CONDENSING Blue Cheap TRADING STRATGIES:
{A # 1)How I find BLUE CHEAP STOCKS TO INVEST IN!
Well Known here by now is my story of how Bill Mathews and his CHEAP INVESTOR Gave me the OPPORTUNITY to take $7,000 and Compleatly Change my Financial Status from 45 years of wondering if I would make ends meet. Nothing bad just could not happen. THEN I was introduced to The Cheap Investor and I SEIZED The OPPORTUNITY. His Monthly newsletter The Cheap Investor and Weekly Hot-Line recomends QUALITY stocks priced usually under $5 using FUNDAMENTAL ANALYSIS. BILL with the help of his wife KAREN publish The Cheap Investor and also wrote a Book "WINNING BIG WITH BARGIN STOCKS"
Anyone is invited to call (847)697-5666 for a FREE ISSUE of the news letter. The cost of the FULL service is $158.00 per year, and the Book right now is $25.00 (Worth about $$$,000 to me). It is HARD for me to bring myself to INVEST IN ANY STOCK WHICH IS NOT RECOMENDED BY BILL MATHEWS. With that said, on to STRATEGIES.
(1) Buy Quality stocks selling usually under $5!
(2)Only Buy IF that stock is at or NEAR its 52 week LOW!
(3) CONSIDER the NUMBER of shares you are able to CONTROLL!
Example: Your BUYING POWER is $10,000; You can buy 300 shares of Wal-Mart (WMT) @ $35 OR you can BUY 20,000 shares of Emerson Radio (MSN).
When Wal-Mart (WMT) moves up to $50, you will have a profit of $4,500.
When Emerson Radio (MSN) moves up to $1 you will have a profit of $10,000. This is on a $.50 move which can occur with in ONE DAY!
(4) Consider the amount of capitol your investing and LIMIT the NUMBER of STOCKS you own at any given time. Example: $1,000 to invest= ONE stock; $5,000= ONE to TWO, $10,000= TWO; $20,000 to $50,000=TWO to FOUR; $50,000 to $100,000=MAX of 7 stocks. If you spread your cash TWO thin by owning several stocks, then you DEFEAT THIS STRATEGY of NUMBER OF SHARES=HUGE PROFITS on a SMALL INCREASE in PRICE. Which can and many times does in ONE DAY!
(5) PATIENCE, PATIENCE, PATIENCE; IF you invested in a QUALITY Blue Cheap Stock and it does not move be PATIENT! If the stock drifts down enough to justify averaging down, BUY MORE.
(6) To AVOID MISSING a NICE profit, SET A LIMIT SELL ORDER on a stock at your CHOSEN PERCENTAGE. If you expect the stock to move in a SHORT TIME then DON'T be GREEDY, even 20% turned 5 times a year is 100%. To determine WHERE to set this LIMIT ORDER, just MULTIPLY the PRICE you paid TIMES the CHOSEN PERCENT. Example: MSN, for 20%=paid 9/16= $.56125 X 1.2=$.6735 about 11/16; Want MORE, then $.56125 X 1.7=$.954125 about 15/16; A little GREEDY, and want 120%, then $.56125 X 2.2=$1.23475 how about we settle for $1 & 3/16.
(7) Be ASSURED if a stock RUNS 30, 50, 100 percent 99% of the time it WILL fall back down. IF you FAIL to SET THAT LIMIT SELL ORDER you may very well miss an OPPORTUNITY. A missed opportunity is GONE FOREVER, you may get another but THAT one is GONE!
(8)Depending on the amount of capitol, considering the # of shares and # of stocks owned at any given time, also consider this. (1) Buy only HALF of the amount you really want of a stock, saving some cash to average down in THAT stock. (2) Try to have SOME cash IN RESERVE so as to NOT MISS the OPPORTUNITY to get in on a stock which is thought to be about to MOVE up quickly. These are MISSED OPPORTUNITIES also, and can be VERY PROFITABLE if you are ATTENTIVE and HAVE the BUYING POWER ON HAND.
(9)Read the SUBJECT content of THIS Thread Which I created in order that I could SHARE my STRATGIES & EXPERANCES with others. Also these post #'s here which I replied to questions asked me,which I believe will also serve as a help to you. They are post #'s 7, 14, 31, 102, 114, 138, & 265
As I stated in the Subject " I hope this, in some small way, will have been of benefit to those who pass this way. I could not help but share this because of how this STRATEGY and THE CHEAP INVESTOR Changed my Financial Status. I have openly, honestly, described my experience in Blue Cheap Stock TRADING and Publicly Thank BILL MATHEWS & his CHEAP INVESTOR.
I am not an investment advisor, if I were I might consider hiring ME, but Bill Mathews works cheaper $158.00 per year(VBG) So anyone who reads and follows these perceptions must invest by making their OWN decisions.
Malcolm Lindsey |
