This is episode #9 in a series of 16 Investing Opportunities articles. In this edition we continue our thinking in the same direction as last week when we wrote Investing Opportunities #8: Top Sectors In 2020. Stocks look one of the most promising asset classes, if not THE most promising, for 2020. And even though we did identify 4 stock sectors, with 1 top play per sector, it does not mean that we take a rest until the end of 2020. The theme of this edition is to illustrate how the hard work continues, and is meant to continuously challenge previous ideas and even come up with better picks. After going through +1000 charts we created a watchlist with 20 really good looking stocks. Which are those stocks, how exactly to handle them, did we find a top play and how do they compare to the ones we already identified not only last week but also in the last months? Those are the topics we discuss in this article. In our continuous research we did find 2 plays particularly that are part of our MOMENTUM INVESTING method and our mission to turn 10k Into 1 Million In 7 Years. Note that the 16 episodes of Investing Opportunities is the trial before we launch this as a regular premium service.
Last week’s conclusion was this:
Our list of potential sectors consists of semiconductors, banking stocks, uranium stocks, and MJ stocks.
We did break down this list, and indicated why we believe in the potential of each sector but also indicated when our thesis is invalidated.
Our newsletter members got an even more detailed report with 4 specific stocks, with entry point specifics and attention points.
What we want to focus on now is the potential pitfall of just sticking to previous findings.
Investing is a verb. As per Tsaklanos his 1/99 Investing Principles it is 1% of the time investors should take trades and the remaining 99% of the time they should be researching, analyzing, verifying the validity of their investing thesis, looking for any trend change(s), etc.
That’s exactly what we did after last week’s update. We continued researching, thinking, validating the trends that are at play but also scamming the market for even better opportunities.
Every new marginal insight can only be helpful to get more out of our trades.
However, what we observe among investors is that they take a trade and then only start reading news items and follow writers or analysts that confirm the underlying rationale of their trade. This is bias, and should not be confused with objective research.
Our very first insight in our list of 100 investing tips is this one:
Discipline is one of the most important success factors. Only very disciplined investors are able to repeat successes, and outpace profits versus losses.
This implies that even if we already took a trade last week, we can still optimize or simply override it.
So how did we spend our time this week?
- We went over some 1300 charts covering some 700 securities.
- As per Tsaklanos his 1/99 Investing Principles we identified some 10 securities that look really god.
- We did complement them with the ones we identified last week.
What this type of exercise helps us to do is put our previous insights and stock picks into perspective. It also helps validate if we are truly looking in the right direction (right sectors) or if we missed some crucial sector(s).
Our detailed findings are documented in the remainder of this article.
Because of the high value of this we reserve the remainder of this article, with actionable details, for subscribers to our ‘free newsletter’. This is premium content that we give away for free, but only after signing up to our free newsletter. Subscribe to our free newsletter and get premium investing insights in 2019 for free. Sign up >>