Last year, I had a blog in regards to applying the VectorVest simple technique. The blog post was entitled “How To Make Money With VectorVest – Using the Bascis Well!”
In this blog post, I wanted to revisit the VectorVest simple technique: Finding smooth left to right price patterns with rising earnings. As an extra check this time round, I also checked to ensure the Earning Growth Rate (GRT) is positive!
Once again, this technique proves very successful in a rising market. Remember, the key is to apply this technique only when the market is in an uptrend.
To recap this technique again, we apply VectorVest simple as follows:
1. What to Buy
Build a WatchList of stocks that have smooth left to right price patterns, risking earnings and check RV (long term price appreciation), RS (how safe a stock is, a fundamental indicator), RT (the technical indicator of a stock) and VST (fundamental and technical combined indicator) .
2. When to Buy
Now that you have the portfolio put together, it is time to identify when it is time to enter in and buy the stocks – applying the GLB/RT Kicker Timing signal or the confirmed signal. Before placing any trade – ensure that your stocks in question continue to meet 1. per above
3. When to Sell
Once you have bought your stocks, apply the 4 steps to protecting profits: Volatility and direction, RT < 1, Price < 40DMA and REC=SELL
Click on the link below to see this technique applied in the last confirmed up – that being 14 December 2016 and run through to current date (2 February 2017 per time of this post).