Wes Miller asked 6 months ago
Owen Staff answered 6 months ago
Hi Wes, Pat made this video for you: https://youtu.be/Oqo810D3g-w
Hey Wes, this is Pat Walker from Mission Winners. First off, I want to sincerely thank you for being a VIP member. I genuinely appreciate it, and I mean that. I try really hard to help and take what I do very seriously because I respect you and everyone in our community. This business is tough, and my goal is to make it as understandable and approachable as possible.
You've been trading for a while, and I can relate to your journey. Bill O'Neal changed my life. I had the privilege of sitting down with him twice over lunch, and I told him how much he influenced me. When he passed away, it was a sad day because he was a hero to me, both as a trader and as a person.
You mentioned struggling with deciding which stocks to take. That's a great question, and I'll answer it directly: Focus on clean and simple flat base breakouts. Commit to mastering this setup. Don’t get distracted by fancy, complicated patterns. Just stick to the basics – simple base breakouts. Trust me, it works.
Look at examples like Eli Lilly. That simple base breakout with volume – that’s what you want. Always ensure the stock is in a leading group, has a great base, and a high composite rating, ideally 90 or higher. Most of my MarketSmith screens filter for a composite rating of 90 or above, sometimes 88 to catch those that might improve during the week.
Regarding how many stocks to own, five to eight is plenty. Only go up to ten if the market is really strong and you have a good profit cushion on your current holdings. Focus on the simplest bases because they’re easy to see, which increases the likelihood that other investors will also buy, creating momentum.
The stocks on the Key List™ are vetted, and they have the best numbers. Trust in those selections. Focus on simple base entries. Don’t own too many stocks – eight to ten is the max. And always monitor them closely with alerts set up on all your stocks.
For position sizing, take your total account and divide it by eight or ten to determine how much to allocate to each stock. For example, if you allocate $10,000 per stock, start with half of that ($5,000), then add $3,000, and finally $2,000 if the stock is performing well. Master this incremental approach and never add more unless the market and the stock are both doing well.
Remember, start small and build on your successes. Ride the trends and always control your risk. I hope this helps you, Wes. If you have more questions, don't hesitate to ask. Let’s keep working at it, and thank you again for being a VIP member. Let’s keep moving forward together!
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