Wyckoff trading method, page-1882

Hi Beany,

Below is the list of stocks that I'm holding right now but before I list them, I'd like to give you a brief explanation of my basic methodology.

To start with, I only trade, as a rule, within the Top 200 stocks, due to their institutional support.

What I look at in the first instance, is the Charts, and the stocks need to be (in my view) in an Accumulation phase, either after a Downtrend or as a Pull-back.

If a stock looks promising on a Chart, then I will check the Fundamentals. The method I use for this is quite basic though and anybody can do it. I will use MYX - Mayne Pharma, as an example, as it was a stock that I have mentioned just recently.

1- What sector is this coy in? MYX - it is in Healthcare, as a manufacturer and distributor. This is a very good sector in my opinion;

2- How long has this coy been operating for? For me at least 5 years is preferable, but not necessary if other things look really good; e.g. CGC and A2M - wonderful stories unfolding.

3- What' their Revenue like? Has it been going Up consistently over the years? As you can check on your platform, MYX's Revenues have been increasing over the last good few years.

4- How is the Net Profit lining up by comparison to the Revenue? Is this also increasing? Yes, in our case of MYX. What this means is that the coy, generally speaking, is well managed.

5- In the Balance Sheet, what sort of Debt is the coy carrying and how do the Assets line up against the Liabilities? In MYX's case they appear to be ok and there's no need to go into any deep analysis.

So Fundamentally it does look to be in a good Sector and performing well. Mind you, no Dividends history, but that's not an issue if the coy is concentrating on growing.


The reason why I like to have a look at the Fundamentals of a coy is because I believe that if a coy is performing well it will be reflected in its finances, especially over a good period of time, and it is more likely to continue to perform well in the future.

6- When to I enter a trade? As soon as I am confident that the Price has found a good Support base, I will Buy the stock.

When do I exit a stock? As I invest for the medium to longer term, I will give a stock a fair leeway but will sell it if the stock has had a good run and is likely to have a good pull-back or even change trend. Not easy to do and even harder to explain.

Here's the list:

A2M AAC API CDD CGC CWY CSR IFN IPL MYX OFX ORA PRG SIP SPL.

I had FLT but sold recently. Bought in at $29- and sold at $36-

If you look at my list, I prefer to hold stocks that are trading at less than $5- (FLT was an exception). The reason for this is that the price is still relatively low and this could mean that the coy may still be in its infancy and thus have a potential for good growth.

Cheers Beany.

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