Single Best Way To Find A Hot Stock (it’s counterintuitive)

Jack Carter | December 19, 2023

Lots of people say “Buy Low, Sell High”…

But how are you supposed to do that? What counts as low?

How do you know the stock isn’t going to drop lower after you buy it?

That’s why I trade in a completely different way. It goes completely against common sense.

So what do I do? I start by looking for a stock that has made a new 52 week high.

But that alone is not enough. The stock should also be in a good, strong, bullish trend. Somewhere between 4-6 months is what I look for.

Here are a few more parameters I look for to filter out the junk:

  • It must trade on a major exchange (no penny stocks)
  • Has over 500,000 shares average daily volume
  • Greater than $25 per share
  • The stock has tradeable options

So to recap:

If you find a stock that has hit a new 52 week high, has been in a good 4-6 month bullish trend and meets the criteria listed above, you can move to the next step.

Here’s how I trade it:

I place what’s called an OCO trade: “one cancels other”

What this means is you place one order above what you paid for the stock, where you’d like to take sell and take your profit.

Then you place the other order 7% below where you bought the stock. So the most you can lose is 7%.

And again, these are not separate orders: You place them together so that when one triggers, the other one automatically gets cancelled.

Again, doing it this way, the most you can lose is 7% from where you entered the stock.

If your broker doesn’t have that kind of trade for you to set up, you can do something else.

You can just do a regular stop order. Put it in for 7% below what you paid for the stock, so you limit your downside.

Some brokers even let you set what’s called a trailing stop. That’s an order where the stop “follows” the price as it rises.

So if the price rises 10%, but then falls 7%, the sell order automatically gets triggered and you end up with a roughly 3% gain.

It’s a good way to set orders so you don’t have to constantly be watching the market, but also you protect your downside.

Add that to your trading and stay tuned for 2024. We’ve got a lot of great lessons in store for you.

Trade well,

Jack Carter

P.S. If you want to see what I’m trading… click here and watch the video.

Trending Stocks of the Week — Dec 18, 2023

Jack Carter | December 19, 2023

To help you discover the power of trends, every week, every week, I share with you a handful of the top trending stocks.

These stocks are picked by the custom-built TrendPoint software I designed to pick the strongest trending stocks in the market right now.

If you know anything about me, you know that every trade I get into starts with a trending stock.

Unless a stock is in a strong trend, I don’t want to hear about it. In my book, wishy washy stocks are the quickest way to losing money.

This Week’s Stocks

Markets opened strong yesterday and continued their relentless march higher they’ve been making the past few weeks, so the bullish trend we’ve been seeing continues.

This week another 3 bullish picks for you to go long on.

Remember, we always trade in the same direction as the broad market.

  • AMZN
  • UBER
  • WWD

And don’t forget about last week’s picks, which you can find here.

This week’s stocks show a strong trend and could still be in play for the next few weeks.

What can you do with these stocks?

Well, there are a couple of things you could consider — after doing your own research, of course:

  1. You could just buy the stock. This is probably the simplest thing you could do. Then just wait for it to go up and sell when you hit a profit target you’re comfortable with.
  2. You could buy an option. You know I’m not a fan of speculative plays, but every once in a while it doesn’t hurt to throw a little cash at a speculative option. Of course, while options can move bigtime if the stock goes up… the downside of options is that you have a time limit on how quickly you need the stock to make that move.
  3. You could do an income play. If you’ve been following me for any length of time, you know that I’m a big fan of income plays, because they increase your odds of winning. We do this by SELLING options instead of buying them. If you haven’t tried your hand at income trading yet, I urge you to try this exercise for yourself.

    Without risking any money, it will really let you see the power of income trading and why it’s my favorite method.

    Whether you end up doing naked puts, covered calls or some kind of spread, this is really my preferred method to use when I’ve found a great trending stock like the ones on this week’s list.

That’s it for now.

Stay tuned, because I’ll be sending you a new list of TrendPoint Best Trending Stocks every week! (usually Mondays)

Trade well,

Jack Carter

P.S. While markets aren’t blazing like they were from October 27th through the Friday before Thanksgiving, they are still technically bullish.

Still, that change in the market’s demeanor has some investors concerned. Which is why there’s one strategy I turn to, week after week, no matter what the market is doing. Secure your seat at the live reveal here!