I have a method for buying and selling stocks. I will document it here.
The Method is to simply identify a stock in a trend. It doesn't matter if that trend is up or down, just that it is trending. Look at the chart to see if it's trending or not.
I look for a long smooth trending stock. The reason for this is that when the stock reverses, the bounce will usually be short, say a day or two, before resuming its trend. Use these short bounces for an entry point.
I wish there was more to it than that. It seems so simple. It's just trend following. But you should stick with stocks on a long smooth trend, with not a lot of big black candles, just small candles and you can see that the trend resumes shortly after a small bounce or dip.
Only 30% of stocks are trending at any given time. So what if the stock you want to trade is not trending, but just bouncing up and down and sideways all the time? Stay away from that stock and play the smooth trending stocks. Why be difficult?
I will follow this post with a watchlist I created this weekend that lists a bunch of trending stocks. I will trade some of them next week and see how it goes.
Good luck, everybody!