In this video you will learn all about Universe Lists!
PURPOSE: A Universe List filters the market down to the top 2-3% of stocks that fit a strict criteria.
WHY DO IT: Saves time and increases odds of success (this is true no matter what your strategy is)
OTHER BENEFITS:
- Know how the market is treating your system.
- Find pockets of strength w/in your system.
HOW TO BUILD IT:
- Know what you’re screening for and why. Have a method! Here’s mine:
- E = extraordinary earnings, sales, and/or projections
- A = aiming for high probability, high reward, low risk trades
- G = game changers and growth (includes growing fund ownership)
- L = leadership in the market, among peers, and in leading groups
- E = environment, trade with the market, not against it
- Build screens that fit your method.
- Add to and prune your Universe regularly. I do this weekly
BONUS: Watch the expansion/contraction of the list, as well as which groups are coming on or falling off.