Learn to Soar with the EAGLE Stock Picking System

I have developed a stock-picking system over the years called EAGLE. This system works seamlessly for both swing trading and day trading. The EAGLE system has evolved from the teachings of legendary traders like O’Neil, Minervini, Darvas, Livermore, and Van Tharp. I’ve amassed knowledge from these great traders, various trading books, and numerous seminars.

One key takeaway from observing professional traders is that none try to be exact clones of each other. Each trader takes bits and pieces from different influences and eventually creates their own unique approach. They model success but don’t aim to be carbon copies. This insight was pivotal in developing the EAGLE system.

What Does EAGLE Stand For?

EAGLE is an acronym representing the five essential qualities of stocks that have made extraordinary runs of 500%, 1000%, or more in a short period. Stocks like Zoom, Teladoc, and Amazon have exhibited these qualities.

Here are the FIVE key components of the EAGLE system to help you pick winning stocks:

E = Extraordinary Earnings

The first E in EAGLE stands for extraordinary earnings, sales, and/or projections. I look for stocks with at least 25% or more growth quarter over quarter. If the growth is accelerating each quarter, that’s even better.

I also look at sales growth, aiming for 25% or more, quarter over quarter. The stock must have either extraordinary earnings or sales. If a stock lacks both but has off-the-charts projections, it piques my interest.

For example, biotech stocks often lack earnings or sales as they’re in developmental stages but can still have extraordinary runs due to their projections.

A = Aim

The A in EAGLE stands for aim. Aim for high probability, high reward, and low-risk setups. These setups often manifest in various base patterns on the chart, driven by market psychology.

By recognizing these patterns and understanding where they form relative to historical price action, you can capitalize on them tremendously. Whether you’re a swing trader or a day trader, this strategy is applicable.

I wait for price consolidations to tighten up, allowing me to enter trades with a close entry and exit point. The stop loss is crucial as it acts as the floor of your trade. A sturdy floor with multiple layers of support is essential to prevent unnecessary losses.

G = Growth

The G in EAGLE stands for growth. I look for stocks with something growing, such as the industry, a product, or a new sector. Stocks like Zoom, Teladoc, and Amazon saw their share prices soar due to their extraordinary growth.

L = Leadership

The L in EAGLE stands for leadership. I want stocks that are leaders in the market, indicated by strong relative strength versus the S&P 500. Additionally, I look for stocks that are leaders among their industry peers. I compare the stock’s performance to others in its group to ensure it’s a top performer.

E = Environment

The final E in EAGLE is the most crucial. It stands for the overall market environment. Trading with the market trend is vital. If the market is bullish, I buy stocks in an uptrend. If the market is bearish, I short stocks.

Trading with the market trend is like swimming with the current; it makes the process much easier compared to trading against the trend.

Start Soaring with EAGLE

The EAGLE system can help you pick winning stocks and achieve your trading goals. If you’d like me to dive deeper into this subject or if you have any questions, leave a comment below. For additional guidance, check out our research program which not only provides you with stocks fitting the EAGLE criteria, but also shares exactly when I’m buying and selling, and other educational tools. Start your free 2 week trial today. Click Here to get started.

Here’s the full video I made about How to Pick Winning Stocks