Meanwhile, I will use this blog to post some notes to myself as well.
INVESTOR RULES (from Investors.com)
If all of IBD's 20 rules are carefully followed (not just the ones you like), your investment results should materially improve:
1. Consider buying stocks with each of the last three years' earnings up 25%+, return on equity of 17%+ and recent earnings and sales accelerating.
2. Recent quarterly earnings and sales should be up 25% or more.
3. Avoid cheap stocks. Buy higher quality stocks selling $15 a share and higher.
4. Learn how to use charts to see sound bases and exact buy points.
5. Cut every loss when it’s 8% below your cost. Make no exceptions so you can always avoid huge, damaging losses. Never average down in price.
6. Follow selling rules on when to sell and take profit on the way up.
7. Buy when market indexes are in an uptrend. Reduce investments and raise cash when general market indexes show five or more days of volume distribution.
8. Read IBD's Investor's Corner and Big Picture columns to learn how to recognize important tops and bottoms in market indexes.
9. Buy stocks with a Composite Rating of 90 or more and a Relative Price Strength Rating of 85 or higher in the IBD SmartSelect® Corporate Ratings.
10. Pick companies with management ownership of stock.
11. Buy mostly in the top six broad industry sectors in IBD’s New High List.
12. Select stocks with increasing institutional sponsorship in recent quarters.
13. Current quarterly after-tax profit margins should be improving, near their peak and among the best in the stock's industry
14. Don’t buy because of dividends or P-E ratios.
15. Pick companies with a superior new product or service.
16. Invest mainly in entrepreneurial New America companies. Pay close attention to those with an IPO in the past 8 years.
17. Check into companies buying back 5% to 10% of their stock and those with new management.
18. Don’t try to bottom guess or buy on the way down. Never argue with the market. Forget your pride and ego.
19. Find out if the market currently favors big-cap or small-cap stocks.
20. Do a post-analysis of all your buys and sells. Post on charts where you bought and sold each stock. Evaluate and develop rules to correct your major past mistakes.
Due to heavy workload, there is currently no new activities on my portfoliio. This week's gain put me closer to the green, but all in all, I am still anticipating a crash. From where the market was last week, it looks like we have made a decent come back. However, on the overall graph, it could use another drop or two to be where a good buy is located. Again, because I am not yet an expert on these things, I could be looking the wrong way.
I didn't even realize that this week's gain put me this much closer to the green. I was down more than 10% at the end of last week. Though optimistic, I still plan to sell some with GOOD ENOUGH gains, keep the cash handy and when the market truly hit the bottom, I then can get back in at better positions.
As for the $500, it is still in solid cash... I don't feel like buying anything at this point. The market is swinging so much, and the Fed is still quiet about things, I'll just hold on to the zero gain/loss for now. We'll have a lot to buy with that money soon.
Due to heavy workload, there is currently no new activities on my portfoliio. This week's gain put me closer to the green, but all in all, I am still anticipating a crash. From where the market was last week, it looks like we have made a decent come back. However, on the overall graph, it could use another drop or two to be where a good buy is located. Again, because I am not yet an expert on these things, I could be looking the wrong way.
I didn't even realize that this week's gain put me this much closer to the green. I was down more than 10% at the end of last week. Though optimistic, I still plan to sell some with GOOD ENOUGH gains, keep the cash handy and when the market truly hit the bottom, I then can get back in at better positions.
As for the $500, it is still in solid cash... I don't feel like buying anything at this point. The market is swinging so much, and the Fed is still quiet about things, I'll just hold on to the zero gain/loss for now. We'll have a lot to buy with that money soon.
After I sold off my NRMX and TXCO, I proceeded to buy PRRR (see yesterday's post), and today, used remaining funds to buy 60 shares of AEO (-1.60%, 22.81) at 23.15. With its price being close to its 52 week low (21.07), I am optimistic that this would be a decent holding through recession.
Yes, I did mention recession, and with certainty. With the Dow surged past 14,000 a month ago, it is beginning to make its way down. Nobody can really predict whether it would be hard or soft landing, but few would argue that it is definitely moving downward. And even with big institutions moving their money elsewhere, like commodities, I do feel more comfortable putting my money into some companies whom I can easily walk into their stores and see its business operating on day-to-day basis.
Worst case scenario, I will lose 100% maximum, but the gain can be 10, 50, 100, 200, or even 1000% right? And talk about recession, I better start saving up and get ready for that big SALE event!
P.S. NRMX moved up 12% today (+12.61%, 3.93). This is one wild ride folks! Some insiders might have seen Bellini's new infomercial on his new supplement product! Also, PRRR was up (+11.11%, 4.80), but my purchase price was 4.85! Unsure whether to buy or not, I did not place the order until closed yesterday. Order was executed first thing in the morning, but already too late.
Bought 100 shares of PRRR @ 4.32 (will confirm after order filled).
What the heck is that PRRR? Pioneer Railcorp (PRC) is a railroad holding company that operates in two business segments: railroad operations and railroad equipment leasing. Railroad operations are provided by the Company's wholly owned short line railroad subsidiaries whose rail system provides shipping links for customers along its routes and interchanges with five major railroads, Burlington Northern Santa Fe Railroad (BNSF), CSX Transportation (CSX), Canadian National Railway Company (CN), Norfolk Southern Railway (NS) and Union Pacific Railroad (UP). In addition, the Company's railroad subsidiaries have interchanges with two smaller railroads, the Kansas City Southern Railway (KCS) and the Arkansas & Missouri Railroad (AM). PRC's rail system is primarily engaged in carrying freight. The Company's railroad equipment leasing operation provides locomotives, railcars and other railroad-related vehicles and equipment to its operating railroad subsidiaries.
BTW, this holding has nothing to do with my $500 tournament. This is for my Roth IRA and I am looking for something with steady growth and high dividends. Waiting to add CVX(+1.83%, 86.83), PCG (+0.83%, 44.87), or JWN (+4.49%, 34.50) after seeing how the market responds to the big jump today - closed: 13307.09 change: +319.54 (+2.46%)
P.S. At this moment, I might as well buy some AEO (+5.36%, 23.18) when market opens tomorrow.
Tomorrow will be the day my $500 is in place for the take-off!
Art (my brother) and I have decided to put our hard-earned $500 into doing whatever for one year period, and see who finish with better number. It is simple as that. We can go buy stocks (intended to), go to Casino (likely to happen too), adopt a cat, keep it in wallet, or buy lottery - regardless of what we do, the winner must finish with higher amount of money than the loser.
