Managing a Self-Directed Portfolio | Ken Rose, CMT | 1-11-21 | Investing in Growth Stocks

hello investors and welcome to our session here today so interesting day in the market a lot of ups and a lot of downs futures were way down the market had a little bit of recovery that also had an impact on some of the positions in our portfolio and some potential positions so let's go ahead and get underway here today and we'll look at that investors want to welcome you here to managing a self-directed portfolio my name is ken rose and as always it's great to be here to discuss investing in the stock market just a little reminder you can follow me on twitter my twitter handle is at k roic underscore tda i post things related to this area as well as other areas of investing in wave disclosures here today just a reminder that in order to demonstrate the functionality of the platform we need to use actual symbols however td ameritrade does not make recommendations or determine the suitability of any security or strategy for individual traders any investment decision you make in your self-triggered account is solely your responsibility also we use a paper money application here this is for educational purposes only we want to keep in mind that if we're successful on that that's not necessarily indicative of the success would have in our actual live trading account because market conditions do change continuously i also want to thank cameron may for being over there in the chat window cameron's very knowledgeable in this area so do feel free to chat in any questions you have over there in the chat window there's a picture of myself been here about 16 years i've specialized in blending both fundamental analysis with technical analysis i i enjoy this area i love learning new things there's always new things to learn new technologies and the like strategy systems and like i love to teach this area and i love to trade this area as well i'm a contributor on the td ameritrade network i'm a charter market technician i work with think scripting building indicators triggers and strategies so with regards to what we'll be looking at here today we'll do an overview of the market kind of see what's been going on here of late we'll review our portfolio from a profit loss standpoint we'll review our existing positions and also our allocations related to that look to enter in paper trade additions to that and given new time we may also look at past positions we were taken out of and look to add you know perhaps some of those past positions perhaps have setups now that could warrant the the potential of adding to them so in doing that then let's go ahead and take a peek at the overall market and to do that we're going to bring up the thinkorswim platform here and what have we got here we've got here's the s p 500 let's go a little bit longer in time rather than one month we'll go out let's see we got here time frame daily let's go at least six months that should be a nice time frame that kind of catches the current run that we're in so you can see that the market you know the market was moving in this really wild sideways range here and we had this as a level support and this is a level resistance and we had a nice break out here and when you get a break out of a sideways range like that the target is equal to the distance between the top and the bottom of that sideways range and it looks like we just about hit that coming up into this area right here on the way up there we've gone up and you can see that we've been creating higher highs and higher lows as we've gone up there not perfectly but not too bad and this little sideways movement right here is resistance level then looks like thursday of last week we broke out of that there's friday and here we are today things are looking a little bit bleak when we're looking at futures here this morning before the market actually opened it did look like a little bit of recovery if we look at today's candle particularly we can see that we have right there is a little doji candle which basically represents somewhat of a pause with regards to market action you know we we may go up from here we may slide back down and test this little support level right here it does represent a pause and if you look at friday's candle this is a this is actually a a a candle that uh that represents potential weakness and sometimes referred to as a as a hanging man candle which indicates potential weakness and perhaps a move to the downside but the confirmation that hanging man is when we actually have a close below the body we got that closed below the body here today so from a a candlestick technical analysis standpoint it looks like we have a target here to the downside that's becoming a little bit more relevant with today's price action and let's just see what that point is we'll look at that over on the left hand side looks like the points on the on the spx it takes that would take us down to about 37 62 82 so overall the trend is up so we're not suggesting that the trend is over but based on the last two candlesticks right here we could have a movement down to this 3762 possibly test that as support before moving up of course we could continue to move down from that it'll be interesting to see what happens going forward here as we're continuing to move on here let's just zoom back out here it's one of the things we'll look at today in in looking at looking at some potential positions looking how our current positions are currently doing is we'll look at the current run of the market the current run of the market we can grab a channel tool right here and i can just come across these tops right here like that and come across these bottoms right here and you can see we