This Stock Trader's 2,700% Return Secrets Will Shock You - Learn...
Rohan Das@rohaninvestor
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Mar 31, 2024
~3 min read
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This Stock Trader's 2,700% Return Secrets Will Shock You - Learn His 7 Criteria For Picking Momentum Stocks Now.
(Read on)
(Read on)
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(1) Eduardo Briceno is a successful stock trader who holds a degree in electrical engineering.
Started with $28,000 and turned it into over $800,000, according to statements viewed by Insider.
Started with $28,000 and turned it into over $800,000, according to statements viewed by Insider.
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(2) Briceno prefers to stick with small-cap, momentum stocks because they have fewer fundamentals that could impact price action.
Bigger companies are harder to trade because they are more impacted by valuations, market cycles, and institutional investors — variables.
Bigger companies are harder to trade because they are more impacted by valuations, market cycles, and institutional investors — variables.
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(3) Briceno's Stock Selection Criteria:
• Small capitalization stocks
• Increased trading volume (signals sudden attention)
• Minimum 20% price increase during after-hours and premarket, signaling momentum
• Scanner generates 20 to 50 stocks
• Small capitalization stocks
• Increased trading volume (signals sudden attention)
• Minimum 20% price increase during after-hours and premarket, signaling momentum
• Scanner generates 20 to 50 stocks
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(4) Briceno prefers stocks with a low level of institutional ownership, particularly in small caps.
Ownership of more than 50% reduces its attractiveness since it gives institutions more power over the share price.
Ownership of more than 50% reduces its attractiveness since it gives institutions more power over the share price.
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(5) Briceno avoids stocks with a float of less than one million shares.
Such stocks might become excessively volatile due to limited liquidity.
When liquidity is limited, it is more difficult to enter and exit a trades.
Such stocks might become excessively volatile due to limited liquidity.
When liquidity is limited, it is more difficult to enter and exit a trades.
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(6) Briceno follows one of the most crucial fundamental factors, stock dilutions.
When a company raises funds by selling more shares, the shareholders' ownership percentage of the company decreases.
In this case, he avoids long positions but may consider shorting the stock.
When a company raises funds by selling more shares, the shareholders' ownership percentage of the company decreases.
In this case, he avoids long positions but may consider shorting the stock.
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(7) Stocks in hot sectors are the top choice for Briceno's strategy as they often show high volatility and are easily traded due to ample liquidity.
For instance, during the pandemic, recovery-related stocks doubled, and oil & gas stocks rose amid Russia's invasion of Ukraine.
For instance, during the pandemic, recovery-related stocks doubled, and oil & gas stocks rose amid Russia's invasion of Ukraine.
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(8) Stocks with strong catalysts (e.g., govt. contracts, FDA approval) belong in watchlists.
Beware of 'chat pumps' - stocks promoted online without real catalysts; they often lead to pump and dumps.
Focus on fundamentals, not hype.
Beware of 'chat pumps' - stocks promoted online without real catalysts; they often lead to pump and dumps.
Focus on fundamentals, not hype.
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(9) Eduardo Briceno says that trading is a game of probabilities.
Only act when you have an edge to increase your chances of winning; Otherwise, the market will always have an edge over you.
Only act when you have an edge to increase your chances of winning; Otherwise, the market will always have an edge over you.
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(10) Briceno advises reviewing historical stock charts to identify potential bag holders—traders waiting to break even.
High volume during the last peak suggests many such holders, indicating resistance.
Avoid such stocks as they may face strong selling pressure.
High volume during the last peak suggests many such holders, indicating resistance.
Avoid such stocks as they may face strong selling pressure.
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(11) Briceno, despite adhering to his rules, doesn't always succeed in trades.
A stock could meet a few of his criteria but still fail.
Thus, he limits exposure to any single position, never allocating more than 2% of his total account value.
A stock could meet a few of his criteria but still fail.
Thus, he limits exposure to any single position, never allocating more than 2% of his total account value.
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(12) Briceno's advice to Investors:
- Begin with small investments
- Risk only a small portion of your money
- Maintain this approach until successful for several months
- Gradually increase risk as you gain confidence
- Begin with small investments
- Risk only a small portion of your money
- Maintain this approach until successful for several months
- Gradually increase risk as you gain confidence
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That's a wrap!
This is our #110 Thread, If you find it useful:
(1) Follow me @rohaninvestor for more such threads. I write a new thread every week simplifying trading/investing concepts.
(2) Bookmark this thread for future.
This is our #110 Thread, If you find it useful:
(1) Follow me @rohaninvestor for more such threads. I write a new thread every week simplifying trading/investing concepts.
(2) Bookmark this thread for future.