For those who are not gunslingers and respect risk in the stock market, I designed a five-part screen to find stocks for short-term trades from our universe of 3000 U. S. stocks and 1000 international stocks that can really take off if there is a Santa Clause rally.
Please click here for an annotated chart of RF Micro Devices.
Please click here for an annotated chart of SunEdison.
Please click here for an annotated chart of GoPro.
Before discussing the top three stocks that can provide high risk-adjusted returns, take a few minutes to understand the screen. Risk-adjusted return means achieving a return higher than the one commensurate with the risk taken.
As a full disclosure, especially for my long-time regular readers, the screen discussed here does not satisfy the six screens of the ZYX Change Method. Here are the subparts of the screen.
High liquidity to reduce risk
The first subpart is stocks that have traded an average three-month volume of over 10 million shares. High liquidity reduces risk, allows traders to easily get in and out with large quantities, provides low bid/ask spreads, a large following ensures quick dissemination of news, and the stock is difficult to manipulate.
Price to reduce risk
This subpart excludes stocks trading below $10. Our extensive back testing as well as 30 years of experience in the markets shows that low-priced stocks carry more risk.
Smart Money buying
Over the last 30 days, the Smart Money has consistently bought these stocks on dips as shown by our proprietary algorithms…Read more at MarketWatch
You are receiving less than 2% of the content from our paid services …TO RECEIVE REMAINING 98%, TAKE A FREE TRIAL TO PAID SERVICES.
Please click here to take advantage of a FREE 30 day trial.
Check out our enviable performance in both bull and bear markets.
