I am a position trader. I run a very concentrated portfolio of fundamentally strong/high growth companies demonstrating extreme relative strength. I follow these stocks and monitor their charts closely for "technical buy signals- Breakouts from bases, breach of a pivot point, or trend continuation signals. My goal is to start a position in these market leading stocks where I know I am right from the start. I like to focus on companies that are changing the way we work, live, and play. Firms that have the potential for explosive growth and massive stock price appreciation.
I usually initiate a starter position while the stock is still in a constructive base, around 25% of the total target position size. If the stock breaks out on sufficient volume and holds the pivot, I will add another 50%. Once I feel confident in the overall market and my specific stock selection, I will add the final 25% to get to full size. If I do this properly (both my stock selection and entry) I will continue to add to my position as long as the trend continues to advance in my direction. I do not set targets for my stocks, but do employ a number of offensive and defensive selling techniques to perverse capital and help lock in gains.
After two plus decades of trading, I have slowly started to find what works for me. I used to play small movements in hundreds of stocks, trying to pick up 3-5% a trade. Through intense introspection and studying myself, I realized my personality was much more suited for position trading. For me, trading to get one 50% gain was easier for me then trying to get ten 5% gainers.
It finally clicked what Jessie Livermore meant when he wrote the big money was not in the individual fluctuations, but in the main movements of the market. He would size up the entire market trend and place his bets to take advantage of the larger moves. However, big moves take time to develop. Time requires patience. Not only to sit in winners, but sit out of the market when conditions are not conducive. This means having the patience to follow your plan.
I am a student of the market and take my cues from the greats who played the game before me. Darvas, Livermore, O'Neil, PTJ and Zweig to name a few. I employ the Bruce Lee methodology of absorbing what is useful, rejecting what is not, and adding what is essentially my own. Through this process, I am constantly researching and refining my own experience, always tinkering and adjusting my next market operation by reviewing my past ones.
This website is meant to be a collection of my thoughts against the backdrop of the names posted above. I want to share my research and market insights along with my operations--both my misses and home runs. I also believe in writing to learn. As William Zinsser states in his book, "Writing to Learn" , writing about a field of knowledge is the best way to immerse oneself in it and to make it one's own.
Copyright © 2019 Bullish Growth Stocks is fully owned by McCabe Capital Advisors, LLC. All Rights Reserved.