In trading, stocks are often said to be backing and filling. Stocks run too far, usually too fast and sellers show up…even when the business shows no sign of slowing down. The stocks can spend months going sideways even down.
This happens in life as well. You work so hard to get ahead being an entrepreneur and something else comes up to slow your overall progress. You have to get all life’s ducks in a row to make a new assault on growth and progress.
In sports, I see it with my son Max. He swings as well as the rest of the kids. But his putting or strength might be keeping him back as he backs and fills. If he can keep up his tee to green game while improving his strength and putting he will break through to the next level.
Watching the markets all these years I have seen this pattern play out over and over.
It’s important as we work though this market correction to eyeball the companies and sectors emerge from their backing and filling the quickest. It’s why I scan so many momentum traders on StockTwits because they are my scouts. It’s also why I follow lists like 52 week highs on Sparkfin (my new app) and the SL50 list that Ivanhoff and I created.
My two eyes that are locked in the limit of 24 hour days can’t see everything but the tools are available to help me digest large quantities of info from a peloton of friends and curated lists keep me ready to deploy capital into stocks and markets that have the qualities I am looking for.
The routine keeps me focused on what matters in finding the next winners. I know I will still miss so many stocks/startups emerging from these patterns but it does not change the fact that I am constantly honing my process so that when I do decide to act the tea leaves are aligned well even if it’s been 6 months between trades/ investments.