have this channel we popped out of it a couple times popped down below it but we've been in a fairly nice channel it looks like that channel began on 11 9. so we'll do some measurements looking for sectors that have been strong during this move to the upside look for sectors that have been weak during that move to the upside that may come into play if we're looking to add additional positions to our portfolio when we take a look at our allocations we'll look at that but while we're here on the chart let's let's see what kind of time frame we have here between today and when we started right here when you know actually actually we we we could say we popped up here and started here so let's count the number of trading days from this point here to this point right here and to do that we got our channel two going here so we just want to point it over the current day right here click it and then move over here to where we came up there we hit the top part of that channel and that's 43 bars so we'll use that as as what's called a look back value when we're analyzing some of the some of the different sectors as far as as far as what could be going on with regards to those i'm gonna get some more real estate down there at the bottom of our chart there we go no but for now let's let's take a look at our allocations and see how those are doing that might give us an idea of where we want to look for potential stocks we want to look for growth we're going to look for all for income do we want to look at alternative investments and the like and let's pull this up this is our spreadsheet maybe you're familiar with this and before i look at that though let's come back over here to our slides here for just a second just kind of give you an idea of how we how we came up with this okay here's a here's a an allocation based on life stages and what we've decided to do in here is we've decided to play the part of a young professional now if you're not a young professional that's fine i hope you feel free continuing to join us here the difference may be with with regards to the allocation may have as we get as we tend to get older and we tend to approach retirement we eventually retire we tend to get a little bit more conservative a little bit more conservative with regards to our exposure to stocks relative to other investments like bonds treasury bills and those types of things sort of give us a little bit more room with regards to stocks we've we've opted to go with the young professional with regards to the unprofessional we're taking it from the standpoint that this young professional is okay looking at the amount that they've allocated towards stocks and looking to put about 55 percent of that allocation right there into growth stocks and about 25 percent of that allocation right there into income stocks so girl stocks would be stocks that have a record of of capital growth in other words price primarily price growth they could be stocks that do pay dividends that's fine okay the primary focus would be would be the the potential for potent for continued capital appreciation in other words in other words price movement with regards to income stocks their their their dividends do do play a major part because we're looking for stocks that have cap consistency with regards to providing dividends or cash flow in the way in the way in the way of dividend yields and then we have 15 percent right here this is kind of a little bit more of an alternative investment area could be small cap sometimes referred to as penny stocks could be options could also be be hedges with regards to our portfolio so we'll take a look at these areas we'll first of all take a look to see how they're performing you know how's our performance have been going then we'll look to see how our allocation is would we currently be considered to be over allocated in any of these areas if so then we may want to look at possibly looking at some stocks that are strong in other words they've been there they're in a winning place and possibly move up move up some exits in relationship to that in order to lock in some of those gains create some additional cast capital looking potentially into some of these other areas right here now it's just given us some sample portfolio sample young professional and notice right here first of all we're looking at primarily stocks a little bit in bonds right here okay but primarily stocks okay and our risk tolerance would be considered to be relatively high and let's go back here and we'll sit right here okay okay so let's go back then over to the um over to our spreadsheet here this is the price we've been keeping we've been keeping this since july i was thinking last time maybe i wanted to start off new with this and look at it from the beginning of the year then after thinking about a little bit i thought maybe we'll use this as kind of a physical year we started this in in early july so perhaps we'll hang in here with this and do it for a year and then compare the performance with our portfolio here to the overall market looking at it looking at it from a physical year standpoint fiscal year means you basically choose from one month to one month as far as measuring your year so we'll go from from july to july here for with regards to our measurement let's start over here with the growth area because this is our greatest allocation and see if we can tone this up just a little bit make it a little bit bigger and come over here so we can see our stocks there's our stock so you can see in here the the the work we are fairly active in this area all these guys are in yellow right here these represent positions that we've entered and we have exited from in here we're playing the part of the