Investing into Stocks - Hello Suckers!

Posted by MartZee November 30, 2009
No Comments

RINO JADE LJ International RINO International Corp Reverse Scale Strategy sell JADE Buy RINO RSS loss control plan

RINO added to portfolio, JADE sold

I decided to get rid of JADE, which doesn’t fit to my trading strategy. As I mentioned earlier, this purchase was a deviation from my rules. This is the reason why every investor or trader needs to remind his rules as long as he remembers them.

11/30/2009 15:36:47 Sold 34 JADE @ 3.0805

I also added 3 shares of RINO to the portfolio:

11/30/2009 09:30:16 Bought 3 RINO @ 33.49

Why I added only 3 shares? As the Reverse Scale Strategy dictates, you should add only the same amount of dollars to the position as your initial investment was. When I ran my portfolio loss control calculation I could add 15 shares of this stock, but RSS rule says not to do it. The reason is simple. If this new position turns against me and I will be stopped out, I will lose the second purchase, but the first purchase will make up the loss and I will end up equal. If however I would have purchased more than the first position, the second position loss would easily wipe out the first position gain and get me into a loss. For example:

My first purchase into RINO was $100 (per the loss control plan I could not spend more).
My second purchase into RINO was also $100. If this position turns against me and I will lose money, I will lose $28 on this purchase. But my first position is already making me $38, so I will end up with $18 gain. If I have purchased 15 shares instead, I would lose $150 on the second position and the whole trade would send me into -$112 loss.

We all want to hear your opinion on the article above:
No Comments

Posted by MartZee November 29, 2009
No Comments

Visa RINO MED JADE Medifast LJ International RINO International Corp account CTL CenturyTel

Picks 11/23 – 11/27

New [tag]stock picks[/tag] this week:

CenturyTel, Inc. (CTL)

Existing & new [tag]holdings[/tag]:

Symbol	Qty	Last	Gain($)	Gain(%)
[tag]CTL[/tag]	9	36.31	1.98	0.61
[tag]JADE[/tag]	34	3.22	-8.84	-7.47
[tag]MED[/tag]	8	26.72	47.44	28.52
[tag]RINO[/tag]	4	32.35	38.48	42.33
[tag]V[/tag]	11	80.33	130.80	17.37

Contribution this week: $100

Current [tag]capital exposure[/tag]: 0.02%

New positions available to open: 2

Starting [tag]account value[/tag] = $2,020.32

Account value = $2,036.70 (without margin)

Buying power = $5,008.73

[tag]Portfolio Gain/loss[/tag] this week = 0.81%

[tag]Portfolio[/tag] Gain/Loss for NOVEMBER 2009 = 6.88%

Portfolio Gain/loss for 2009 = -18.85%

[tag]Annual Return[/tag] (CAGR): -24.26%

Are you interested in Reverse Scale Strategy and see how it works when implemented to even a small account?

Stay updated with Hello Suckers

We all want to hear your opinion on the article above:
No Comments

Posted by MartZee November 25, 2009
No Comments

sell stocks JADE growth LJ International Netezza NZ sales growth ratio

Review your portfolio and get rid of junk

When I realized recently how much I was ignoring my trading rules I used those last couple days working on getting back on track. I learned again, how important it is to have rules and follow them no matter what. Of course, you still can be working on improving or modifying those rules to fit your trading style, but you should stick to them. Otherwise you soon start buying junk and losing money.

Today, I reviewed my portfolio to check, how many stocks fit into my stock selection rules and I found that LJ International (JADE) and Netezza (NZ) do not fit. If you ask me why I bought those stocks, I do not have an answer. I just had a feeling. But feelings will lose you money. Both stocks didn’t surprise with earnings, both stocks have negative sales growth ratio, none make new 52-W highs, JADE doesn’t even have minimum required trading volume and it trades below $5 (another wishful thinking about getting rich quick).

I decided to give those stocks a chance. However, I moved my stop loss order tight to the price for both stocks. If they won’t go up only, they will be sold.

We all want to hear your opinion on the article above:
No Comments

Posted by MartZee November 24, 2009
No Comments

ORS Orsus Xelent Technolgies sell ORS

ORS sold

It seems, somebody was lucky today morning when I decided to sell ORS. I was sold first thing in the morning:

11/24/2009 09:30:24 Sold 67 ORS @ 0.78

Since then, the price was falling like a rock, because ORS filed worse than expected 3rd Q results. The outlook is not bright as well, even though it was packed into nice words. I am not interested in this stock anymore.

We all want to hear your opinion on the article above:
No Comments

Posted by MartZee November 23, 2009
No Comments

ORS sell stock Orsus Xelent Technolgies 52-week high bad stock 50-day MA

ORS removed from portfolio

I decided to sell Orsus Xelent Technologies Inc.(ORS). This stock appears to me as a complete junk. It doesn’t fit almost none of my criteria, it doesn’t trend and I do not want to block my money on something like this.
The truth is, I just picked up this stock in euphoria of making money by buying a penny stock, which for sure will rise to $40 a share and makes me a lot of money. Heck no! This is not how I want to trade stocks. I might be watching this stock and if it shows momentum and price movement I might buy it back.

