analysis and stage analysis.
Following is the sample alert
Position size is indicative. You should size your positions based on the risk taking ability and exposure to short term trades you would like to make.
Criteria to find stocks that are going to Breakout based on Stage Analysis:
- Showing relative strength in comparison to SPX
- Moving averages(20, 50, 200) are coming closer together and consolidating
- Accumulation is above 50 week moving average.
- Stock is entering in Stage 2 of stage analysis.
- Stock is from a trending sector.