investor that's okay exiting a stock when it shows some weakness for example if we have a stock that maybe has gone something like this and it comes down like this and breaks down a support level right here we're okay taking that exit and one of the reasons we're okay with taking that exit is we're okay taking this loss you know this is going to be a loss from the high right there we're okay taking that loss because we don't want to continue to lose so we're okay taking a loss but we're not okay continuing to lose now there will be situations where we take an exit right here the stock will immediately rebound and get back up here that's sometimes referred to as getting whipsawed we realize that that that will occur on on some of our trades we're also okay we're also okay re-entering a stock we may look to do that today you can see here this is our first trade on apple we entered apple here's a second trade on apple right here and we're currently in apples we've moved in and out in and out of apple as it has had its ups and downs right now it looks looks like we're a little bit shy here we're currently only in three positions right here looks like we have a taiwan semiconductor we have vrsk we have scg vs8 vsh and apple in there so we've got one two three four five positions currently if you take into considerations all of our trading right here we currently have a a a profit loss here of 31.64 this includes positions that we've exited as well as positions that we're currently in our current allocation on this this is our this we've we've set aside our greatest amount for allocation our current allocation is about 149 000 but our allocation target with the growth that's occurred in our portfolio is sitting at about 245 000 so we have lots of room here to add to our growth area right here we'll come down let's come down here and look at our income area right here there's our income area this this is act this is actually a place where we sort of focused on last time to build this out it looks like we had we we added two positions as part of our session i believe last time one was p p b c t the other was one was prudential here and i went in and i updated the prices for these this morning it looks like pb pbct looks like we're currently where the price was at a little bit earlier today we're currently at a pro we currently have some profit in there so on prudential we currently have some profit here keep in mind the primary characteristic of these is dividend yield then i also have a position here in t a t i don't know that we put that in as part of our session last week or not i don't believe we did i hope to check to see how that how that filtered into this account that that is currently showing a loss though i lost their 435 dollars overall in with regards to our income area we currently have a appeal again this is going back to july we currently have a an overall pl percentage of 18 and a half percent this doesn't necessarily include all of the dividends periodically i'll go in here and update these for dividends basically what i do when the company pays a dividend i decrease the amount of our cost that's how dividends are reflected i'll come in here decrease the amount of the cost then i'll put a note in here that's why you see these red arrows here okay i put a little red arrow there saying okay this is our original cost but we decreased the cost because we received dividends that gives us a more accurate rendition here with regards to our p l percentage how we doing with regards to our allocation looks like we're doing pretty good here we've allocated 90 000 our allocation target is 111 000 so we could add another 20 000 but but we're but we're doing we we're about we are fairly close here maybe we could pick up one or two additional stocks in this area coming down to the more aggressive area this is our most aggressive area it's also our smallest allocation we set aside about 15 percent for this area these stocks do do jump around quite a bit currently we're in clct rnwk and chs how are these guys doing it looks like clct we currently have a profit there of about 3 700 rnwk profit about 645 chs this was a momentum trade and currently we're getting stung on this we're currently down on this one about 1650.

we want to double check on some of these to make sure that we have stop losses in place for example on chs because if we're starting to lose money again we're okay you know we're okay taking a loss here but we don't want to continue to take a loss which could which could come into play if we don't have a stop loss set on that so we'll take a look at that as well as see if we've got some as well as well to check some of our other positions for stop losses so let's go ahead and do that i'm going to shift gears here and we'll come back over to the thinkorswim platform right here i'm going to open up our i'm going to come over here and managing a self-directed portfolio let's come up here to monitor and we'll come over here to activity and positions hopefully this will populate i know some some of you may have noticed that the thinkorswim's been a little bit slow here today we want to see so chs we do have a stop loss on that so we're okay on that these two new positions that we entered in last week i don't currently have a stop-loss on that i believe that's because we put in contingent orders for those i think that we had in order to go in and take positions on those in the event that it was moving out so what let's go ahead and we'll manage our risk on those and put in a stop loss on a couple of those and we'll look at perhaps adding some additional positions in the in the growth area and so come in here and let's first of all pull up the chart here for pbct come