11Mon·

Selection criteria according to 4 phases for mid caps in the USA

First phase / Fundamental market screening for quality stocks

Market capitalization 2 to 10 billion dollars
Price above 10$ per share
Average daily trading volume over 200k
EPS growth over the last 5 years greater than 5%
Revenue growth over the last 5 years greater than 5%
ROI Return on investment above 5%
ROE Return on equity above 10%
Quick ratio over 1
Debt to equity below 1

This currently leaves 48 Companies that have cleared my first hurdle

Second phase / view charts on a weekly basis

Since I'm familiar with trend trading, I also try to trade these. What is important to me?

Recognizing trends on a weekly basis
Stocks that are on the move are put on an extra "waiting watchlist"
I only enter stocks during corrections
At least 30% performance to the last all-time high from the time of entry
Nice to have but not decisive --> The price is quoted above the EMA 200 (weekly basis)
Nice to have but I am not decisive --> Rising volume in recent months

Example screenshot from $APPF (+6.6%)

After screening with the eye, perhaps the following remained 15 stocks that are in correction in their current market phase.

Third phase / Include analyst ratings

I look at what the analysts say about the stocks
Stocks that are rated HOLD / SELL / STRONG SELL are immediately removed from the watchlist
BUY and STRONG BUY are then clearly the favorites
Here, however, we also look at how many analysts have given a rating --> If there are too few, it can distort the result

After the analyst ratings, approx. 12 shares remained

Phase four / Dealing with the company

This is the first time I look at what the company actually does.

How are they positioned.
What is their core competence?
Who are their competitors
Where do they operate
Who can I convince

And the most important... Which companies can I imagine will continue to grow in the future and remain on the market for as long as possible?

I am grateful for every exchange. If anyone has any ideas, additions, experiences or food for thought for me, please let me know.

--> The only thing I won't deviate from one hundred percent is the entry from the correction 😁

@Multibagger I hope I was able to give you an insight? There are of course a few more (interesting stocks for me) on the watchlist, but these are the ones that convinced me the most according to all my criteria. Let's take a look?

As I said, this is my first foray into the mid-cap sector.

Best regards

xxxMIRKOxxx

@xxxMIRKOxxx

11Mon·

Mid Caps

So far, I have invested exclusively in the universe of large caps. For me, this is and has always been a very calm type of investment, as it is not so easy to be surprised by extreme price fluctuations.

Yesterday, however, I added three mid caps to my portfolio for the first time and think that this could be a good addition to the portfolio. I am curious to see how these stocks will develop and how closely I will have to monitor them in order to be able to react to any strong price fluctuations.

The following stocks were added to the portfolio yesterday. All stocks were added with the same position size.

$APPF (+6.6%)

$CWAN

$LNTH (-0.45%)

As I tend to be a quiet trader and like to leave stocks longer, I am curious to see how I will continue with the mid caps in the future.

What are your experiences?

MidCaps vs LargeCaps 💹️☑️🤔

7 Comments

11Mon

Thank you for the detailed information. This leads me to conclude that you also tend to select them according to buy & hold, because otherwise the extensive evaluation of the long-term key figures would not be worthwhile.
In any case, I wish you every success with your new stocks

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xxxMIRKOxxx@xxxMIRKOxxx

11Mon

@Multibagger Yes, you're right.
Buy & Hold is where I feel at home. Then I say thank you and wish you every success on the big playing field of the stock market universe 🙏💯😃

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Max@Anakreon

5Mon

Which tool did you use to analyze this or where did you get the data from?
In your opinion, is it still worth getting into these positions or has the entry moment passed?

I am new to this business and am trying to familiarize myself with the analyses - hope the question is okay.

Kind regards

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xxxMIRKOxxx@xxxMIRKOxxx

5Mon

@Anakreon hi max, I do the fundamental screening with the "Agena Trader". This is a super powerful tool that I bought about 10 years ago. I also do the complete chart analysis with this program. In addition, I used to be most interested in pure chart technology and have always remained true to this approach. There are some great books or even a whole series of books by Michael Voigt. "The big book of market technology"

I can only recommend it very, very highly and it really opened my eyes and has also improved my trading extremely since then. As I said before, I am an absolute trend trader and always enter the market out of corrections. The charts are always moving and correcting.

A stock that is virtually at an all-time high will never be included in my portfolio. But of course there are different approaches that can also work well. These are the so-called momentum traders.

For me. At some point I discovered that the daily chart is simply too choppy for me personally. I really only look at the weekly charts almost exclusively. But with the powerful Tooll the argena Trader, it's really no problem at all to screen and scan the approx. 5000 us stocks that are currently available.

I then use the "Barchart" website to look at the analyst ratings.

In the end, I only have a few stocks left to trade.

Another new addition is that I have created a so-called "Gemm" on Google Gemini. I do this at the very end. If I perhaps only have three stocks left to choose from and can't decide very well which one to include. I add the three values to my portfolio and compare them with each other. Google's AI then spits out the best value for me again, so to speak. Where the AI thinks that this stock has the best potential to survive on the market in the next five years and perhaps even beat the competition.

I am absolutely not interested in a super fast performance, but in duplicable trading for the next few years to beat the market and at least always keep my performance above the s&p 500.

I manage to do this very well with my complete approach.

So let's go back to the tools
-agena Trader - the very first thing I do there is create a list to filter out fundamental key figures. Then I use it to look at the charts and I've now seen and read thousands of different charts, certainly 10,000.

This is followed by the analyst. Rating, which must always be at least 4 or higher. The highest value is 5, which I then do with Barchart.

And at the very end I add the AI.

I hope I've been able to help you a little and wish you every success on your journey.
I wouldn't get involved with all the gardens at the moment. One of the values no longer exists. It was taken over by another company. I got out with a 30% profit. A second stock. I don't know exactly which one I am now over 50% up on. But I wouldn't want to get back in there because it's already gone too far. And the last stock, AAPF, I'm down 30% and I wouldn't get back in at the moment either. I'll have to see how I continue to manage the trade, but as I'm currently performing very well, I'll leave it in and keep an eye on it. It is possible that I will also sell it in the near future.

I think I will focus more on the large caps. These are all companies with a market capitalization of over 10 billion. In any case, trading is calmer there and there are not so many fluctuations.

I hope I have been able to help you a little and wish you every success on your journey.

PS. Shares are the most beautiful asset class in the world 🍀😉

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Max@Anakreon

5Mon

@xxxMIRKOxxx Thank you very much for the detailed answer :) I will have a look at the books and the tool.

I also built a small/mid cap portfolio a few weeks ago - but via savings plans, as my capital is not yet that high. But maybe there are also intersections with your selection. Maybe my amateurish analysis wasn't so bad after all ;)

Aaon, arm holding, alzchem, celestica, federal signal, halozyme, kontron, littlefuse and black berry

I would like to hear your opinion on this and thank you very much for the kind wishes

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xxxMIRKOxxx@xxxMIRKOxxx

5Mon

@Anakreon Hi Max, unfortunately I can't make it. The book is definitely a revelation. Once you've read it, you'll be able to understand the charts much better. And all without any indicators or bells and whistles 🍀

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Max@Anakreon

5Mon

@xxxMIRKOxxx Thanks for the book tip. The madness. I am Philipp 😅

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