About

Short description of my market approach

My equity selection approach is based on PEAD (post earnings announcement drift).

I pay attention to stocks that meet the following criteria:

1) Grow their earnings and sales at an impressive pace;

2) Have just surprised the Street’s estimates by a wide margin after a long period of being neglected in terms of price range and liquidity.

3) Breaking out to at least new 6 month high (I prefer multi-year highs);

Prices trends are fueled by catalysts. The most powerful catalysts always have an element of surprise ingrained in them. The best performing stocks in any given year are the ones that manage to surprise the most often and by the highest margin. The surprises are always earnings related. When they are not related to actual earnings, they are related to expectations for future earnings.

I define myself as a swing trader. 80% of my trades have duration of 2 to 30 days. I pay attention to sudden, catalyst driven, high volume, price expansion in stocks with solid earnings and sales growth. Such an event usually signals the starting point of a process of major re-pricing.

For more details on my equity selection approach, refer to my chapter in “The StockTwits Edge – 40 Actionable Trade Setups from Real Market Pros”

Books that I recommend

The StockTwits Edge – 40 Actionable Trade Setups from Real Market Pros

How to trade in stocks by Livermore

Trading in the zone by Mark Douglass

The Hedge Fund edge by Mark Boucher

TA using multiple timeframes by Brian Shannon

The daily trading coach by Dr. Brett Steenbarger

Enhancing trader’s performance by Dr. Brett Steenbarger

The Little book of behavioral investing by James Monthier

Trading like an O’Neil disciple – Gil Morales and Kris Kaher

The Wallstrip edge by Howard Lindzon

Differentiate or die by Trout

Influence by Cialdini