Are you dissatisfied with the slow growing bonds or indices like NASDAQ or S&P?

But you also want to avoid the risk of trading with high leverage and crypto?

I got you.

Today, I will reveal my stock screening secret that has allowed me to pick high-growth stocks with returns ranging from 100% to 10 times over the past 10 years.

With this strategy, you will only invest in companies that are valuable and also owned by large institutions and banks.

The BEST part is: unlike day traders who have to spend their day monitoring screens, this strategy allows you to continue living your normal life with your loved ones and working your full-time job without worrying about your stock holdings.

Let’s get into it.

Stocks Screening Setup on TradingView

There are several attributes that can help you earn money in the stock market, but it all starts with choosing the right stock. If you can accurately identify stocks with high growth potential, you can make money quickly regardless of when you purchase them.

On the other hand, investing in stagnant stocks will limit your profits even if you’re the smartest technical trader.

To screen stocks, we will be using TradingView. Here’s how you can do it:

Step 1: Go to TradingView and open the Stock Screener 2.0 tab

Step 2: Copy the following setup

We will only select stocks from the US market, as it has proven to be the best performing market in the world based on historical data.

We will choose stocks with prices above $12, as stocks below this price level tend to be too volatile for retail traders.

Additionally, we will filter stocks with a market cap above $300 million. This ensures that we invest in companies with small to medium market caps, which have the highest growth potential.

Then​. from a technical standpoint, we want to filter stocks that are in phase 2 of the 4 stock cycle. This phase represents a period of significant price increase in a short period of time.

To filter stocks in this phase, we will select stocks with prices above the 50-day simple moving average (SMA), and with the 50-day SMA above the 150-day SMA, and the 150-day SMA above the 200-day SMA. This alignment indicates an ascending order of moving averages.

To ensure stocks have great momentum, we want the current price to be at least 25% higher than the 52-week all-time low and not lower than the 52-week all-time high by 25%.

Unfortunately, this filter cannot be applied in TradingView, so we will manually check each chart for this criterion.

Lastly, we will filter out stocks with an average volume lower than 50,000 shares per day and uncheck the Utility sector. As these stocks tend to be more expensive with a higher spread, and their growth is often low and highly manipulated.

After applying all these filters, we should be left with around 550–600 stocks.

Perform Technical Analysis on Each Stock

Now, it’s time to investigate each stock and create a watchlist of potential stocks.

Personally, I like to sort the stocks based on revenue or net income per employee, as it indicates the company’s margin efficiency. A higher net income per employee suggests that the company is resilient and not overly concerned about employment costs.

Additionally, a growth in revenue is a positive sign of a company in a high-growth stage. However, if the earnings per share (EPS) is significantly decreased, it might indicate that the stocks are overvalued.

Keep in mind that there is no one-size-fits-all rule for screening stocks. It may still be profitable to invest in overvalued companies, depending on your personal preference.

When analyzing each chart, focus on a few key factors. First, check if the 40-week SMA is flat or trending upward, as this indicates an uptrend.

Look for volatility contraction patterns and breakouts. Save the stocks that meet your criteria in your watchlist and revisit it daily to invest when they match your entry system.

Tools & Execution Advice

If you want a more powerful indicator tool for favorable entry and exit points, consider using TradeDots reversal indicator. This tool helps you catch market reversals based on historical price action analysis, giving you an advantage in buying before a breakout and exiting before a significant drawdown. Click the link here to try it out for free.

Remember, it’s important to limit your investments to 5–10 companies. The more diverse your portfolio, the harder it is to manage and analyze, which can negatively impact performance.

Additionally, you can conduct due diligence by researching the company’s shareholdings distribution. If the majority of shares are held by institutions, it may indicate easier manipulation but also significant growth potential.

Pay attention to the names of the holders and see if any reputable hedge funds and banks are among them, such as Millennium Fund or Renaissance Fund. This can be an indication of a potential 10x stock.

Bottom line

I hope this will serve as a guide to help you pick the next 10x stocks for your portfolio. Feel free to email us, support@tradedots.xyz for any further discussions or questions.

Remember, the market is always uncertain, so it’s crucial to have a risk management system in place.

In future content, we will discuss how to identify market tops and bottoms based on data and technical indicators. If you enjoy this type of content, please like and subscribe. See you in the next one.