Active-Stock Quality Screen
Filter for trend, quality, price, and movement before studying an entry
- Difficulty
- Easy
- Time to result
- ~days to results
- Steps
- 5
- Confidence
- 97%
The Active-Stock Quality Screen separates company selection from entry timing. Begin with business quality: prefer companies that are strong within their sector instead of speculative names chosen because they appear cheap. Review roughly a year of price history and require an uptrend rather than a prolonged decline. Apply a price floor to avoid penny stocks; Ijeoma says stocks below ten dollars are not her style. Then check whether the stock usually moves enough to serve the trading goal, using at least a dollar of daily movement as her practical threshold. Qualified companies enter a compact watch list that can be studied repeatedly. The mechanism avoids wasting analysis on weak or inert stocks while reducing the temptation to chase unfamiliar names whenever they become popular.
Origin
Teri Ijeoma explained the stock characteristics she uses after recounting a damaging Pandora trade that began with choosing the wrong company.
Core principles
- 01Trade strong companies rather than cheap speculation
- 02An established uptrend provides directional evidence
- 03Price alone does not make a stock attractive
- 04The stock must move enough to support the trader's goal
How to run it
- 1
Check sector quality
Ask whether the company is among the stronger operators in its sector. Compare it with credible competitors before accepting the name.
Pro tip A familiar brand is not automatically the sector leader.
Watch out Ignoring competitors can make a fading company look stronger than it is.
- 2
Confirm the trend
Review about one year of price history and look for a sustained uptrend. Reject names whose long-term direction conflicts with the intended trade.
Pro tip Assess the broad direction before searching for a precise entry.
Watch out A brief bounce does not erase a persistent decline.
- 3
Apply the price floor
Remove penny stocks and other very low-priced names from consideration. Ijeoma uses ten dollars as a practical minimum.
Pro tip Treat the threshold as a risk filter, not proof that every higher-priced stock is safe.
Watch out Low price per share does not mean low risk.
- 4
Measure useful movement
Check whether the stock typically moves enough each day to make the trading objective plausible. Ijeoma looks for movement of at least one dollar per day.
Pro tip Match movement to the actual position size and income goal.
Watch out More movement also means more risk and still requires position controls.
- 5
Build the watch list
Keep the companies that pass all filters in a small recurring watch list. Study the same qualified names instead of continually starting from zero.
Pro tip Familiarity with recurring price behaviour can improve preparation.
Watch out Re-screen periodically because company quality and trends can change.
In the wild
A trader finds a $6 stock that has appeared repeatedly on social media. The one-year chart is declining, the company trails several competitors, and its average daily movement is too small to support the trader's goal. Despite the low share price, it fails three filters and never reaches the entry-analysis stage.
→ The trader avoids spending time and risk budget on an unsuitable company.
Common mistakes
Confusing cheap with attractive
A low share price can hide weak quality, poor liquidity, and substantial downside.
Ignoring sector competitors
A company can look popular while stronger alternatives are taking its customers.
Choosing a stock that barely moves
Even a stable blue-chip company may not produce enough movement for a short-term trading goal.
Is it for you?
Best for
It is best for swing or day traders building a focused watch list of liquid, established companies.
Not ideal for
It is not ideal for value investors deliberately seeking distressed companies or long-term returns from low-volatility assets.
From the transcript
“i want it to be a company on an uptrend and i usually look over the last year”
“i don't like penny stocks anything less than ten dollars is usually not my thing”
“i'm still looking at companies that move at least a dollar a day because i'm trying to reach for a goal i need the stock…”
From the episode
Teri Ijeoma: Start Trading Today
Teri Ijeoma