THREAD HONOR: Forbes Magazine "Top 10" Stock Message Board On The Net (March 2002)
forbes.com
NOTE: Please read disclaimer at the bottom of the page
INTRODUCTION
What's this thread about? Well, beside quarterly stock contests and a cool, free 8 x10 " original landscape art photo for anyone (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. In other words, maximize reward and minimize risk.
"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 best accomplished based on chartwork, news analysis, fundamentals and the patience to wait for the Reward to Risk to turn strongly in your favor. Reading the psychology of the Market (i.e. the Fear/Greed ratio) is also critical as an overly negative or euphoric market can overshadow T/A or even fundamentals for a time.
PLAYING THE ODDS AND KEEPING AN OPEN MIND
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 500-700% on a couple of them recently.
SECTOR DIVERSIFICATION
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 various indexes and try to identify the strongest "best buy" candidates in each. Technology may not be the best place in 2002, so it pays to diverisfy and expand our watchlist.
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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, 4:15pm EST.
OUR LANDSCAPE PHOTO WEBSITE (and free 8 x 10" offer)
The winner and runner-up get original signed, photo art from our gallery at naturescapes-gallery.com
I've won many photo awards. Please stop by if you love nature, hiking, and the outdoors, especially if you need a little mental break. Donations from a percentage of sales are made to the World Wildlife Fund (http://www.wwf.org) BTW- SI members receive a 20% discount, except during major sales and anyone can get a free 8 x 10" original, signed photo (value $29.95). Currently there is a "3 for 2" Spring Sale going on. Prices start at $7.20 for SI members (i.e. $9 less 20%).
MOST POPULAR PRINTS
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FINANCIAL SITES WORTH CHECKING OUT (FWIW)
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Happy Trading!
Disclaimer ---- this thread is intended solely for discussion and sharing of ideas that hopefully will help us all to become more successful traders. No one is assumed to be giving insider information or is a licensed professional. The information presented by me, while believed to be accurate, is not guaranteed. No trade suggestions or strategies are ever guaranteed to be successful. It is strongly advised that everyone do their own verification and due diligence before making any investment decisions or employing any investment techniques mentioned here. The best philosophy is to trust no one on any message board. If you do so, it is at your own risk. |
