I’ve been on Stocktwits since the beginning in 2006 and following Howard Lindzon and other investors online for even longer. I’ve had one of the best 10 year periods in the market and have benefited greatly from just increasing my savings rate. Unfortunately, I have not had the need to really learn and understand different trading styles. I’ve moved away from Stocktwits as it is too noisy. I’ve followed @alphatrends for a very long time and first learned about the VWAP when he first started talking about it. Lately I’ve found @traderstewie and signed up for his service. His service is great but has too much going on for my current situation.
So where does that leave me? I just read “8 to 80” by @howardlindzon and @ivanhoff2. It discusses identifying stocks that will make outsized moves and how to ride those trends. The part of the book that stuck with me the most was the part on recent IPOs. The buy/sell dynamic on these stocks makes sense to me and the patterns in the book seem more consistent.
My plan for the next month is to turn off the noise from external stock tips and begin to hone my skills based on the concepts in the book. Before I invest real money, I am going to work on consistently reviewing stock patterns for recent IPOs and putting down my thoughts.
Here are my thoughts on my first scans using finviz.com:
AFYA: Buy now @ $28.93. Stop under $28
AVTR: Watch for break over $19.50. Stop TBD
Could buy it now for $18.50 with a stop at $18.15 if you think this is a higher low as it moves to the ATH of $19.50.
CNR: Buy strong break of $9. Stop under $8.42
CVET: If it bases for a few days, buy strong break of $15 (no good spot for a stop)
FVRR: Buy now @ $25.60. Stop at $24.50 or just under $25 depending on risk
JMIA: If next day or two, buy red-to-green open (@traderstewie concept) stop @ $6.90
PLMR: Buy strong break of $55. Stop under $50
SWAV: Buy strong break of $45. Stop at $41.60
TMDX: Buy strong move over $20. Stop under VWAP at $18.93
YJ: Buy over $5.60. Big stop at $5
We’ll give it a few days and see what happens.