I will be ranking a universe of stocks from the top 10 performing industries from now on(beginning with the next pick for Monday 04/26/04. Before I was ranking from a selection of 3500 candidates based on good fundamental, value stocks with no expected surprises on the horizon. I will still be doing the same but on a filtered universe from the top performing industries. Perhaps, the by-product of this adjustment will cause days with no picks. But the Stock a Day ranking will occur, even though there may be no produced picks. I do not know yet, we shall see. The target of 20% will remain for now. I should not make too many changes too fast. (I am considering 10% as many picks reach that before the market changes direction) Each selection will continue at the 20k entry amount. I am limited to the changes I can make in the virtual fund. We must not get off track. The reasoning for this adjustment is to try to get the target before the "average down" occurs. Perhaps 20% is too high, and I will not be able to get out of the pick for a long time. Perhaps a better exit strategy could be used rather than this fixed/static version of 20%. The portfolio seems to be holding its own overall. We have found one stock so far reaching its target. The portfolio is now 100%compliant at Marketocracy, because we are now 65% invested. TLT seems to slow it down as it is 20% of the portfolio. You will notice that I am not entering more money into TLT. TLT is safe as I believe interest rates shall rise. But I do not want to trap too much money in TLT as eventually the "stock a day picks" may require some liquidation of TLT to free up cash for further picks. I have also learned to remain compliant that I cannot have more than 25%(I thought it was 35%) in any one symbol at marketocracy. I am at 20% with TLT currently. Michael B.
He means he is underperforming and doing the novice thing by not sticking to the plan... Just admit it Electric: 1) The averaging down will kill you. 2) Fundamentals have no place at EliteTrader 3) Value plays do not necessarily give you the velocity you need. 4) Entering and Exiting on the open will not give you the precision required for entries and exits. Wifey