In this week’s webinar, “Building Conviction: The Fundamental Story,” Product Coach Scott Lehtonen covered researching the fundamentals and technicals of a stock to build conviction. Building conviction could mean the difference between holding onto a stock for its longer run and selling too early.

Stocks don’t go up forever, and even the strongest stocks will pull back to an area of support eventually. This is where conviction comes into play. When you have conviction, it becomes easier to not overreact and close a position early during a normal pullback.

So, how can you build conviction? Check the fundamentals, technicals, and the general market. For fundamentals, check for earnings growth/stability and sales growth and the story. For technicals, check to see if the stock is accumulating, outperforming and/or coming out of a base. Also since three out of four stocks follow the general market, understanding whether the market is in an uptrend or a correction is imperative.


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Best returns,



The MarketSmith Team