Members would have noticed that our latest Momentum Monday report included an entire new section titled the “Shine Zone”. This entry is an explanation of possible uses for the list.
In the spirit of Stockopedia’s objectives and mantra, this "Shine Zone" section and the stocks within it do not equate to a tip sheet. And to be frank, nor could it be. It is extensive, unwieldy and therefore not replacable.
So why do this? As the name implies, it seeks to shine a light on stocks in the “Zone” from a Momentum perspective, that we can then focus our attention. This helps us not waste our time (our most valuable commodity) on stocks whose charts do not command attention given their price chart.
The “Zone” that we have constructed is similar to the learnings I have been sharing previously. There is extensive coverage retained within past editions of Momentum Monday and in my chronicled “Momentum Investing journey” (links available in the most recent Momentum Monday edition.)
Their grounding is a combination of learnings including those of Charles Dow, Stan Weinstein, Joseph Granville, life experience and hurt money.
It is important to stress here that the “Shine Zone” only satisfies one part of the trading process, the buying process. It does not cover the sell process. I articulate my entire process in my articles.
The pragmatic nature of technical analysis means I cannot vouch for any specific past performance that can stand up to the rigours of assessment. But what I can say is that they work for me. And likewise you need to determine through your own investigation whether they are right for you.
In 2020 when I left my previous employer and became a self-funded unemployed fund, I was remarkably successful both then and in 2021. So much so I managed to continue my freelance endeavours whilst also growing my portfolio. However in 2022, it did not yield as good a portfolio performance, however arguably I believe it was more successful, as I met the objective I had set out to achieve when I started my Momentum journey which was to protect my downside and keep my profits. And let me tell you, there was plenty of downside in some of the hot runners of the early twenties.
So to use my example as…
