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ben4trials
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My story is this. I used to be a bond trader/Trustee at US Bank earning sub $40,000 per year(one of Warren Buffett’s favorite investments) and decided that I had had enough of cash flow sheets, StoneTower client bond agreements, whining from fellow employees, stale high-rise cubicles, and a... More
My company:
C Squared Trading
My book:
The Triple Whammy Strategy
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  • An interesting new strategy that has a proven track record.

    CPL NVO UA RAX ARMH IGTE OPEN EBIX AAPL GMCR ADTN HMIN FTNT

    OK these above listed stocks were ones that I found on Thursday and Friday and wanted to watch before releasing this strategy. If you were to have put $10,000 into all these at the closing bell on Friday you would be up around 5% or 7k-10K

    Here is the deal. These stock all mostly contain these 7 elements. I found this in a book “how to make money in stocks” by Oneil. It is by far one of the best books I have read in a while.

    The reason that OPEN moved so much today is because all of these elements were intact. There is much research that goes into finding the best stock. BUT when you find that stock, OH my it will move, because unless a company is growing their sales or EPS then the stock can’t move. These have to be hand in hand along with the other 5 elements in the book. If you don’t know what these terms mean then do some research to see if you can figure it out. Pretty simple. It also seems that Internet stocks are all doing really well lately, if you had been in CRM, NFLX AMZN OPEN, you would have never thought we were in a semi bear market.

    You must obey the 8% stop and 15-20% gain or sale of your stock. That means out of three stocks if 2 go down and one goes up you are still up 4%

    For example one in play right now is NFLX it hit new 52 week highs and it is growing at an outstanding pace. This is a winner. If you bought here and put an 8% stop in this would be following the rules.

    One stock that has not move yet but WILL if everything stays intact is EBIX.

    C stands for Current earnings. Per share, current earnings should be up to 25%. Additionally, if earnings are accelerating in recent quarters, this is a positive prognostic sign.
    A stands for Annual earnings, which should be up 25% or more in each of the last three years. Annual returns on equity should be 17% or more
    N stands for New product or service, which refers to the idea that a company should have a new basic idea that fuels the earnings growth seen in the first two parts of the mnemonic. This product is what allows the stock to emerge from a proper chart pattern of its past earnings to allow it to continue to grow and achieve a new high for pricing. A notable example of this is Apple Computer’s iPod.
    S stands for Supply and demand. An index of a stock’s demand can be seen by the trading volume of the stock, particularly during price increases.
    L stands for Leader or laggard? O’Neil suggests buying “the leading stock in a leading industry”. This somewhat qualitative measurement can be more objectively measured by theRelative Price Strength Rating (RPSR) of the stock, an index designed to measure the price of stock over the past 12 months in comparison to the rest of the market based on the S&P 500 or the TSE 300 over a set period of time. [2]
    I stands for Institutional sponsorship, which refers to the ownership of the stock by mutual funds, particularly in recent quarters. A quantitative measure here is the Accumulation/Distribution Rating, which is a gauge of mutual fund activity in a particular stock.
    M stands for Market indexes, particularly the Dow Jones, S&P 500, and NASDAQ. During the time of investment, O’Neil prefers investing during times of definite uptrends of these three indices, as three out of four stocks tend to follow the general market pattern.

    This last part is quoted from Wikipedia

    Good Luck and I will be tracking these stocks mentioned to see if they continue running and follow the strategy.

    Ben Brinneman



    Disclosure: No positions
    Sep 13 10:34 PM | Link | Comment!
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