I really like your idea of selling market futures against these stock purchases. (I mean I really really like it). The reason is that the aforementioned method has outperformed the overall market in each of the last 12 years that I have been using it. I'm not smart enough to properly time the market, although I think I am quantitative enough to find stocks that will outperform the market. If I had been smart enough to sell futures against each of my purchases, I could lock in this delta. Thanks for your insight!!!!
You are entitled to your opinion. There are 253 people in my Yahoo Group who feel quite the opposite: http://groups.yahoo.com/group/mrmarketishuge/
I keep a portfolio of 14 stocks. When a stock hits my sell target (usually 15 - 20% gain in less than 6 weeks), I will sell it. I then re-run my model and replace that stock in my portfolio. Presently I do not use stop losses. I have found that most of the stocks I select eventually turn around and do hit my sell target. The reason for this is I am buying stocks with rock solid fundamentals (I know this is a trading board, but there IS a reason why some companies make money). If a stock's price falls while its earnings are rising, it means it's a better value...so I hold it. If its fundamentals ever change, then I'll dump it faster than last night's chili dinner. I hope I can keep this on topic too. I'm not the one that starts this nonsense.
Sorry, what was the link again? Could you post it like... another 20 or 30 times? Because we NEVER tire of seeing the worthless string of characters that mean so much to you and so little to anyone else... and yeah yeah, where's my yahoo group, post my pic on uglies.com etc. etc. etc.
I mostly look at IBD stocks and this stock screener: http://investor.stockpoint.com/leftnav/pages/stockfinderpro.asp?ClientID Mr. MAN....I think you are on to something here. You remind me of Prof. Donald Keim (who I studied the January Effect under). He preferred dealing with databases of stocks rather than individual ones. I guess I'm just a fundamentalist in nature and like to see what makes a company tick. As a result, I get a little more thrill out of seeing why a company is making its earnings growth and betting that this will continue...thus, my final screen in my model.
You are incorrect. From January 1, 2001 through December 31, 2003, I had 53 consecutive closed profitable trades of 15% or better.