Any Financial information, Investment Strategy & Trading ideas displayed on 3MoneyTalk.org are strictly for showcase and documentational purposes, please do your own thorough research. Should you choose to copy any practices detailed on this website; please be advised that neither 3MoneyTalk.org, nor its content contributors, will be held liable for any losses you may incur from a poor investment choice, or any wider financial decision.
Here at 3MoneyTalk, we’ve put together a portfolio using a simple investment strategy: Swing Trading.
Each of the indicated trades below are the result of buying a company with good financials after a large market correction / dip.
Our Investment Strategy
The strategy is simple, setup a stock screener that has the following filters:
- Market cap: 1b+
- Change in price(%): less than -2%
- Volume: 500k+
- Market: Nasdaq (personal preference)
Using the above; you’re able to see a list of all companies that match the criteria and while this method isn’t fool-proof alone, with some very basic calculations (Earning per share/Price to earnings ratio), news analysis, trend recognition and the ability of understanding a quarterly earnings report, you can make a fairly solid argument as to why this stock has gone down and if it’s just a correction, or if there are other market considerations.
Don’t be too disappointed if there aren’t any worthy trading opportunities, just wait it out and check the next day.
Once you’ve found an ideal stock, go over the good investment checklist: ( High Price to Earnings Ratio, low debt, good company growth, no company bad news etc, etc.)
At this point you should have an investment idea in mind, that ticks all the boxes, it is now up to you, on whether you choose to invest.
However, don’t place all your eggs into one basket, always spread your portfolio across many, high quality stocks, this will minimise risk and encourage future success.