in here and mower info come over here to tos charts and click on that and we really only need to be looking at one of these so let's come here and do right click on one of these guys and let's do maximize and we really don't need the yield i think we use that yield last session or a session before that what we want down here for today is just the average true range that'll help us determine where we want to set our stop loss in here come up here to studies and edit studies and rather than historical yield let's go with average true range and it looks like we've got you know what i'm going to make this average true range just so we can see a little bit better i wanted that to be a little bit brighter come here to studies and choose edit studies here we have average true range i'm going to click on the gear right here this will allow us to increase the width of our lines right here is a width command i'm going to say 3. i'm also going to make the color a little bit lighter on our black background right here so click on color we'll go with a lighter yellow we apply and we'll say okay okay so what we want to look for here is we want to look to see where our stop loss would be in relationship to support now it's interesting that we do have an earnings announcement coming up here don't we now the the um the challenge with an earnings announcement is a stop-loss really doesn't protect you over an earnings announcement so we do want to remember that okay if the stock gaps way to the downside in other words if it if we come together this earnings announcement day and we're trading right here and the stock gaps all the way down here because of the gap that occurred we're going to get filled on our stop down here rather than where we set it which could be somewhere in this area right here so in setting our stop we do want to keep that in mind with regards to that earnings announcement there's some other things we could do to hedge to hedge for that okay but we just want to keep that in mind so where's our support level well as the stock's been moving up here it's broken above some previous resistance levels so we want to identify the highest resistance level that the stock is broken above and it looks like it's going to be this point right here we could go back further in time we'd like to be a little bit more relevant to current price action so i'm going to come down here where we have our drawing tools i'm going to change my drawing tool right here to a price level tool and i'm just going to bring that across that top right there and then i'm going to edit properties and move what we're seeing rather than have the price on the right there i'm going to move it over here to the left so that we can see it okay so it's 1361. so what we've primarily been doing in here is we've used a stop loss of 80 percent of the average true range below the support level and we're currently at 1361 and the current the current level of the current level of the atr is 0.433 now some of you

sometimes have the question of what is the atr the av the atr is the average true range and this gives us a numerical value of the range that the stock has tended to trade in on a day by day basis over the last 14 days and it does include gaps so it looks at the high and the low for each trading day taking into consideration gaps and it gives us a number of the average of that for the last 14 trading days so by using this and setting our stop loss it makes our stop loss sensitive to the price of the individual security so i'm just going to pull up a calculator here here's our average true range right here a point 3.43 i'm just going to say 0.4 0.44 i'm i'm basically going to round it up one okay 0.44 i'm going to times that by

0.8 that's 0.352 and i want to find that i'm going to i'm going to find the difference between that and our support level to know where to set our stop loss minus 13.61 means we're going to put our stop loss in at 13.26 so now that we have that then we can come over here to where we had our positions monitor and we'll come right here to pbct i'm going to do a right click and i'm going to choose create closing order cell and the order that comes up i'm going to change that to a stop order from a limit to a stop and we're going to set our stop price at 13.26 i'll do a confirm and send and then we want to do the same thing here then for pru prudential come up here and let's find prudential p-r-u it looks like we've identified our support level for prudential at 78.61

our average true range is is 2.21 cents so let's bring back our calculator here and we'll take our average true range of two dollars and 21 cents we're going to use 80 of that now some of you may say why 80 percent why not a whole average true range why not half of an average true range what's the best percentage of the average true range to use the answer is not here okay the answer will be in your trading journal so look at your trading journal and do do some paper trades in your and do some paper trades in your trading journal kind of get an idea of how these average true range are working for you and it may very well be that the one and a half average two ranges is going to work out better for you because of the nature of the stocks you trade we're using we're using eighty percent of an average range is somewhat of an arbitrary number but it's very beneficial to have a trading journal so you can reflect back and say okay how many of these things did i get whipsawed in other words i got stopped out i wish i would have stayed in or how many of these things it took too long and i took too much of a loss and basically you're you're going to have a mix a mix of those and it's going to be i i i've never known anybody to find the perfect so to speak percentage of average to range but you can help narrow it down to what can be most effective for you but we use 80 percent in here so we've got 2.21 i'm going to times that by 0.8 i put this at 1.76 this is 178.61 so we want to find the difference between that and 78 dollars and 61 cents that's telling me we want to set our stop loss at 76.84 76.85 right in that area so we'll come

