Comments are encouraged!
I've decided to reveal the EXACT parameters for one of the stock picking systems I developed and was using to make the recommendations (on Fidonet) that made a LOT of profit in Sep-Oct. Someone had better thank me... this system took MONTHS of programming and research, billions of calculations... and thousands of dollars in expenses to develop. Sine I'm using better systems I've developed for quicker turns for daytrading I'll share this info. Disclaimer: Everything
that follows this sentence is my opinion and may be worth exactly what you are paying for it... nothing!
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Watch the NASDAQ 4 letter stocks priced between about $8.00 and $15.00... when you find one that has over 600k vol. to 1.8 mil. (during on day's trading) and the price increased ...but not more than about 15% that day... check it's price from one month ago... if it has gown DOWN 15% to 30% from one month ago (to that day's OPENING price) then buy it. During the next 10 to 15 market days you'll have an chance to sell at an AVERAGE of 10% profit... based on the last 2 years of historical records. Dump any position that falls 5% - 8%. I can't tell you how to exit exactly at the top... but if you come within a few pecent you'll still make a handsome profit. You should find at least 2 stocks per week that meet these qualification.
Summary/Comments:
1. NASDAQ 4 letter stocks. (avoid warrants, bankruptcies, foreign stocks - the 5 letter ones)
2. Price $8.00 to $15.00 ALWAYS watch bid-ask spread and AVOID the big spreads. If you are picking stocks that go up 10% and their spread is 10% or 15% you'll loose your ass!
3. Volume 600k to 1.6 mil. during a single day. (Buy outside this range at YOUR OWN risk!)
4. Price went up that day... but not over %15. (stocks increasing 15% to 25% during one day's trading are 50/50 up vs. down ...investors just can't make up their mind about profit taking or holding for more profit in that range... consistently enough to make a projection.)
5. Price DECLINED 15% to 30% from one month ago - to that day's OPENINGprice. (this is VERY important... because picking ANY stock that meets the previous conditions will OFTEN pick stock on their 3rd or 4th wave up... The stock may have 30%, 50% or even 100%+ profit in recent weeks and those are stocks you would definitely think about shorting.
6. DUMP stocks that go down 5% - 8%. Remember, Market Makers make BILLIONS by shaking YOU out of your positions (knowing that you'll have to buy back in - or get another stock)... so they are financially raping folks who follow the advice of those seminars that are teaching everyone to sell at the FIRST decline. If you follow a PROVEN system that has consistently picked stocks that have an average profitable record... then you can invest with enough confidence to avoid the headfakes by the Market Makers. They can change the prices and they WANT you to sell. If you are scared... you'll end up their victim nearly EVERY TIME... so a health balance between confidence and common sense is VITAL to your success.
7. Take your profit... sorry I can't tell you how to exit at the best position but I usually let a profit run and when the price backs down about 2 or 3 ticks I sell. You never know when you may hit a stock like OMKT I recommended about a month ago... it had gone up 84% a few days later. That kind of profit can offset a LOT of small mistakes.
8. Check the stock's float and see if you can figure out how the number of shares issued to a stock relate to it's performance. I'm not going to tell you the answer... unless you send me a list of the number of shares issued to all NASDAQ stocks. It's a LOT of work for me to look them up one at a time on a Web site... but after doing about 1,500 I have a pretty good idea! If anyone is willing to help me do research I'll work up a list of NASDAQ stocks that I haven't looked up and you can work on them. My family (even my 8 year old) is afraid to come into my office because I may ask them to look up another 50 stocks!
Always remember: Success leaves clues!
Terry Blount, Publisher: Cream of the Crop shareware Bayou La Batre, Al. terry.blount@worldnet.att.net (Fidonet 1:3625/441) |
