- Long only. (No shorting, no options)
- >$20 and volume >500,000 (High priced liquid stocks only…no pink sheets, pennies,OTC, etc.)
- 4 sectors (Why trade in sectors that have a very low chance of having great moving stocks?)
- Set % target. (Time = money as well.)
- 100% systematic entry and exit. (Built over 20 years. No gut feel, thinking, guessing…follow a proven system to a “T.”) There is no such thing as “a great stock picker”….it’s a smoke screen.
No fundamentals, no predicting, no watching, no hoping, no asking. Once a week trade management.
Stocks hit the target: WB,FB,TSRO,NVDA
Sample the stocks:
If you go all in on one stocks your volatility increases massively. If you had have bought a stock like FB or WB 2+ years ago you’d be up over 400%. But it is huge risk.
At the other end of the scale most funds invest across so many stocks they are the averages. And you get charged a high commission to mirror the averages. I think it was found over 15 stocks you are the averages.
There is a middle ground. Taking on a bit more risk in the hope of bigger gains. Not gambling, but not being so risk averse you end up not able to beat the averages. That’s what this style of trading is about. It is not possible to make 40%+, SOME YEARS any other way.
- No management fees. 20% profits
- Goal: Double the account every 3-4 years with less than 15% draw-downs
- Less than 3% of your net-worth due to higher volatility at times.