Picking stocks to trade

[Rev7]

Hi,

I'm reading Come Into My Trading Room by Elder and he mentions picking no more than 24 stocks so you are able to track them day in day out. He suggests picking two or three currently hot industries and selecting 6 stocks in each of those industries. 'Thats where you'll find the highest volumes, the steadiest trends, and the crispest reversals.'

I'd be grateful if somebody could point me in the right direction with regards to which industries are hot and somewhere I can compare the volumes. I'm based in the UK if that makes any difference.

Many Thanks

 

[dbphoenix]

Hi,

I'm reading Come Into My Trading Room by Elder and he mentions picking no more than 24 stocks so you are able to track them day in day out. He suggests picking two or three currently hot industries and selecting 6 stocks in each of those industries. 'Thats where you'll find the highest volumes, the steadiest trends, and the crispest reversals.'

I'd be grateful if somebody could point me in the right direction with regards to which industries are hot and somewhere I can compare the volumes. I'm based in the UK if that makes any difference.

Many Thanks

Depends on how much action you want and whether you prefer the "buy new highs" approach or bottom-fishing. Bottom-fishing requires far more patience, but you may not want to monitor your commitments on a continuous basis.

In any case, I suggest you look at the sector comparisons at StockCharts:

As you can see, Energy is and has been bouncing along the bottom. Utilities and Real Estate occupy the top levels. If you particularly want to buy stocks, you can flip through the stocks within each sector. However, this will entail flipping through hundreds - or thousands - of stock charts. You can reduce this number somewhat with filters, but you can also simply buy the sector as an ETF, e.g., XLE for energy. As always, it pays to know exactly what you're looking for in order to increase your chances of finding it.

Db

 

[fibo_trader]

Hi,

I'm reading Come Into My Trading Room by Elder and he mentions picking no more than 24 stocks so you are able to track them day in day out. He suggests picking two or three currently hot industries and selecting 6 stocks in each of those industries. 'Thats where you'll find the highest volumes, the steadiest trends, and the crispest reversals.'

I'd be grateful if somebody could point me in the right direction with regards to which industries are hot and somewhere I can compare the volumes. I'm based in the UK if that makes any difference.

Many Thanks

Crowd thinking, everyone going after the same stuff. the correct answer is most likely the opposite. go where nobody is looking

If your London FTSE trend is up, track the biggest losers. Why? Because they are only losers in the eyes of the idiots - they are actually generally winners that are just going thru' the normal business of correcting in an uptrend. These are intermediate level corrections you will find in the zone of 50%. These are the ones to buy and ride them over the top to 161.8% of the overall drop from high. Nobody is looking for these.

 

[ffsear]

Crowd thinking, everyone going after the same stuff. the correct answer is most likely the opposite. go where nobody is looking

As in no liquidity?

 

[Gavin_ron]

Whatever stocks you pick, pick the ones you understand properly, don't just follow the herd blindly