Hi Happy, Sunday sounds like fun. A few quotes from an incredibly wise man...
had you chosen those stocks that were close to or hitting new 52 week highs, you will likely hit your target much quicker.
trading view also has a screener for those 52 week highs. AVGO is on it
it should be a starting point but if it was all that you did i'd argue it would be better than the strong buys list
how strong is the market right now? which should dictate your level of risk
For the S&P500 only 23 stocks are hitting new highs. 51 are hitting new 52 week lows. just 23 out of 500, and twice as many lows than highs. The market is very weak. another wise man said...
if the broad market is doing poorly, when there is a bad day/week. everything suffers
you could limit those stocks from the 23 to only those that had closed above their last pivot, so being really choosy..
you could limit or reduce the number you choose, or even the risk taken for each
or of course sit it out
another metric, how many winners to losers have you had right now...is that an indication of your strategy or the market?
if the market was really hot right now, do you think it would matter whether you were looking at 52 week highs or simply throwing a dart at the list of 500..that was rhetorical. your entry criteria helps you limit those losses, but
if you are doing what the market is doing, when its doing it. good things happen. doesnt matter if you used a moving average cross over, or you thought you were the second coming
I did a very simple backtest for the last 22 years whereby when the market is in an uptrend (simply by using a positive momentum) and choosing the top 10 stocks ranked by the same momentum score from the FTSE100 you can significantly outperform the market
Imagine your results if instead of looking for stocks when the market was really weak, you timed the market when the S&P was also hitting new 52 week highs. The back test was simple. when the S&P was positive, choose the most positive stock. let that stock go and do what its got to do.
when its not hitting new 52 week highs, but pulling back...you have just 4% of the market to choose from.
one last thing now from me...if i were you, i would be looking at weekly charts minimum, so your next list should be chosen after the close on friday and ready for monday. that will for one limit your losses in a weak market and also cut out all the noise from daily charts
enough from me now..just think on what i've said and honestly wish you the best.
I'll follow this thread with interest, if you have any questions, just message me