Howdy I've read over the OP's comments and like the overall summary. You express a good understanding of your approach which i think is key for someone starting out. I'm interested to see your trades in the next few weeks and months so please do keep us posted. Thanks. Ch. Insp. Clouseau
Closed out my RTSX position today at 32.89 for a -3.6% loss on the overall position. My saving grace was that it was a small position. In retrospect I should not have messed with it after the dilution and got aggressive with my entry, I think it may pull back in the 20's now. Oh well, that is what we do, trade and learn from mistakes... I never mind taking a small and controlled loss, they will occur, and I really don't mind taking a small loss when I learn something. This leaves me with open positions in ARD, TALX and a small one in HANS. BTW, thank you all for the feedback!
I am looking forward to my next screen, I will probably complete on the 16th, MLK day with the extra time and all. I am eager to see what insights into the current market the results reveal. Stay tuned...
Initiated a screen today, the following stocks made the first cut. My screens turned up an initial universe of 82 names, larger than the last screen but still a little smaller than average. Saw some of the same names but there are more new ones this time around. I have to double check all of this because I just bought a new PC and all of my screens and software were on the old one and didnt bring it over so I kinda had to start from scratch. Too tired from the weekend (Go Steelers!!!) to do much more but I am going to finish the other phases of my selection process tomorrow. ATI Allegheny Technologies Incorporated ACR American Retirement Corporation BBD Banco Bradesco S.A. (ADR) BMHC Building Materials Holding Corp. ENER Energy Conversion Devices, Inc. FTO Frontier Oil Corporation GIL GILDAN ACTIVEWEAR INC GMXR GMX Resources Inc. KNDL Kendle International Inc. LIHRY Lihir Gold Limited (ADR) LUFK Lufkin Industries, Inc. MIND Mitcham Industries, Inc. MFLX Multi-Fineline Electronix, Inc. NETL NetLogic Microsystems, Inc. ORCT Orckit Communications Ltd QSII Quality Systems, Inc. SUN Sunoco, Inc. TALX TALX Corporation TS Tenaris S.A. (ADR) TSO Tesoro Corporation LMS The Lamson & Sessions Co. UBB Uniao de Bancos Brasileiros SA (ADR) VLO Valero Energy Corp. VPI Vintage Petroleum, Inc. VPHM ViroPharma Incorporated
TraderX, If I can ask what program do you use for the screening of the stocks and while 32%/year for last two years is impressive, have you tested your method going back 5-10 years.
took profits in TALX today ahead of their earnings... I dont really like holding through an announcment but liked the price action so I held half of my overall position, will see what tomorrow brings.
I dont use anything sophisticated, at least not yet, just freebies on the web. I dont care to back test either as I dont know how I would do it with the data I use... I am sure there is a way but it would be so time consuming and intensive I would rather focus my time and resources on whats happening in the future... Further, it may surprise some of you but i dont view back testing as meaningful as some because past performance is meaningless, just because it happened in the past is no assurance it will continue to behave in that manner... Although I know that will stir some controversey and I have known succesful traders who back test and it works for them but I am looking moreso for a system that is forward looking. But backtesting is more of a "techie" method whereas I am not as techie as I am fundamental and tapereader... But i am always open to new ideas so maybe someone can convince me or find a way that would benefit my methodology.
Good results. I have a question. Do you avoid the earning announcements? Several times I have been bitten by earning disappointment. Thanks.
I certainly don't "play" the earnings and yes generally avoid them: as you experienced they are too volatile. Of course it all depends on how the stock is acting and at minimum I usually lighten up ahead of the report. For instance TALX is acting well, I already took some profits and may carry a small position throug the report depending on the action.