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Nobody really answered the question about what is behind Online Investors
Advantage so here goes....
If you know anything about basic fundamental and technical analysis, the
Investors Advantage is a whole lot of money for some very simple ideas. I
know someone who went to their program, paid $3k for which he got two days
of a seminar and what I consider extremely basic information. Someone else
on the other hand might think it is the holy grail. One thing about the
investment "training" arena, the promoters are usually also very good
marketers - and they understand how to market hopes and dreams. Not a bad
living if you can do it. Here is the basic outline:
There are 5 steps: (This is a very simple overview but is basically what
they do)
Step 1 Search for a stock. -
Their software does basic searches that you can acquire free from many
different net sources. Like a search for high earnings, new highs, sales,
cash flow, basing breakouts, etc. Any combination, it does not really
matter. You are just looking for basically strong fundamentals. That gives
you a set of stocks to look at. They have some canned screens available.
Step 2 - Evaluate the prospects.
This is a two phase process. Phase one looks at basic fundamental criteria
like:
5/30 day volume ratio - higher than 150% is good, lower than 50 is bad
p/e ratio 7-14 good, >50 or <5 bad
p/e relative ratio 30 or lower good, > 70 bad
Projected EPS 1 mo - positive good, negative bad
Eps rank >70% good, <30% bad
Accumulation/dist - >60 good, <40 bad
You want a stock with more positive fundamentals. From the stocks that make
it to the top of the fundamental screen go to phase 2 which is to sort
through your refined list and then actually eyeball the chart. You want a
chart to be in a rising trend. Prices lower on the left, higher on the
right. Check volatility. Look at the Zacks earning estimates along with a
few other things.
Step 3 & 4 - Time the purchase and the sale
Macd cross (long avg over short or vice versa) and a stochastic cross (at 25
/ 75 level). This is the trigger into (and sometimes out of) the stock. They
may also look at a 30 day moving average to assess trend. They may also
eyeball volume for the move and support and resistance.
Step 5 - Track your portfolio.
If you have metastock and any basic knowledge of technical and fundamental
analysis, the OIA program is most likely things you already know, just might
not be applying in the same fashion.
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