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Chris
You'll probably need my first e-mail to recall what everything means here.
We've had an awesome 3 days. Between the stocks and futures, we're up right
around 6 figures between my brother and myself. At this rate, we're never
going to do much of anything but trade. :)
I only hope this move up lasts for another week or so.
We also need to work on our short positions. I'm not really happy with just
selling the indices, so I'm working on that right now, trying to determine
what stocks to short when we get our next sell signal.
We didn't get off on our Calls on Tuesday. Still working on technique.
Guy
Paranoia...you only have to be right once to make it all worthwhile!
-----Original Message-----
From: owner-metastock@xxxxxxxxxxxxx [mailto:owner-metastock@xxxxxxxxxxxxx]On
Behalf Of Chris
Sent: Thursday, June 01, 2000 4:20 PM
To: metastock@xxxxxxxxxxxxx
Subject: Re: Picking our stocks
Yes, please. I would like a copy also.
& Thanks for your mails (and everyone else's too).
I am just starting out in TA & trading, and while not using anyone's ideas
in
particular, I find that knowing there are others going through similar
emotional
things a great help.
Cheers
Chris
New Zealand
Guy Tann wrote:
> List,
>
> If anyone is interested, I have an Excel spreadsheet that I put together
> with 3 pages. The first page lists those 13 stocks we selected out of the
> original 55 gleaned from ValueLine. The second page is a quick analysis
of
> what would have happened if we had bought all 55 of the list, and the
third
> page shows our breakout of 25 stocks from the original 55 using one of our
> programs to determine over-bought or over-sold conditions. These 25
stocks
> were, according to our system, ready to be bought.
>
> If anybody is interested, I can send them a copy, but didn't want to just
> throw it out on the list.
>
> Our stock selection technique is as follows:
>
> 1) Friday night, we go out on the ValueLine web site and go down to their
> stock pages. We select those stocks that have a 1 in timeliness, and a 1
or
> 2 in whatever the second column is to the right of timeliness. We look
for
> a beta > 1.25. I think we snuck INTC in as well. This is our preliminary
> cut. This gave us a list of 55 different stocks. We try to stick with
the
> top performing industries.
> 2) In the next step we apply one of our trading programs to each stock, to
> determine whether or not our program indicates that the stock was
over-sold.
> If it was over-sold, we added the stock to our next list. This reduced
the
> actual number of stocks from 55 to 25, I believe.
> 3) Theoretically, we could have bought all 25. Finally, we go through the
> list by hand on a conference call and arbitrarily select between 10 and 15
> stocks that we buy on the next day's open. We haven't spent any time on
> this step yet, and through dumb luck have managed to do fairly well with
our
> portfolio.
>
> I have to give my brother for designing this approach. We will be
spending
> more time on step 3 as well as working on modifying the procedure for the
> short side. Right now my brother is a little nervous selling stocks
short.
> You would think that after trading futures both ways for 40 years, he
> wouldn't have that problem.
>
> Anyway, we went with 13 original stocks on Tuesday's open and added 4 more
> this morning. Based on my preliminary calculations we are a little ahead
> with our own portfolio as opposed to buying all 25 stock, but not by much.
>
> We are in the process of going back and entering the OB/OS indicator in
this
> spreadsheet to do some more work on Step 2 and Step 3, above.
>
> By the way, purchasing even 100 shares of each of these 55 stocks stressed
> out each of our margin accounts, but we could have done it with a little
to
> spare.
>
> Guy
>
> Paranoia...you only have to be right once to make it all worthwhile!
Attachment Converted: "f:\eudora\attach\MS List spreadsheet2.xls"
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