So far, it violates almost all my rules:

It doesn’t make new 52=W high
It has negative sales growth
It trades below 50 day MA
It has choppy trend with no progress
Daily volume is below 300k
Its market capitalization is below limit
its price is below $5 (for a reason)

I don’t know why I even bought such stock. This is another lesson, why I need to stick to my rules and stop buying stocks based on feelings.

I placed an order to sell this stock tomorrow at market opening.

We all want to hear your opinion on the article above:
No Comments

Posted by MartZee November 23, 2009
No Comments

buy stocks CTL CenturyTel new positions

CTL added to portfolio

Today I bought CenturyTel, Inc. (CTL):

11/23/2009 09:30:21 Bought 9 CTL @ 36.09

My portfolio is now invested, so no more positions can be opened.

We all want to hear your opinion on the article above:
No Comments

Posted by MartZee November 23, 2009
2 Comments

growth CTL CenturyTel buy CTL sales telecommunications 52-week high sreening stocks stock screener sales growth Reverse Scale Strategy growth factor evaluate stocks how to select stocks to buy

CenturyTel CTL as a core of the portfolio

The whole Sunday I spent rereading and polishing my stock pick strategy. Recently I deviated from several rules I originally used. I thought I already remembered them all or I could outsmart the market again. What a costly thinking! This time I, however, wrote them all down on the paper and created a checklist in Excel spreadsheet with data necessary to input manually (in this case I would really remember those rules).

What screening rules do I use?

It’s simple. As the Reverse Scale Strategy defines I use stocks which:

Are making new 52-Week Price highs.
Have the highest 1-year sales growth possible.
Have the highest 1-year price/share growth ratio possible.
Have the highest growth factor possible (this one is calculated based on the ratios as in items #2 & #3.
The daily volume is above 300k.
The stock price is not overextended more than 20% above 50 day MA.
The stock is trending upwards without excessive volatility – checked on a daily (YTD), weekly, 1 year and 5 years chart.
The stock has a reasonable price to sales ratio P/S – when I add all selected stocks together I calculate an average ratio of all stocks and then check the particular stock’s ratio with the average. For example the screen I ran today has an average of 1.29 and CTL has P/S of 2.73. This number is among those higher ones, but acceptable for telecommunication companies.
The company is not among banks, miscellaneous, savings & loans, utility, mining and real estate (REIT) companies.
Market capitalization 5B – 10B
Sales growth (revenue) double digit growth ratio in the most recent year.

CenturyTel, Inc. (CTL)

CenturyTel is a company which fits my screening criteria. It has sustainable growth, it is trending up (the price is above 50-day MA and 200-day MA), it is not overextended, creating new 52-week highs. Its quarterly revenue growth ratio is at 188%, price growth at 62%. It is a telecommunication company operating a range of communications services, including local and long distance voice, Internet access, and broadband services in the continental United States.

I decided to buy 9 shares of this stock tomorrow at market open.

We all want to hear your opinion on the article above:
2 Comments

Posted by MartZee November 21, 2009
No Comments

stocks money Visa money management Picks history RINO ORS MED buy stocks JADE earnings Medifast LJ International Orsus Xelent Technolgies RINO International Corp make money in stocks account Netezza NZ stocks trading V stock holdings NASDAQ NYSE AMEX

Picks 11/16 – 11/20

New [tag]stock picks[/tag] this week:

Netezza Corp. (NZ)

Existing & new [tag]holdings[/tag]:

Symbol	Qty	Last	Gain($)	Gain(%)
[tag]JADE[/tag]	34	3.22	-8.84	-7.47
[tag]MED[/tag]	8	26.69	47.20	28.38
[tag]NZ[/tag]	10	10.62	-5.00	-4.50
[tag]ORS[/tag]	67	0.79	-20.06	-27.48
[tag]RINO[/tag]	4	28.00	21.08	23.19
[tag]V[/tag]	11	80.00	127.17	16.89

Contribution this week: $0

Current [tag]capital exposure[/tag]: -2.09%

New positions available to open: 1

Starting [tag]account value[/tag] = $1,922.05

Account value = $1,920.32 (without margin)

Buying power = $446.19

[tag]Portfolio Gain/loss[/tag] this week = -0.09%

[tag]Portfolio[/tag] Gain/Loss for NOVEMBER 2009 = 6.35%

Portfolio Gain/loss for 2009 = -20.31%

[tag]Annual Return[/tag] (CAGR): -26.01%

The stock market reacted pretty much as I expected. To add to it next week I expect it slowing down more. This week I also realized how much I deviate from my rules when selecting stocks to buy. I had to write them down and be more careful when selecting stock for purchase.
I also learned another lesson. It is about my money management plan, which allows me to buy new shares even though some of the existing holdings are still losing small money. I might consider waiting for all positions to turn into positive numbers prior purchasing new positions.

Are you interested in Reverse Scale Strategy and see how it works when implemented to even a small account?