Jack Carters Book "Profit Rich Stock Trades" Review

[Phoenix7]

Dead eye

Hey Phoenix 7:
Give us your 5 picks, entry price , stops, and initial target. lets see how well Jacks system works.
If you want to make it a contest I will give you 5 picks.
Who knows maybe they will be the same.

My picks are usually recorded in the lazy dog portfolio which is a real money portfolio. Right now I only have 3 positions as I am waiting for the market to make up its mind which way it wants to go.

Dead Eye Let's cut it to 3 picks beginning with Friday's close 1/13/12 to the 1/20/12 close on Friday. Picks must be in by Sunday 1/15/12 This will make in simpler! Friday the 13th will be our start price and Friday the 20th close will be our final price.
Let's take it to the mats LOL ! Hey we will both learn something .

[Deaddog]

OK 3 picks it is.

Make the pick over the weekend. Start price will be the open on monday or do you want to use a limit order for monday to protect youself from gaps?

If the price hits your stop or target during the week do we consider the trade closed?

[Deaddog]

How much should we risk on each trade? To make it realistic I’d suggest $500.
This will determine the position size we take.
Divide the distance to your stop into $500 to come up with the number of shares you will buy. So if your stop is 50 cents away you buy 1000 shares and if it’s $2.00 you buy 250 shares.

I see Jack like to buy on a rising market. Will an hour into the trading day be enough for you to determine if you want to buy?

I’ll be entering my trades with stop limit orders. I’ll set them on the weekend.

[hags]

If I may, I'll give you three as well using a simplified system off IIC's website....

"Market Call" determines position....long or short
Top three P/E of A+ IIC's Power Rated stocks if long...
Bottom three P/E of E- IIC's Power Rated stocks if short...

Next weeks picks HS, CRMT, CBM

7% stop loss and buy at Monday's open.....

hags

[Phoenix7]

Hags

If I may, I'll give you three as well using a simplified system off IIC's website....

"Market Call" determines position....long or short
Top three P/E of A+ IIC's Power Rated stocks if long...
Bottom three P/E of E- IIC's Power Rated stocks if short...

Next weeks picks HS, CRMT, CBM

7% stop loss and buy at Monday's open.....

hags

HAGS you are in , and we will make this a 3 Card Monty , I will have my 3 picks by Sunday but we will use Monday's OPEN and go until Friday's Close . I may not buy my picks , but this will not affect the outcome since all will be MECHANICAL!

[Deaddog]

Won't hold you those Hags; Give me your picks on the weekend; Any target?

[hags]

Oops....I just realized I filtered the A+ list to end up with those top three....maybe a step by step of the simplified system....

1.) Current Market Call is "Confirmed Rally":.....go long

2.) Current A+ stocks off of IICs Power Rating List (using the handy dandy list converter as well): SYNO , ZOLL , RGR , HITK , BKI , CBM , EBIX , ASPS , ANIK , CNC , CAST , ALXN , KOG , RAM , LQDT , UAN , SPPI , DXPE , OZRK , SIMO , HS , UTEK , SXL , SLXP , CRMT , CRBC , PRIM , CFX , ROST , FAST , WWWW , SCSS , GBX , TLEO , MDF , TRAK , VOXX

3.) List copied and pasted into Finviz Screener and filtered for the following fundy criteria:
EPS Growth next 5 Years: Positive
Sales Growth past 5 Years: Positive
EPS Growth Qtr over Qtr: Positive
Sales Growth Qtr over Qtr: Positive

List reduced to: ANIK, CAST, CBM, CFX, CNC, CRMT, DXPE, FAST, GBX, HS, KOG, LQDT, ROST, SIMO, SLXP, SYNO, TRAK, UTEK, ZOLL

Sort final list via lowest P/E: HS, CRMT, CBM

Buy at the open on Monday, exit at Friday close...7% stop loss from entry....target the moon....

Summation (from IIC): "Trade the best fundys when the techs are best"....and vice versa for our experiment...

hags

[hags]

I may not buy my picks , but this will not affect the outcome since all will be MECHANICAL!

Actually I think I'm going to buy or short my picks each week...1% of the portfolio or a max. 100 shares each pick should keep my interest....

I'll double check after Friday's close and lock my three in then....any gains at the end of the year will go to charity....

....throw some live bait on the hook and join in.....

hags

[Deaddog]

I may not buy my picks , but this will not affect the outcome since all will be MECHANICAL!

So you are saying that Jacks system is strictly mechanical.
I thought I read that he had his exits in place before he placed a trade.

[Deaddog]

Actually I think I'm going to buy or short my picks each week...1% of the portfolio or a max. 100 shares each pick should keep my interest....

I'll double check after Friday's close and lock my three in then....any gains at the end of the year will go to charity....

