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If you look for stocks that Wall Street isn’t focusing on, what factors do you consider when deciding to buy?

By Matt McCall

That’s a good question, and my answer is: It depends.

I’m not trying to be funny, so let me explain.

It all starts with what I sometimes refer to as the three-legged stool that incorporates macro and micro analysis. The big three are:

  • Fundamentals
  • Technical/Chart Analysis
  • Intangibles/Catalysts

I’ll be explaining much more about these in the coming days and weeks, but to really find the best NextGen stocks, I want to see strong fundamentals that show growth (among other things), a solid chart that indicates buyers are in control and intangibles to drive the stock higher. These can be everything from a sweeping theme (like the millennial boom we’ve been talking about) to a specific event to, quite honestly, gut feel sometimes.

Now, once I have my three-pronged analysis in place, the next step is determining whether I like a stock as a longer-term holding or a shorter-term trade. That’s where it depends.

For a long-term trade, I’m focusing more on things like the market trend, sector trend, theme and fundamentals, although I always consider the technicals.

For trading, I’m focusing more the shorter-term trend, key support and resistance levels, where the stock is relative to moving averages, what volume tells me and more.

That’s one of the beauties of the NextGen system. We not only look for stocks that Wall Street is ignoring, but we can also make money a variety of ways. I look forward to sharing more with you.

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