5 Techniques to Find Winning Stocks

In trading and investing, it very easy to make life much more complicated that it needs to be. It’s easy to get sucked into spending hundreds of hours in the study of Elliott Wave, Fibonacci and Gann before eventually ending up where you started.

In the last 6 years in the stock markets of both the UK and South Africa, the winners in my account have been found from much simpler analysis. It takes a few minutes a day to keep the process under control, within my written trading plan. The rules of the plan are taken from the Successful Investing Quick Start Course which is part and parcel of the VectorVest analysis program.

Successful Investing Quick Start Course

How to find the big stock winners using Unisearch:

  1. High/Lows: All my big winners really started to appreciate strongly when they broke through 52 week highs. On VectorVest, a break of a 52 week high can be added to the search criteria within the Unisearch facility on the program. A list of shares breaking a 52 high can be generated in a single click.
  2. Undervalued Shares: All my winners have been trading at a price lower than the VectorVest valuation. I favor undervalued shares. There is much less risk there. Buffett says, “you don’t know who has been swimming naked until the tide goes out.” Each day VectorVest calculates a value for each share listed on the London Stock Market and AIM. Again, it’s simple to use Unisearch to find undervalued shares that are breaking a 52 week high.
  3. Relative Safety: I only look at shares that have a safe history of making money. I don’t like surprises. There is lots of cash to be made in companies that are growing their earnings safely and steadily. Each evening VectorVest calculates a metric that represents the safety and predictability of the earnings. Once more that number can be added to the mix on Unisearch and this means that now we have a list of all the shares that are undervalued with a good track record of making money that are breaking 52 week highs. This is done in seconds.
  4. EPS: I only look at shares that are aggressively growing their earnings at above 20% per annum. As Ben Graham (Buffett’s mentor) put it “earnings per share growth (EPS) is the engine that drives the share price”. Once more this can be added to the Unisearch parameters. Our list now contains those shares that are undervalued, growing EPS strongly with a safe track record that are breaking upwards through a 52 week high. This is information that each investor needs to have at their fingertips.
  5. Market Timing: Most of all the overall London market was heading upwards during big percentage moves from my winners. The most important thing is to know whether the market is moving up or down. Everything else follows from that. On the VectorVest program we have a totally objective methodology of assessing market direction. This is vital to your success and to meeting your trading objectives.

The process is fully described in the “Successful Investing Quick Start Course” which is built into the VectorVest program and fully available to all who take a 5 week trial of VectorVest UK and USA for only 5 pounds 95p.

 

David Paul

October 4th 2017

2 thoughts on “5 Techniques to Find Winning Stocks

  1. Hi David. Another excellent article.If you are holding a webcast on Monday could you show us how to do the Uni search for these stocks.Thank you

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