....throw some live bait on the hook and join in.....

hags

The Dogs picks will be real money plays. Thats why I won't be using the open on monday but will be buying with a stop limit.

[skiracer]

So you are saying that Jacks system is strictly mechanical.
I thought I read that he had his exits in place before he placed a trade.

what he is saying is that he doesnt have enough confidence in Jack's picks to buy them himself but doesnt care that he posts them here where someone that doesnt understand who Jack is might buy them. It is a no win situation for both Deaddog and Hags. you can lose but you will never win. I wouldn't give one ounce of credence to this guys system by participating.

[Deaddog]

It is a no win situation for both Deaddog and Hags. you can lose but you will never win. I wouldn't give one ounce of credence to this guys system by participating.

Ski: I see where you are coming from. Pick 3 stocks and see how they act for a week is downright silly. No one trades that way.
Still, I want to see Phoenix make some kind of call with entry price, stops and targets.
It’s all fine and dandy to offer daily picks, but what good are they if you don’t act on them.
Phoenix stated “I will utilize the lessons learned from Jack's Profit Rich Trades”. I read the book and I want to see how he interpreted the material. He claims the book was worth the price. I would like to see what Phoenix thinks he actually learned for the 8 bucks he spent. Will he be able to turn what he learned into a profitable trading system?

As far as winning or losing; it doesn’t really matter. If you are going to be a winning trader the first thing you have to learn is how to lose.

[Phoenix7]

what he is saying is that he doesnt have enough confidence in Jack's picks to buy them himself but doesnt care that he posts them here where someone that doesnt understand who Jack is might buy them. It is a no win situation for both Deaddog and Hags. you can lose but you will never win. I wouldn't give one ounce of credence to this guys system by participating.

Ski I am experimenting with the system , and JACK says to trade with the market . I f something happens over the weekend to disrupt the markets , then he would probably not trade long but short.......I will not short except perhaps using INVERSE ETFS if the markets begin to fall rapidly.
If the markets were trending UP I would go long , buying AFTER 10AM and using the 8/5 OR 8% UP and OUT or 5% DOWN and OUT ......putting around 4k into each pick .......The $7 Commission per trade could be figured in .
IF the pcks seem to be good , i.e. profitable than I could say the system has merit.
Lets see what happens over the course of the week. I NOMINATE Dead Eye TO be official score keeper. Remember MONDAY'S OPEN price will be the start and Friday's Close will be the end .......HIGHEST PERCENTAGE WINS . Negative and Positive percentages will be added and NOT money amounts! NO CHANGES WILL BE ALLOWED AFTER MONDAY'S OPEN!

[Louetta]

snip

NO CHANGES WILL BE ALLOWED AFTER MONDAY'S OPEN!

Best make it Tuesday.

[Deaddog]

Ski I am experimenting with the system , and JACK says to trade with the market . I f something happens over the weekend to disrupt the markets , then he would probably not trade long but short.......I will not short except perhaps using INVERSE ETFS if the markets begin to fall rapidly.
If the markets were trending UP I would go long , buying AFTER 10AM and using the 8/5 OR 8% UP and OUT or 5% DOWN and OUT ......putting around 4k into each pick .......The $7 Commission per trade could be figured in .
IF the pcks seem to be good , i.e. profitable than I could say the system has merit.
Lets see what happens over the course of the week. I NOMINATE Dead Eye TO be official score keeper. Remember MONDAY'S OPEN price will be the start and Friday's Close will be the end .......HIGHEST PERCENTAGE WINS . Negative and Positive percentages will be added and NOT money amounts! NO CHANGES WILL BE ALLOWED AFTER MONDAY'S OPEN!

Phoenix; To experiment with a system you need more than 3 trades. I’d recommend a minimum of 25.

As for the amount of each stock you buy, I prefer not to limit the position size by a fixed dollar amount but by the amount at risk. Let’s risk $500 per position. We can make it less if you are uncomfortable with that amount.

The person who makes the most money wins. That’s what trading is all about. You don’t spend a percentage, you spend dollars.

Why couldn’t you make changes after Mondays open? Let’s try and be realistic here. Trade like you would in real life. If your pick doesn’t work out, why not change it? What if your pick hits its target or stop on Tuesday?

I would never pick a stock when the market was closed and put in an order to buy on the open. I will pick a stock to watch and if it acts the way I want at the open, then and only then, will I take a position.

You say Jacks system calls for buying after 10:00 am so the opening price would not be realistic. If you are not available to watch the market Monday, give us your criteria for entering a trade, and we can decide if you get filled.

One question I have that Jack didn’t seem to answer is what do you do with a stock that doesn’t hit its target or stop after 10 days?

Also is the 8/5 exit strategy part of Jacks system?