Most investors have had a tough time in the turbulent stock market of 2022 (SPY). Now more than ever, they need a reliable way to identify winning stocks, regardless of current market conditions. The key to success is to take the guesswork out of investing by letting computers do the heavy lifting for you. First, by narrowing down to the soundest fundamental stocks using the POWR rating system. Then apply advanced technical analysis to find the most opportune of those stocks ready to break higher now. This is what I discuss in more detail in the article below. Read on to find out more….
So many traders and investors are always looking to get rich quick without any effort. Most never find it. They simply shuttle from one get-rich-quick scheme to another in the eternal quest for gold.
In the end, they always end up with fool’s gold…
Let me be the first to burst the bubble and tell you that the ‘Fountain of Youth’ does not exist. You cannot lose weight without diet and exercise. Earning money takes hard work.
Luckily, though, there are ways to get someone else to do the heavy lifting for you. Two of the best ways I’ve found are StockNews’ POWR Ratings and Market Club’s Trading Triangles.
Using these two sets combines the fundamental strength of POWR notes with the technical prowess of trading triangles, leading to some serious overperformance.
Then I add my 30+ years of trading experience to uncover highly rated, quality stocks that are on the verge of a breakout.
Combining all of this into one trading program results in the POWR Breakouts portfolio that I manage.
A brief description of each of the components is presented below. I use each of them in my daily trading decisions for the POWR Breakouts portfolio.
The fundamentals – POWR ratings
StockNews created the proprietary POWR Ratings model to put the odds of investing success firmly in your favor.
It is truly one of the most comprehensive stock rating systems available to investors today. In fact, we analyze 118 different factors for each stock, each of which contributes a little to the stock’s probability of outperformance.
The combination of all these factors is behind the +31.10% annualized return of “A” rated stocks, outperforming the S&P 500 by almost 4 times since 1999.
Do not worry…. you won’t need to analyze all 118 factors for each stock. We’ve simplified the process by reducing it to an overall POWR rating that clearly identifies whether the stock is likely to outperform (A and B rating).
The techniques – Market Club Trading Triangles
Know exactly when to enter and exit the market!
This complex analysis hides behind easy-to-use, easy-to-understand signals, giving you the answers to make confident investment decisions.
Instead of finding a single trend, they confirm trends for multiple time frames to put the mathematical odds in your favor that you will be on the winning side of that swing.
These signals are not meant to capture highs and lows. Instead, signals help members find the majority of a swing trend.
Green triangles suggest positive trends
Red triangles suggest negative trends
Monthly triangles determine the trend and possible entry points.
The weekly triangles determine the time of departures, entrances and re-entries.
Interestingly, the two services (POWR Ratings and Trade Triangles) do not claim to have a foolproof formula. Far from there. They do a lot of hard work to generate the results.
Instead of a magic bullet, they both declare that they seek to put the odds on your side.
Ultimately, trading is about probability, not certainty. There will be losses, but the winners should more than outweigh the losers.
Trading is difficult and takes time, hard work and discipline. There is no easy way to make money. The key is for computers to do the heavy lifting.
For realistic traders and investors looking to achieve above-market returns, using the combined efforts of the fundamental foundation of POWR ratings with the technical insight of trading triangles can help boost your odds.
Factor in management by an industry veteran who isn’t afraid to take small losses and let the winners run, and the likelihood of long-term success increases even more.
What to do next?
Check out my 7 hand-picked stocks poised to explode even amid the turbulent stock market of 2022. Plus, 2 more picks are coming this Monday morning.
All you need to do is start a 30-day trial for POWR Breakouts to start enjoying more winning trades in the days and weeks to come.
Start POWR Escapes 30 Day Trial >
Editor, POWR Breakouts Newsletter
SPY shares fell $0.84 (-0.21%) after hours trading on Friday. Year-to-date, SPY is down -13.34%, versus a % rise in the benchmark S&P 500 over the same period.
About the Author: Tim Biggam
Tim spent 13 years as Chief Options Strategist at Man Securities in Chicago, 4 years as Chief Options Strategist at ThinkorSwim and 3 years as a Market Maker for First Options in Chicago. He makes regular appearances on Bloomberg TV and is a weekly contributor to the TD Ameritrade “Morning Trade Live” network. His primary passion is to make the complex world of options more understandable and therefore more useful to the everyday trader. Tim is the editor of the POWR Options newsletter. Learn more about Tim’s journey, as well as links to his most recent articles.
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