A few Mello moons ago, in the good old days when we were allowed outside to do various fun activities that are now strictly prohibited, I recall a young chap (I believe his name was Glen Arnold) mentioning that in the 2015 commodities crash, he looked at the lowest cost producers. And then he bought them. He bought the last men standing. It stuck with me because I knew that I needed to have a serious game plan for when the opportunity comes too, as he did very well by having a plan and executing it.

I’ve looked forward to a proper early stage bull market since I started my career. It may take a while before it comes, but when it does stocks will start moving quickly. I have studied the charts of stocks back in 2008 and one thing was clear: once they had risen 100% up from the lows the trend would almost always continue upwards – you just needed to find a good entry point and get on board.

Building a game plan

In trading, we want to find opportunities where the risk/reward is skewed in my favour. That is, where we can risk some to hopefully make more, and repeat this edge over the long term through robust position sizing and risk management.

The market is manic at the moment and I have started to draw up a list of shares that I believe offer outsized returns pending various scenarios.

I would be delighted to hear your list too, as many of my good trades have come in the form of leads from others. If there is one thing I have found it is that sharing knowledge can supercharge performance.

We know that some companies are going to go bust. We know that some companies are priced to go bust, but won’t go bust. Being able to spot stocks that are undervalued and have been savagely sold off so far can be a profitable trading strategy as we saw a few articles ago, but this time thinking more longer term and getting on board a trend. These aren’t investment ideas, and I don’t care much for the fundamentals of a stock, but I do want to find stocks that have the potential to rally strongly.

JD Wetherspoon or Revolution Bars Group?

I previously had JDW on my list. Everyone…

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