The candlestick chart (tradingview.com) below will give you a sense of sanity as you hold your stock for short-term periods. Genius Group (GNS) just had a price drop, but I’m planning to hold it for a 1-month period at least (Eccl. 11:1; Luke 19:12). The green vertical lines indicate that the stock is growing again. This can help you decide with more precision about whether to hold a stock or sell a stock.
Solomon says, “After many days you may receive a return” (Eccl. 11:1). So day trading is out of the question. WAIT FOR IT! Patience is a virtue: wait it out for a month. Don’t obsess over the movement of the stock’s price or your emotions will drive you literally crazy. Force yourself to NOT watch the stock for a full 30 days straight, after you settle on the purchase, of your heavily analyzed stock selection. You don’t want to be obsessively, hyperactively responsible with this stuff. Let the money go to work! It takes time for businesses to make use of money in a productive way. At the 30-day mark, then you can make a decision about whether to hold, sell, or buy more shares of the same stock. Charles Schwab said, “Don’t keep a daily record of your portfolio. Look through it carefully on a monthly basis instead. This will help you avoid spur-of-the moment decisions” (How to Be Your Own Stockbroker, p. 93). It seems that using Finviz to screen stocks for weekly performance is a good starting point; and then to check the stock ticker’s performance on a Google chart for 1D, 5D, and 1M. But after you’ve made up your mind, and you’ve bought the stock, then just leave it alone for a month, and hold it for at least this long: don’t keep going back to schwab.com every other day. Maybe this would be good to do when you first buy a stock, just to reassure yourself that the stock is working the way you thought it would. But after that, write a note to yourself that you will not open up your schwab.com account for 30 days straight. This is going to have to take a lot of self-control. Just stay busy, go to work, be patient, and then later see how it turns out. Hopping on the gravy train is not based on skipping around from one stock to another one every other day. A lot of this has to do with self-control and patience: “after many days you may receive a return” (Eccl. 11:1). Tell yourself this: that the risk you’ve taken on this stock just might, in fact, very probably result in a handsome reward of returns for you: but only after waiting for many days…so BE PATIENT! Monitoring the stock every other day won’t help you to grow your money any faster. SO JUST WAIT FOR IT!
THE KEY TO DRAMATIC CAPITAL GAINS
Just be sure to read this SEC article first – https://www.sec.gov/reportspubs/investor-publications/investorpubsmicrocapstock
The above is the most powerful finviz.com screen that I’ve developed for high growth short-term trading stocks. Not all of them are home runs, but the hit rate is very impressive.
The Finviz Screen: All tab –> Market Cap: Micro (under $300m) –> Performance: Month +50% –> Performance 2: Week +30% –> Volatility: Month – Over 15%.
THE HOME RUN HITTERS: What I found refreshing is that this screen only populated a total of 20 stocks to analyze. Whenever I screen on Finviz for a list of stocks like this, I will then plug them all into Google and look at the performance projections on the Google stock charts for 1D, 5D, and 1M (especially this last one). Out of just 20 stocks to review, the best ones, in terms of 1-month ROI percentages were the following (this is REALLY impressive):
1. GNS – 1,142%
2. INBS – 439%
3. CUEN – 302%
4. DMTK – 269%
5. APPH – 255%
UPDATE: 1/26/23 – Unfortunately I only got around to buying some shares of Genius Group (GNS) right at the end of its rally (initial growth phase). I got only 1 day of growth out of it. Which I’ll admit was very exciting to watch. But the next day the rally was over and I had to sell the shares or I would have lost my principal deposit. The lesson that I’ve learned seems to be this:
Probably the smartest way to make money by trading microcap growth stocks is to screen Finviz for high-weekly performance stocks every single day. Keep your money as “cash” in your brokerage account and just wait for the next stock rally. You’ll know it when it arrives like a train coming through town: the Change column will say 200% or something and the Google chart will have a constant upward slant (no interruptions, no jagged movements). That’s a stock rally. The key to financial growth through stocks is to wait for the next weekly stock rally, and then when it arrives, ride it boy! Ride it like a bucking bronco! But don’t pretend that you’re going to ride it after it has stopped moving. If you do that, then you’ll lose your money most likely. Put it into “cash” and wait for the next rally; and check your preset Finviz screen every single day.
UPDATE: 1/29/23 – In the Encyclopedia of Investments (p. 168), it says that IPOs have their most dramatic growth spurts, in the first two years of being in business. Here’s a Finviz screen aimed at just that: 2-year nanocap stocks. Since they’re cheap: I say buy ’em all. Purchase 1 share for all 163 of ’em…and watch to see if one blows up. Unless of course, Google indicates its an LGBT-crazy business. Then I wouldn’t recommend making ill-gotten gains from such a company.
UPDATE: 1/30/23 – I made a boo-boo. I bought and sold, bought and sold, bought and sold, bought and sold a whole bunch of different IPO stocks all in the same day. The reason for this mistake was that Finviz and Google said one thing about the positive upward change of the stock prices, but then when I’d go to buy a stock, the volatility was so different, that my stock value plummeted right after purchasing it. My second mistake was that I tried to trade large amounts of money while doing this, but you’re never going to hit a home run doing it this way, because Finviz and Google are giving you stock price information from the past. What you need is a real-time reading on the stock price. The only way to do this is to have bought 1 share of the IPO stock already in schwab.com and watch it throughout the day. Its kind of like hunting squirrels in the woods. You have to wait, you have to watch for squirrel movements in the trees: then when you’ve spotted the new squirrel, take your best shot. Schwab’s Margin Services Department said that I accidentally ran into using their “good faith” money, because it takes about 5 days for a stock sale to settle in your “Settled Funds” account. They also gave me a 90-day stock trading suspension to teach me the lesson. I accepted the punishment, because I’ll be the wiser for it after its over with. I spoke to one of their reps recently, and said, “Its weird but, I’m reading One Up on Wall Street by Peter Lynch right now. The day after I received the Margin Services message, I read in the next chapter about frantic traders buying and selling, buying and selling, buying and selling stocks all in the same day: and how that’s a bad thing (p. 60).” Then I told him, “After this is over, and I don’t know if you’ve heard of other people doing this: what I’m thinking of doing is buying a mess of IPOs, like 100 IPOs (1 share), and just waiting for one of them to blow up to like 200%. Then I’ll put a bunch of money into that.” The rep’s response with a positive excited tone: “YEAH!…YEAH!” So I think I’m going in the right direction now. He even offered to ask his team if he could lift the suspension for me. But I said, “No, no special requests. I’ll be the wiser after its over with. But thanks though.”