Looking For Great Stocks? First Use A Checklist To Identify Great Bases

Before you travel a long way, you make a checklist of what to do. You pack clothes. Ask your neighbour to collect your mail. Lock all the doors. Then finally you go. By checking everything off your “to do” list, you eliminate many unnecessary bumps along the way.

Adopt a similar mindset when you prepare an “investing trip” with a growth stock.

With MarketSmith India’s research tools, you can quickly build a watch list of potential market stars. But your work doesn’t end there. To raise the probability of notching a 20% winner here and a 200% screamer there, you need to devote time to identifying those stocks that already show signs of strength.

A price base serves at least two vital functions. One, it marks the beginning of a resting phase for a stock that has already moved sharply higher. This rest period can last as little as four weeks or as long as 65 weeks or even longer. The base gives big investors a chance to pick up shares as others unload their shares to cash in gains.

Once the herd of desperate sellers has dispersed, a new crowd of hungry buyers sends the stock catapulting to a new advance. Whether you’re a brand-new MarketSmith India client or a veteran CAN SLIM stock hunter, you can always benefit from this checklist to help you sort among your stock candidates and increase your profit potential.