Stock Picking
Want to stop chasing trends and start spotting the stocks everyone will be scrambling to buy tomorrow? Here's how we uncover hidden gems before the crowd does—and so can you!
“If you don’t know who the sucker at the table is, it’s you.” – Warren Buffett
Capital moves like a relentless tide—those who follow it early reap the rewards. If you didn’t catch last weeks article, Riding Giant Waves…consider reading it first before moving on.
Seeing What Others Miss
If you want to make serious money in the stock market—the kind of money that turns dinner party whispers into wide-eyed stares—you need to see the game for what it is.
The stock market is a voting machine in the short run but a weighing machine in the long run, and right now, most people are too busy chasing today’s trend to realize where tomorrow’s capital is heading.
That’s where we come in.
The key to making five, ten, or even one hundred times your money isn’t a secret; it’s discipline.
You identify sectors poised for a capital influx, buy quality companies at a discount, and let time and institutional money do the rest.
By the time the retail crowd jumps in, you’re already well ahead—maybe even out entirely.
This isn’t about day trading. It’s not about getting rich quick.
It’s about playing the game the way it was meant to be played: with patience, insight, and a stomach made of iron
Step One: Follow the Money
Before we touch a single stock, we analyze where capital is flowing. What macroeconomic forces are at play? Which industries have been obliterated but are still fundamentally necessary? Where is sentiment at its absolute worst?
These are the places we start looking because they are the places where asymmetric opportunities hide.
Energy shortages, tariffs, supply chain bottlenecks, government subsidies, or even geopolitical shifts—these aren’t just headlines; they’re road signs pointing toward future investment flows.
So, how exactly can you spot these asymmetric opportunities before institutional capital floods in? And what's the method for choosing the right stocks within these promising sectors? Let’s dig deeper.
“The smart money is already sniffing around, waiting for the right entry. We aim to be there first.” - Chris MacIntosh
Step Two: Buy the Sector, Not Just the Stock
Once we’ve identified a sector primed for capital rotation, we don’t just pick one or two companies.
We build exposure across multiple stocks to reduce risk while maximizing gains.
The rising tide lifts all boats, and we want to own enough of them to capture the full move.
Five to ten stocks per sector, equally weighted—that’s the general rule.
This ensures we aren’t making a single bet but a diversified play within a promising industry. Think uranium, offshore oil, coal, Argentia, and many others.
If the sector moves, so do we.
Step Three: ETF or DIY?
For some, an exchange-traded fund (ETF) might seem like a clean solution.
But let’s be honest—most ETFs are garbage. They claim to track an industry but load up on nonsense to justify their existence.
We don’t want a uranium ETF that’s 30% utilities and cement companies. We want pure-play exposure to the best stocks within the theme.
If no ETF meets our criteria, we build our own basket. It’s more work, but it puts us in control. And if the work scares you, investing might not be for you.
Step Four: Screening for Winners
Now comes the real fun—finding the stocks themselves.
This isn’t about P/E ratios or dividend yields. We’re looking for financial strength, market cap positioning, and price action that tells a story.
Using a stock screener, like Trading View, we filter for companies in our chosen sector, ranking them by market cap.
The big players get the first look because they attract institutional capital when the tide turns.
But size alone isn’t enough—we need to check their balance sheets.
Companies loaded with debt can be value traps, so we favor those with manageable leverage and positive cash flow.
Financial Health Metrics To Look For:
Debt Levels – Minimal debt is preferred; if debt exists, it must be serviceable.
Price-to-Earnings Ratio (P/E Ratio) – Used to assess valuation relative to earnings.
Price-to-Book Ratio (P/B Ratio) – Helps determine if a stock is undervalued relative to assets.
Quick Ratio – Ensures companies have cash on hand to cover short-term obligations.
Long-Term Debt-to-Equity Ratio – Evaluates financial leverage and stability.
Dividend Yield – Can indicate financial strength and return potential.
Then, the charts.
We want stocks that have been crushed but have stopped falling.
Sideways price action is a gift because it tells us selling has dried up. The longer the base, the bigger the breakout.
Step Five: Building the Watchlist
After filtering by financial health and price structure, we compile a watchlist.
Stocks that check every box make the cut. Those that don’t? They get left behind.
If you need help valuing businesses, there are plenty of resources online.
We also recommend focusing on value investing principles rather than short-term technical tricks.
At the end of the day, a company’s job is to make money.
Your job is to buy them when no one else wants them and sell them when everyone does.
What’s Next?
Once you have your watchlist, the next step is capital allocation.
How much do we put into each name? How do we adjust as the trade progresses? We’ll tackle that next week unless you tap into the course below.
For now, understand this: the best opportunities are the ones no one wants today but will be screaming for tomorrow. The sooner you learn to see the game before it’s played, the sooner you’ll stop being the sucker at the table.
Let’s get to work.
We created an exclusive asymmetric investing video course behind the paywall, allowing you to follow along and screen for stocks just like we do.
Paid Subscribers can watch video #4 to see how we set up our stock screener.
Videos in this series Include:
Disclaimer: Not investing advice! This article is for educational purposes only. Seriously, we really do hope you become a better investor after reading our work. But always do your own due diligence and/or consult with a financial professional before making any investment. Capitalist Exploits reserves all rights to the content of this publication and related materials.