Top Ten Things I Look for in a Stock



I like stocks that I am considering to buy to have these ten characteristics.

  1. I find that stocks that perform the best from me are usually ten percent or less from the its all time high. I don’t like my stocks to have overhead selling resistance from past buyers that are waiting to sell as the price rises to certain price levels because they want to break even when a price gets back to where they bought it. I like to own stocks where every buyer int he stock is setting on a profit and less likely to sell.
  2. I like stocks that show historically support at the 50 day simple moving average or the 200 day simple moving average in a bear market.
  3. When a stock begins to run up before or after earnings I want to see the 5 day exponential moving average  or 10 day sma hold up as support in the up trend.
  4. I want my stock to have a new product, a new business model, a web site, brand, or something unique that can not be easily copied.
  5. The majority of stocks on my watch list with the best charts usually have earnings and sales increasing by 50% or more year over year.
  6. I want the earnings and sales of my stock’s company to both be up at about the same rate, I get concerned if one is at the expense of the other.
  7. I like the stocks that I trade in to have options that are liquid enough to keep the bid/ask spreads to less than .30 cents so I do not lose too much capital entering and exiting option trades if I use then to trade the stock for risk control and leverage.
  8. I like stocks that have consistent low volatility daily ranges.
  9. Stocks that I trade have steady price behavior with historical support, resistance and price channels that can be observed.
  10. My best profits are made in stocks that have huge earnings expectations based on past results for growth.