One Thing Top Stocks Have in Common

By Jason McIntosh, Creator Motion Trader 

Drumroll, please…

And the winner, of the ASX 300’s best stock for 2018/19, is…

Jumbo Interactive Ltd [ASX:JIN], with a gain of 303%.

For many people, Jumbo is a mystery. And that’s often the case. Most people seem to find out where the money was made, not where it potentially could be made.

But it doesn’t need to be this way...

You see, rising stocks leave a trail in the form of a price trend. This helps you spot them earlier. It’s a bit like a vapor trail that a distant jetliner leaves in the sky.

The key is to learn strategies to identify them. While they may seem obvious in hindsight, many people never get close to buying the likes of Jumbo.

Last financial year's top stocks say a lot about how the biggest trends develop. And this helps me develop strategies to trade them.

Some of the standouts include..

Polynova [PNV] +187%, Nearmap [NEA] +233%, Mount Gibson Iron [MGX] + 134%, Nanosonics [NAN] +77%, and Clinuvel Pharma [CUV] +205%.

These companies aren’t exactly household names. I’ll bet most traders knew little about them a year ago (or even now!).

So how do you identify this type of stock earlier?

Well, it’s rather straightforward. To be one of the year’s best performing stocks, the share price needs to rise. This is the one common factor for all the leading stocks.

And Motion Trader is watching. Its algorithms scan the market daily. You could say it’s a motion detector — a stock can’t trade higher without tripping the sensors.

Now, here’s the interesting thing…

All of the stocks you saw above are in Motion Trader‘s portfolios.

That’s right, the system identified each of them at various stages during the financial year (or earlier).

So how did it do this?

Well, let me start by staying there’s no magic formula or crystal ball.

Motion Trader got these results by following a straightforward process… a process you could use yourself.

Check this out:

You’re looking at the share price of Jumbo Interactive — the year’s best performing stock. Motion Trader’s algorithms first identified it in November 2015.

Now, have a look at the box in the top corner...

That’s the 2018/19 financial year. The trade was already up by 371% at the start of the period. This wasn’t your classic “down and out” bargain.

Many people avoid buying after a strong move. And those with a holding often sell. They reason that a good run must be nearing the end.

Their overriding concern is to sell before the top.

But this is often a mistake.

You see, strength is positive. It’s a good indicator that a trend will continue.

And some trends — like this one — can last for a very long time.

Here’s what the trade looks like up close:

Motion Trader’s hypothetical entry was $1.06 in November 2015. As the service opened to the public in early 2019, I’m showing you an entry from back-testing.

But this isn’t all theory…

I bought shares for my own portfolio at $2.81 in October 2017. During the 2019/20 financial year, the value of my holding rose by 303%.

JIN has produced many possible entry points since 2015. The buy trigger on each occasion was a new high in the share price.

This is a trend that you could be on.

I often hear people talk about “buy low, sell high”. They’ll say you should never buy a stock after a strong run. Many would have said that JIN was due for a fall.

But these people miss the point.

You see, strength indicates that buyers are paying up to own the stock.

The path of least resistance is up. Buying into this momentum can put the odds of success in your favour.

While the entry for JIN was good, the key to this trade is the exit strategy. This is what makes a big gain possible.

And it’s one of the most important lessons I can give you.

Look closely at the red line below the share price. This is the trades calculated trailing stop (or exit level), and it could turn your entries into a lot of money.

If you'd like to learn more, then be my guest at a FREE online training event

I’ll be hosting a unique skills accelerator class. It will explain the strategies I use to identify trends like Jumbo Interactive. And I’ll show you how to use them yourself.

The truth is that no one knows which stocks will top the ASX in 2019/20. Chances are there will be plenty of names that few people recognise today.

But if you know the right strategies...

Then you could be one the savvy few who get in early.

Save your virtual seat today. It could change the way you trade forever.

Register Now

All the best,

P.S. I wish this sort of training was available when I was starting out. It's the perfect way to leverage your time and fast track your learning. If you'd like to join me, click here. 

The material in this message is general in nature. It does not constitute personal investment advice or personal trading advice. Any advice provided is general advice only and does not take into account an individual’s risk profile or financial situation. Trading involves the risk of loss as well as the potential of profit. You should seek independent financial advice in deciding if trading is appropriate for you. As always, past performance is not indicative of future performance. Back-testing is hypothetical has has limitations. For example, a stock's liquidity could effect results in real-time. Unlike actual an performance record, simulated results may not represent actual trading. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Please click here for our Financial Services Guide. Jason McIntosh is an Authorised Representative (AR No. 1274211) and Motion Trader Pty Ltd is a Corporate Authorised Representative (CAR No. 1274210) of Shartru Wealth Management Pty Ltd, AFSL 422409. Sent by Jason McIntosh, PO Box 5191 Turramurra, NSW 2074  This e-mail has been sent to you because you signed-up for Motion Trader updates at some point in the past. If you do not want to receive such e-mails in the future you can unsubscribe by clicking this link: unsubscribe below.