The Secret To Buy Winning Stocks
There are thousands of stocks trading on the global stock market. What are the secrets to find the very best stocks to generate massive gains?
DT7 (Derick Tan 7) Methodology offers clear guidelines on what one should be looking at to pick a winning stock and it’s PVT PIMR components has a proven track record of significantly outperforming the major stock indexes globally. Outdoing industry benchmark is the key to generating exceptional returns over the long term.
1 of the important PVT PIMR components of DT7 Methodology is P - Chart Pattern. One should wait for a stock to form a base and then buy once it reaches a buy point, ideally in heavy volume. In many cases, a stock reaches a proper buy point when it breaks above the original high on the left side of the base. Let’s take a look at 1 example: Innovative Industrial Properties, Inc (IIPR), which is a Real Estate Investment Trust (REIT) for the medical-use cannabis industry in U.S. Noticed how IIPR broke up from a 1.5-month Double Bottom chart pattern with increased trading volume, so I entered to buy at US$253 (red circle). It is now up by +11.5% and time maybe ripe for me to grab some profits as it has now almost reached the POTENTIAL price objective at around US$282.93 ((251.98–221.03) + 251.98) based on the Double Bottom base.
Another key part of the PVT PIMR formula is the M, which stands for General Market. Most stocks, even the very best ones, follow the market direction. Trade or invest when the stock market is in a confirmed uptrend and move to cash or short-sell when the stock market goes into a correction. Dow Jones, S&P 500 and Nasdaq are all now at record highs in the midst of the Melt-Up phase. However, traders and investors should be wary of the fact that these indexes are in danger of becoming a bit extended, so a 5%–10% correction MAY take place soon before the strong uptrend continues into end of 2021.
Now is PROBABLY a good time to look at buying strong stocks breaking out of sound chart patterns. Below MAYBE 1 potential candidate:
Adobe Inc. (ADBE) is a software company which offers products and services used by professionals, marketers, knowledge workers, application developers, enterprises and consumers for creating, managing, measuring, optimizing and engaging with compelling content and experiences. Noticed that it is now in the process of completing a base and any break out to the upside MAYBE a good entry point.
For those who wish to learn about PVT PIMR and how to apply the time-tested DT7 Methodology to buy winning stocks, you can contact Victoria at +60 182494301 to join me in my once-a-year DT7 class, whereby the next one will be conducted in April 2022. Alternatively, click here.
DT7 — A Winning System in Good & Bad Times!
** Please note that what is being shared in this article is NOT meant to be regarded as an advice or a recommendation, it is meant for EDUCATIONAL AND INFORMATION PURPOSES only and it does not constitute an investment advice, an offer or solicitation to purchase or sell the investment asset classes mentioned. **