Professional Documents
Culture Documents
Howard Lindzon
Founder and CEO of StockTwits @howardlindzon
Ivaylo Ivanhoff
@ivanhoff
howard@lindzon.com
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Only
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of them have explosive earnings and sales growth; Many had new product/service that was loved by their customers; Many looked expensive on the way up (and paradoxically cheap on the way down)
But
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It doesnt matter how smart you are; how ingenious your investing idea is; Until the market agrees with you, you wont make a cent. Market agrees with you, when you see your stocks on the 52-week high, better yet the all-time high list;
The 52-week high list is a raw data point, which could be enormously useful if you know how to read it properly.
The 52-week high list is basically a short-cut into the minds of people, who can create and sustain trends.
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U.S. Housing Recovery Is the Market Story of the Year and It was Told by the 52-week High List Long Before It became front-page news
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Relative Strength
How
Stocks
That Are Holding Near 52-week highs and Even Better, Break Out to New Highs While the General Market Is In Correction Mode, Are Likely To Become the Leaders of the Next Rally
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In Good Markets, There Will Be Hundreds of Stocks Hitting the 52-week High List Daily. You Cant Own Them All. How to Choose from such Big Pool of Stocks?
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It Saves Research Time By Ranking All Liquid Stocks by the Criteria that Matters:
-Distance
from 52-week high; -Relative Strength; -Earnings and Sales Growth; Acceleration in growth; -Earnings Surprises; -And Most Importantly Setup score (based on Moving averages ratios), which keeps us away from extended stocks.
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Trend Following Is Not for the Faint of Heart and Get Rich Quick Dreamers
Anybody Can Buy A Stock, but You Also Have to Hold It While It Rises In Order to Make Money
And Yet, Conviction Without Discipline Is a Recipe for DisasterYou Have To Stick To Your Sell Rules, No Matter How Much You Believe in the product/service
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Pruning Is Important. You Will Have Losers. Get Rid Off Them
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Everything Is For Sale At the Right Price No Gain Is Really A Gain Until It is Booked
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80/50 Rule
80% of All Big Stock Market Winners Lose 50% of Their Move
50% of All Big Stock Market Winners Love 80% of Their Move
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I can calculate the motion of heavenly bodies, but not the madness of people.
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No company can sustain high growth forever; No company can sustain high expectations forever. Anything priced for perfection eventually disappoints Valuation Matters When Markets Mood Shifts from Complacency and Euphoria to Doom and Gloom
Wall Street is a tireless printing press; sophisticated distribution and marketing machine. It is in the business of printing stocks that are under demand by the market
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Reacts
Look
for Sudden Increase in Short-Term Volatility. It is often a sign of ownership transfer from strong to weak hands
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