back over here to our monitor page and we'll find credential right here do a right click we'll choose create closing order we'll choose cell and we'll change this order to a stop oh you know i'm going to need to check i don't know if i set that other one until good till cancel i better double check that again we want to set this at 76.84 right there good to cancel now the good till cancel means that it means that we put it in there to stay in there until we cancel it you want to check with your broker because they actually don't stand there indefinitely you know it's my understanding it's basically about four weeks in case you want to check with your broker to say hey you know how long is that going to stay in there do i need to refresh it and those types of things we'll go with this do a confirm it's going to the right account once you send let's double check on our pbct yeah that's a day order we want that to be good till cancel let's come in here and choose cancel replace i don't know if it'll let us change the time here let's see until cancel can we do that looks like so far that looks like we're good to go so we canceled the one and it should be replaced by the other one let's just double check that make sure yep there we are now we have both of those get to cancel okay so what do we want to do then with regards to finding some growth stocks let's first of all oof i didn't want to see that but i'm seeing it first all we typically want to do is we want to look at our strongest percentage performers now some of you may may have seen this going on here today thinkorswim's had a little bit of trouble with their servers so some of these studies have been oh you know what i shouldn't have been saying that about thinkorswim swim snicker swim forgive me i shouldn't have i shouldn't have judged you because this is actually the call we're looking for we do have our percent change numbers just they have been a little bit slow the reason we don't have an ask here is because these these guys the indexes don't trade in fact let's just get that off of there so it's not causing confusion there we go okay so this is a this is a watch list of sectors that make up the s p 500 i'm going to come over here i've added a percent change column so first of all where did we get the watch list well if you if you pull up a watch this and come up here you come down here to public find s p 500 sector indices and that's it i'm not going to load it up again because it will take a long time for this to load but that's where you get it where do you get the percent change once you have your watch list you do right click on symbol to do choose customize then in the box here that's the name of the of the study we wanted it's it's not a custom study now sometimes i share scripts and stuff this isn't a script this is one that's going to be there on your platform you can tell that because you have this closed padlock right here just come in here and type in percent and then maybe a c and there you go you can either type it in you scroll down to it highlight it click on that item and then click on ok and you'll have it i'm not going to do it here because i already have it and what's what is this measuring this is measuring the percent change remember we were talking about this earlier it's measuring the percent change on the s p 500 oops what was that spacex or something this is measuring the percent change on the s p 500 from this point here this point here so when looking for growth stocks would like to would like to take a look at some of the stocks that are currently growing some of the strongest growing stocks we do want to keep in mind that with the market going like this a lot of these stocks are going to be being overbought areas you know if you look at the range they tend to trade in and this is sort of a normal range some of these stocks are going to be way up here which means what they could be right for move to the downside so in taking positions on these sometimes we'll actually be will be will be a little bit cautious that we want to give them some room but if they do start to move down potentially if the market starts to move down what's what's been occurring over the last three the last three to four years is the stocks that have been the strongest to the upside take the greatest hit to the downside so we may not we may not go with the with the absolute strongest sector we may look for something maybe in the top three or four and something that perhaps is perhaps is having a good percentage move here today in fact let's go ahead and add a percentage column here this one usually doesn't take any time to load maybe today it will i hope not but we'll go ahead and add that we've got a percentage move here so i'm going to sort by our custom percent change that is set for the days here once you have it over here how do you set it just do a right click on it choose customize you have it over here and then right here's our percent change just scroll over to the right click on the little arrow right here try that again oh you're kidding me oh that's painful that is so painful guys i inadvertently clicked something wrong and it went away well with the market close maybe the servers will give us a break here and it won't take too long but once you have it over here come over here and just click