June 4, 2013 at 12:58 pm

Avatar of amagnifico
Joined: Jun. 3, 2013 Posts: 13

Jon Markman mentions one pretty simple way of stock-picking in his “Day Trader Advantage” book that piqued my interest so I thought I’d put it out there.

Basically you start by taking a bunch of the Dow Jones sector indexes, create a chart that shows each one’s performance against the S&P, and look for some sort of trend that’s “meaningful and long lasting.” Then you look at the top 20 or so stocks in a given sector, and use those charts, etc. to drill down to one or two for either a long or short trade.

Wondering what other ppl might think of this method, and whether they’ve had better (or worse) luck working off of other things, like sector-based ETFs for example.

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