{"id":29860,"date":"2013-08-10T08:41:54","date_gmt":"2013-08-10T12:41:54","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=29860"},"modified":"2023-08-01T19:48:42","modified_gmt":"2023-08-01T23:48:42","slug":"what-is-a-growth-stock","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/what-is-a-growth-stock","title":{"rendered":"What is a Growth Stock?"},"content":{"rendered":"<p>This week I wrote a post <em><a href=\"http:\/\/www.smbtraining.com\/blog\/study-trading-not-markets-tsla\">Study Trading not Markets ($TSLA)<\/a>\u00a0<\/em>where I shared the power of studying trading patterns over stock fundamentals. After all I play the game of trading pro not economics professor or Uber-Confident Financial Media Entertainment Complex Guest. My job is to make excellent risk\/reward decisions with my firm&#8217;s money to which for some trades longer term company fundamentals may not be relevant.<\/p>\n<p>It is our job as pro traders\/investors to understand when fundamentals matter and when they don&#8217;t. There have been a lot of fundamentalites playing pro trader\/investor on the Financial Media Entertainment Complex of late with their big Short TSLA idea who are not pros at all. (And I bet you these guys stay at the Four Seasons and not a Holiday Inn.) I say again: GROWTH STOCKS DO NOT TRADE BASED ON FUNDAMENTALS. This prior post had an important impact on the trading\/investing of many given my inbox. There is one issue I should clarify. What is a growth stock?<\/p>\n<p>During a one day trading course in Asia, with students wanting to learn how to navigate US markets, I clarified the definition of a growth stock:<\/p>\n<div>\n<ul>\n<li>No ceiling on earnings<\/li>\n<li>Cocktail party chatter<\/li>\n<li>Buzz about the stock<\/li>\n<li>Hot stock<\/li>\n<li>Does not trade based on P\/E<\/li>\n<\/ul>\n<p>To make a growth stock trade\/investment consider:<\/p>\n<div><\/div>\n<ol>\n<li>It is really a Growth Stock?<\/li>\n<li>High Short interest of at least 20 percent<\/li>\n<li>2xs ATR of late<\/li>\n<li>Important Technical Level for Entry<\/li>\n<li>Little Technical Resistance Ahead<\/li>\n<li>Increasing Volume<\/li>\n<li>History of Explosive Upmoves<\/li>\n<li>R\/R of 10&#215;1 and Swing Trade it<\/li>\n<li>Pray for pundits on the Financial Media Entertainment Complex to shout it is overvalued<\/li>\n<\/ol>\n<\/div>\n<p>I hope that helps.<\/p>\n<p>You can be better tomorrow than you are today!<\/p>\n<p>Mike Bellafiore<\/p>\n<p><a href=\"http:\/\/www.amazon.com\/One-Good-Trade-Competitive-Proprietary\/dp\/0470529407\/ref=sr_1_1?s=books&amp;ie=UTF8&amp;qid=1375715301&amp;sr=1-1&amp;keywords=one+good+trade\"><em>One Good Trade<\/em><\/a><\/p>\n<p><a href=\"http:\/\/http:\/\/www.amazon.com\/PlayBook-Inside-Think-Professional-Trader\/dp\/0132937646\/ref=sr_1_2?s=books&amp;ie=UTF8&amp;qid=1375715301&amp;sr=1-2&amp;keywords=one+good+trade\"><em>The PlayBook<\/em><\/a><\/p>\n<p><a href=\"http:\/\/twitter.com\/mikebellafiore\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png\" alt=\"\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>no relevant positions<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This week I wrote a post Study Trading not Markets ($TSLA)\u00a0where I shared the power of studying trading patterns over stock fundamentals. After all I play the game of trading pro not economics professor or Uber-Confident Financial Media Entertainment Complex Guest. My job is to make excellent risk\/reward decisions with my firm&#8217;s money to which for some trades longer term &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/what-is-a-growth-stock\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[3281,1718,1905,1140],"class_list":["post-29860","post","type-post","status-publish","format-standard","hentry","category-mike-bellafiore-bellas-blogs","tag-growth-stock","tag-the-playbook","tag-trading-fundamentals","tag-tsla","no-post-thumbnail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is a Growth Stock? | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/what-is-a-growth-stock\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is a Growth Stock? | SMB Training\" \/>\n<meta property=\"og:description\" content=\"This week I wrote a post Study Trading not Markets ($TSLA)\u00a0where I shared the power of studying trading patterns over stock fundamentals. 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