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How about ANAD?
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DMK,
ANAD has many good points, but it also has weaknesses that keep it off the list. ROE , sales , earnings haven't been very impressive. Appearing near the top of my screens in the most categories is how stocks get on the list. Even one bad screen can keep a stock off the list when it is compared to 3-4 other stocks that for example have a positive ROE.
billyjoeComment
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Billyjoe, I’ve attached an example of using the 1% risk model to your picks
Current Balance in account $973,777
1% per position is risk of total port. $9,737.77
HOM 9,737.77/ATR(14)x2=15,215 shares initial stop @ 5.04
This will limit exposure and purchase amount of shares based on the 1% rule. Now if you get stopped out at 5.04 your loss of total capital is 1%. Unless nasty gap down. ON a percentage bases your looking at about 11% loss but your total port amount loss is only 1% or about 9,737.77 amounts risked. You can see your giving these boys run to bounce around and not sure if this is your intent or not. I just wanted to use this as an example to give you other things to think about.. Now you can also use what even risk model you like. You can even drop to .5% of total capital since you have a large account. Market conditions could maybe allow you to go as high as 2%. I would not go above 2% on any position.Comment
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Another thing to realize is your total risk is 1%. Even though the initial investment seems like a lot of money your only risking 1% of your money to make you money. Many people think they have it all on the line and to a certain degree they do. But you exit your position at the point you planned and you allow wiggle room from the daily noise. This model may give you some huge returns. It is a volatility risk model and results can be staggering. In Tharp’s book he talks about this model and shows some example of data. It blew the doors off other models.
Here is a major advantage of this model.
It allows both small and large accounts to grow steadily. It equalizes performance in a portfolio by volatility. It can equalize trades when using tight stops without putting on large positions. THE AMOUNT RISKED IS NOT THE ACTUAL RISK.
Volatility position sizing has some awesome features for controlling exposure. FEW TRADERS use it. Yet it is one of the more sophisticated models available.Comment
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Runner,
In this experimental portfolio I'm buying equal amounts ($100,000) of each stock at the beginning of the week and liquidating everything at the end of the week regardless of what the stock does. My maximum loss on any one position is 7% of 10% or .07% on each position. That is only if the 7% stop is hit on Monday as it was today with HOM. The stops are then tightened to 6,5,4, and 2% the remaining days of the week.
billyjoeComment
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Week 5 Cheap Stock Portfolio
HOM 5.67 stopped at 5.27 for 7% loss funds remaining $93,000
NUAN 6.18 close 6.76
MOSS 5.43 close 5.65
RWC 8.23 close 8.30
TLF 5.35 close 5.31
PRFT 9.45 close 9.44
MED 5.40 close 5.51
ENG 6.54 close 6.68
MESA 9.76 close 9.43
LPSN 4.98 close 4.84
5 advanced 5 declined
billyjoeComment
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Originally posted by billyjoe
10-4 I got it!Comment
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Week 5 Cheap Stock Portfolio
Stopped today
RWC - $95,383
MESA- $93,955
LPSN- $93,976
HOM- yesterday $93,000
We've got 6 stocks left MOSS, NUAN, TLF, PRFT, MED, and ENG. Will reinvest money tomorrow at least an hour after market open if anything is looking good. Our 3 top candidates for getting the cash are MOSS +2.3% NUAN +5.7% and ENG +7.8%. Our cash position is $376,314. Stops tomorrow 5%.
billyjoeComment
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Wednesday PRFT stopped remaining cash $95026. We now have a cash position of $471,340. We are reinvesting into equal amounts of $157,113 into our 3 best NUAN 6.71, TLF 5.47, and ENG 7.2005. Our 2 other positions MOSS MED are close to being stopped.
billyjoeComment
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Week 5 Thursday
MOSS and MED were stopped as predicted. Cash values : MOSS $101,473 MED $95,926. We've got 3 winners remaining : TLF +6.17%, NUAN +6.31%, and ENG +14.83%.
We put the $101,473 from MOSS into TLF today and we will decide tomorrow where to put the MED $95,926.
billyjoeLast edited by billyjoe; 12-15-2005, 07:54 PM.Comment
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Week 5 Friday
$95,926 from MED sale goes to TLF @5.70 . We've got over $1,000,000 in these 3 stocks with 2% stops today :
TLF $465,477 @5.70
NUAN $260,146 @6.57
ENG $278,698 @7.50
Have to leave computer area for several hours so they're on their own unless stopped.
billyjoeComment
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Week 5 Cheap Stock Port
We put all our eggs in 3 baskets today. Today's results : NUAN 6.68 up .11 , TLF stopped at 5.59 down .09 , ENG stopped at 7.35 down .16
Final total $994,603 minus $300 transaction fees $994,303 down .57% for week
Final totals for hold and fold method :
HOM stopped $93,000
NUAN sold $108,091
MOSS stopped $101,473
RWC stopped $95,383
TLF stopped $104,486
PRFT stopped $95,026
MED stopped $95,926
ENG stopped $112,385
MESA stopped $93,955
LPSN stopped $93,976
Final total $993,701 minus $300 transaction fees $993,401 down .66% for week 5
billyjoeComment
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Week 6 Cheap Stocks Portfolio
1. HOM 4.95 home restoration after flood, wind damage still ruling the screens
2. TLF 5.64 retail ,wholesale leather goods
3. MED 5.23 health and diet products
4. MOSS 5.58 designs licenses clothes mostly to target stores
5. RWC 7.35 wireless 2-way radios
6. SPIL 5.94 Taiwan semiconductor testing
7. CMPX 6.70 electrical stimulation apparatus for pain management
8. GW 8.05 onshore gas drilling southwestern U.S. and rocky mtns.
9. SLW 5.06 Canadian company mining silver in Mexico and Sweden
10. PRZ 3.65 pain management
billyjoeComment
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Looks like the "El Cheapo's" portfolio isn't going that well...what do you think is going on?Comment
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dmk,
I think maybe these stocks aren't so good for the short term, but better in the long run, except for the turkeys that will totally fold. Most, however , are legit and will survive in my opinion.
billyjoeComment
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