CHAPTER 3

SPECIFIC ENTRY POINT® ANALYSIS: THE SEPA® STRATEGY

WHEN I BEGAN TRADING STOCKS in the early 1980s, my idea of a strategy consisted of nothing more than impulse buying of low-priced stocks that had been beaten up. When stocks were trading near their historical lows, I figured they had to be bargains. I didn’t have much success with that approach. In fact, the results were downright dreadful. It wasn’t long before I realized that many of these stocks were low-priced for good reason and in most cases were on their way to lower lows. I did, however, see many stocks hit the 52-week-high list and then skyrocket even higher in price. The question became, What differentiates the highfliers from the duds, and is there a way to identify the big ...

Get Trade Like a Stock Market Wizard: How to Achieve Super Performance in Stocks in Any Market now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.