right here in our environment here get somebody and you want to set this for the number of days so this is going to want to be 43 not 453 just 43. and then say okay hey you know what when the market's closed it actually loaded up pretty quick it's not really where i want it let's move it over rather than have it right there let's put description above it particularly since it's populated by the way if you do have a problem with something loading and you're wondering if it works wait till the market closes and then load it up because there's a lot a lot of the pressure comes off the servers they tend to perform better so let's sort this then bring the highest performers up to the top so what have we got we've got energy at the very top 45 percent energy the sector's up 45 on energy when we have financials not too bad of 24 financials then we have materials industrials we have health care and then we come down here to some of these other ones so we're going to be okay looking at looking at some of these okay in fact i'm just going to make a little note here energy energy financials materials industrials looks like healthcare's had nice little it looks like energy has had a nice move but healthcare has had a nice little move here today so let's also put healthcare in there we could maybe have some stocks that are bouncing there on healthcare and one of the things about maybe considering healthcare if we're getting a bounce here you know healthcare isn't healthcare may not as be as overbought as some of these other ones so once we once we know the sectors to kind of zero in and look for then then we can pull up a list of the s p 500 which we have right here and we can look at another factor here now there's you know there's there are three there are different ways to approach looking for growth stocks and in here we primarily use three methods okay and the last time we were looking at growth stocks i believe we did it based on a scan and looking looking for stocks that have high price multiples okay in fact let's just narrow it down to two methods all right we're looking for girl stocks in here we primarily use two methods run a scan that looks for high p e ratios the stock has a high p e ratio and the expectation is for is for is for earnings to grow that's the expectation the reason has those expectations well you can look at you can look under the hood look for more details but it does have that expectation so from a growth perspective it's sometimes it's beneficial look for stocks that already have high pes because their expectations therefore to grow then maybe look look to see what analysts are suggesting about them now another thing another way to approach it though is to look for stocks that have a history of earnings per share growth and this is where this custom column comes in this custom column is looking for stocks that have a history of earnings per share growth i'll open it up here for a second i think it's looking at the last three years of earnings per share growth of at least five percent the reason we're looking at that is because earnings per share growth fosters price growth now if the earnings per share are moving up the investors become more interested in stock and they tend to increase the demand for the stock hence pushing the price up you can see some we have some some in here and energy that meet the qualification here for earnings for share growth let me just double check and see what this custom column is looking for here i can come in here for just a second don't get freaked out when you see this all right thanks for share growth at least five percent going back three years i believe yep it's three years okay this is this is earnings for share growth going back going back three years with at least five percent and we want to sort by sector okay so let's take a look at some of these so we're going to we're going to kind of cut to the chase and we're going to we're going to look for so we know energy has been strong we know that these stocks have a a relatively strong history of earnings per share growth at least five percent over the last three years i also want to take a look to see what analysts are saying okay so we'll come up here and we'll go to the analyze and we'll go to fundamentals and we'll tie this fundamentals area into our watch list by giving it by giving the link the same color so i come down here and i click on fti right here and also make this red okay so these are tied together now the watch list is read the fundamentals page is read analyze fundamentals page is read so when i make a change here it should automatically populate it does so what would what would we like to see here with regards to analysts well we're primarily interested in the top three here the reason for that is the bottom one the market edge is primarily about technical analysis not really too much about the fundamentals these are a little bit more about the fundamentals do keep in mind that these are third party providers they're not they're not td ameritrade providers or anything like that these are third-party providers so we don't we don't guarantee them with regards to accuracy time or anything else okay but but they are here for your use i would like to see these three the the ideal situation from from an investor standpoint would be if all three of these were far over here to the right we have one or two then that that may be okay but let's come down and look at some of these that have earnings for share growth to see if we have a little bit more of a mix over here on the right you just pop um possibly some time to some time to populate and it wouldn't be surprising if we don't have any that are over there because energy has been kind of a fickle