Every Monday, I send you my three top trade ideas for the week.
I post these on the Stock Surge Daily website right here, and I also send them directly to your inbox ahead of the opening bell.
I try to be as straight-forward as possible.
But I sometimes forget that some of our readers are new traders who want a bit more guidance.
And that’s totally understandable… It’s fairly easy to get confused about where and when to buy a stock.
So, today, I’m going to slow it down.
And we’ll walk through, step by step, how to know where I’m buying so that you can follow along.
Stock Charts
Now, regular readers know that I put a lot of emphasis on charting and technical analysis.
So, along with the key fundamentals about the stock, I always include a marked-up chart for each of my picks.
For example, check out the chart of Evercore Inc. (EVR) above.
This was one of my picks from the Sept. 20 Watchlist.
You’ll notice two horizontal lines on the chart — a green one and a red one.
The green line represents my entry point, or the level at which I plan to buy.
The red line represents my stop loss, or where I plan to sell if the trade does not work out.
(If you’re new to Stock Surge Daily, read more about how to control loss right here.)
But here’s the important part… This is what some people don’t fully understand.
I am not buying at the current price.
I will only buy the stock if it hits the green line and “triggers” the entry.
Be Patient for the Right Entry
Some of my picks trigger an entry on the day I publish them.
But some don’t hit my entry point until several weeks later.
Either way, I will not buy the stock until it hits the level indicated by the green line.
I always wait for confirmation that a stock is moving in the right direction.
For example, Evercore didn’t hit my buy trigger until 17 days after I added it to the Watchlist.
For another example, we added YETI Holdings, Inc. (YETI) to the Watchlist that same week.
I needed to see a move above $105.65 before buying.
But that never happened…
Price broke down before our entry trigger was ever hit.
And because YETI’s price action didn’t confirm the breakout, I never bought it.
Listen to the Market
Now, here’s the key takeaway that you need to remember…
Not every stock on the Watchlist will turn into a live trade. I only take those that hit my entry price.
Some weeks, we’ll see several stocks trigger and entry. Other weeks, none of the stocks will.
So, listen to the market…
And rather than jump in immediately, let the stocks tell you when to take action.
Embrace the Surge,
Ross Givens
Editor, Stock Surge Daily
