What's this thread about? Well, beside quarterly stock contests (see below), it's about sensible stock picks at the right entry point with better than average odds of success. After all, we've all learned that we have to work harder to not only make money in the Market, but preserve it, too. But how?
OVERRIDING PHILOSOPHY- I am more convinced than ever that the best way to be successful is to BUY QUALITY STOCKS AT THE RIGHT ENTRY POINT.
"Quality stocks" are those that have reasonable PE's, PEG's and Price to Sales, fundamentals and a good track record. I also like stocks that have good volume, as too many with under 300K or so per day are more easily manipulated. It should be noted that I normally don't short stocks, although I do buy put options occassionally. The "right entry point" is accomplished by picking a watch list candidate that has reached a favorable entry price based on chartwork, news, and fundamentals. A stock that pulls back to support from overbought levels for no fundamental reason is the ideal candidate, especially if the Market and sector is looking favorable at entry. We also consider special situations in less than perfect candidates and even penny stocks once in awhile, but that is an exception. Ditto, stock options since we have had some major success recently with gains of 400-700% on a couple of them recently.
Why is this a good approach? Simply because, more than ever, the quality stocks are where most of the big money will flow into, as Fund Managers, baby-boomers, and even many daytraders don't want to get scorched again risking precious capital on over-priced momentum stocks that could take a big hit at a moment's notice.
TYPES OF COMPANIES - We love technology like the next guy, but we need to pay careful attention to sector rotation. We rule out no sector, so we track Drug and Biotech stocks, Healthcare, Banks, Retail, Oil and Gas companies, Security, Defense, Consumer cyclicals, etc, etc. Technology may not be the best place in 2002, so it pays to diverisfy and stretch out our watch.
WATCH LIST AND THREAD PORTFOLIO
This is no relation to the contest at all, but a watch list and rough portfolio of stocks that have been traded to measure relative success with the above trading philosophy. The list changes quite frequently in this market. The link below explains the purpose of it and how to view it:
Message 16964479
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CURRENT CONTEST PORTFOLIOS (20 min. delayed)
Message 16869866
Click the above link to see where you stand. The current contest ends April 1, 4:15 EST.
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FINANCIAL SITES WORTH CHECKING OUT (FWIW)
1) CLEARSTATION.com (great education and chart analysis site - bound to make us all better traders and investors)
clearstation.etrade.com
2) STOCK CONSULTANT.com - amazing amount of analysis and some relatively simple to understand buy/sell advice. I am still checking it out to see how much it could help increase trading results. You may want to as well.
stockconsultant.com
3) SHORT TERM STOCK SELECTOR: apparently has had 70% returns using computers only: "Who says computers can't pick stocks? Free picks daily by a neural net computer program with an impressive 70%+ ROI." I'll be tracking this for a few months to see how they do.
home.flash.net
3) DOH.com: (love the name since I love the Simpsons); Looks to be a good site with excellent links to other sites. Their medium and especially long term picks seem sane and sensible. Another new one to watch for awhile.
doh.com |