area and analysts and investors as well have been a little bit leery about energy recently because of how fickle it's been so we have some over there to the right but continue on hearing energy see what we got here it's kind of middle you know these these guys are saying hold here however this has dropped us into materials okay so we but actually materials was one of the areas we were okay looking at so i'm just going to note here l y b middle of the road all right let's see if we can do a little bit better than lyb we're here in emn yeah man you know make a note here on emn it's a little bit more positivity i guess you could say and material ce how about ce what do we look at here with ce i wouldn't say that quite out does does em with regards to what analysts are saying let's come down here to wrk and i'd say emn's still a little bit stronger with regards to what analysts are saying if we're looking at where they're at again you know the the analysis one consideration we don't have to go totally by atlas but we'll take it into consideration for this a few more of these and in the area that's hold we had a couple like that now we're into industrials how are industrials in our list up here industrials were in the top four so we got materials industrials and financials looking at industrials let's see we got here there's an industrial one right there by the way some of you may be saying okay that's kind of cool ken where do i get that column um you can i i think many of you probably already have it if you follow me on twitter then then you most likely already have it because i sent it out to folks okay if you want to contact me on twitter i'm more happy to send it out to you along with a little video that shows you how to how to install it fbhs doesn't look too bad let me note that one there fbhs then we want to go ahead and look at some charts here we'll take a look at one or two more our it's not necessarily that we want to find the best one here we just want kind of want to go through the process that we're using here to find some possibilities these are kind of slow populating let's come down here see if we can pick up a financial stock i've got some industrials here again there's a lot of industrial what i'd encourage all of you to do is just kind of take the same exercise and you see got a lot more here take a look at some of these other ones and you may see some that are that are that are all the way over to the right you know that's a possibility here's a healthcare one that's actually up today a little bit that may be something that isn't quite so overbought as possibly some other ones don't have too many folks following though let's come down here in the financial area see we've got here maybe we can pick up a financial one here to add to this area of our portfolio let's all note this one s t t now we we we we ident we use these to identify stocks to put on our radar but we as far as whether or not we enter now we're playing a part of the investor that's going to that's going to be determined by technicals a financial stock there it's looks like one of the stronger ones as far as what analysts are saying over here and one or two more of these and again it's it's not about finding the best one for our session here just kind of going through the steps here just you can get an idea of what you're what you're usually looking for okay so we've got some stocks here so now let's take a look at the technical analysis for these we know that we know that we're okay with regards to the sector we're okay with regards to the the sector that they're in the performance of the sector okay i'll say okay with regards to what analysts are saying let's take a look at some of the charts and let's start off here with lyb so it looks like a strong chart there right we've gone up we've recently broken above this resistance level right here so a nice breakout actually pulling back and starting to bounce so i'll put a star by that one as far as there would be some justification look at entering this stock now rather than put in a contingent order e-m-n and we'll look at that a little bit more detail emn same kind of thing here on emn right humans actually come right down to the support level let's move this over to the left on these folks let's make that our default okay right down the 104 broke above it came down now it's bouncing off of it so let's put a star there by emn and we use those as our two material ones let's look at our two financial ones one was stt stt by you know looks like we got a lot of stocks sort of filling the same thing where we we broke above resistance we've come back we test now we're starting to bounce and head to the upside so stt looks like it's a pullback and a bounce that's actually a bull flag bounce right there so put a star right there and then the last one here is gs your gs same kind of boy strong movement here a little bit of a pause and notice we've got a lot of earnings announcements i was looking at these and most of them have earnings so when these earnings come up we may we in our in our future session we may look at putting on some things we can do to hedge with regards to earnings there's something called a caller you can put on to give yourself a little bit of a of a hedge over over that earnings announcement when you have stocks that are kind of more geared more geared towards growth though you know sometimes you'll just let them you know sometimes you let them go you but but you always want to have some kind of a stop-loss in there but you want to be a little bit limber with regards to what happens if you get stopped on earnings because a lot of times the stock will will gap down maybe take a huge gap to the downside here just to just recover during the day so so it's always a good idea to kind of monitor what your stops are doing over over an earnings announcement look at those i think our strongest one was was goldman was was gs right here okay so what was our what was our overall allocation we could allocate in this area again we're looking at an allocation here in the growth area 149 we go up to 2. that's almost 100 000 isn't it so let's do why don't we go why don't we go 20 we'll go 25 000 on goldman we'll go 25 000 on stt and we'll go 25 000 on emn now when again folks we're just we're just going through the process here we're talking about the technicals we're not making like recommendations or endorsements or anything like that coming over here then oops looks like we're getting a little bit tight on time aren't we i'm going to put in the orders all right and then we'll take care of the stop losses after we see if we get filled on the orders when we put in our orders on here we want to catch these going up so even though we have some strength technically we still want them to be going up as we enter in so goldman sachs here is it closed here today at 293.83 let's say we're okay entering in as long as we're at 293 91 okay it's a little bit of a contingency but not too much i'm going to do right click on the chart here i'm going to choose buy right here i'm going to choose edit here we want to determine how many shares so we're okay doing 25 000 worth of these guys so we've got 25 000 and divide that by let's just say 294 bucks would be 85 shares knock this down to 85 shares and i'm going to make it a stop limit buy order because if this thing opens up and it's gapped down we're not interested in it right it close at 293 you know i'm thinking why don't we just make it 290 401 i'm just yeah let's go 290 401 it's such a high priced stock 29401 is going to be our software 2941 or higher than we want to take ownership of it we're only willing to pay up to what um what's moving up there fast let's say we're okay paying up to about i'll leave it at 297.97 i'm okay with that we'll play the part of the investor that's okay with that we'll just leave it in here as a day order we'll do a confirm managing a self-tracking portfolio we'll go ahead and send that in okay then our other one here was stt and stt pull back and about we closed here today we closed at 78 14. so let's

say we need to be at 78 21 if we're at 78 21 tomorrow in other words we're we're engaging and moving up then we're okay putting in an order on this one we do right click on the chart here and we'll come down here and we'll choose buy i'm going to choose edit and what are we looking at here 78 21 let's go with let's go with 20 25 000. divided by 79 equals let's just do 300 shares that's 316. we'll just make it an even 300. 300 i'm going to change our order here from a limit to a stop limit and we're going to say the price needs to be at 70 78 21.

and then we're just moving up now just because it's moving up doesn't guarantee it's going to continue to move up we realize that so it needs to be at 78.21 if it is we're willing we want to buy it but we're only willing to pay 79 or more we'll do a confirm of that and we'll go ahead and send that one in then last but not least on our menu right here today is going to be e m n nice little bounce layer off that support level it's currently trading at 107 17. it's basically we pretty we close pretty pretty close to the high for today let's go let's go with 107.25 okay so i'm going to right click here i'm going to choose buy i'm going to choose edit order we want to determine our quantity we're okay with picking up 25 000. divide that by let's go with 108

so 231 shares let's just let's just do 200 shares we'll make it an even 200 here okay we'll make this a stop limit buy order and we're going to say okay we need to be at 107.21 if we're 107.21 then we're able to pay up to 108 for the stock and we'll do a confirm and send on that one so confirm and send and it's off all right folks well pretty much out of time here for today so let's go ahead and wrap everything up here in fact i think we went a little bit over time so what are we talking about here today well we did an overview of the market uh we looked at our portfolio kind of looked at profit loss how we've been doing we reviewed our existing positions on our allocations we entered in some paper trades based on our allocations we saw some room in the growth here and we decided to to to do some to enter in on the growth here and we looked for sectors that were strong within those sectors we looked for for stocks that had a strong history of earnings per share growth then we also look to see what analysts are currently saying about them alrighty so with that then let's go ahead and wrap everything up here for today again folks just reminded that in order to demonstrate the functionality of the platform we need to use actual civil server td ameritrade does not make recommendations or determine the suitability of any security or strategy for individual traders any investment decision you make in your self-directed account is solely your responsibility thanks everybody for joining us here for managing a self-directed portfolio i hope you have a fantastic evening and rest of your week best of success you're investing and hope to see you next time also thanks to cameron may over there in the chat window addressing questions appreciate uh cameron cameron on all the all the input that he's provided you over there just to remind you to follow cameron on twitter at cmay underscore tda you can follow me on twitter as well bye everybody thanks again and we'll catch you later you

2021-01-19 09:55

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