We are more then just short - we suggest longs and naked options too.
In 2011 our suggestions were approximately 2/3 short and 1/3 long with over 95% of our trades resulting in a profit. Please click on the closed trades link on the left to see all the stocks and options traded this year.
Our strategy is based on our proprietary three pronged investment system and our algorithm that searches 8,000 stocks, live, tick by tick during market hours.
In order to be long or short, stocks identified by our algorithm must then meet three additional requirements. The stock has to be a long or short based on technical, fundamentals and Wall Street opinions.
Since we are so selective in our suggestions we typically only issue 8 to 10 recommendations per month, INCLUDING naked options.
2011 Closed Trades Statistics - to see actual stocks traded click the link on the left that says closed trades
Definitions
Technical --- Technical in our model means that the stock is either technically over bought or over sold. It has reached a point as to where the stock normally has a pullback from. Volume indicators and money flow have peaked.
Analysts Information --- According to analysts, the stock price has exceeded what the entire analyst group feels the stock is currently worth. Stocks often go above analyst target, especially when that group or sector is in play. Normally then there is a reversal.
Fundamentally Expensive or Undervalued--- By the way of example, we would consider a stock to be fundamentally expensive if it was trading at 50 times earnings and only growing at 15%. Conversely, we would consider a stock inexpensive if it was trading at 10 times earnings while they were growing at 20% and had not debt and plenty of cash on the balance sheet.
Our investment strategy looks to isolate stocks that have each of the above three characteristics, we feel those are the best investments we can find, and potentially the most profitable.
Positions Size:
10% max would be a full position 5% would be a half position
We would never suggest to invest more than 10% into any security. If you have $100,000 allocated to a strategy then our thoughts are that a full position would be 10% or $10,000. A half position is $5,000 or 5%. That does not mean if you have a leveraged account and have 2 to 1 leverage if you had $100,000 in cash but $200,000 on a margin basis, we would not invest more then $10,000.
DISCLAIMER: Past success does not mean future success. We cannot guarantee against losses, this site is for informational purposes as we are using our site to find investors for potentially starting fund. We do not speak with any publicly traded companies, never do a trade based on our opinion, always talk to a licensed certified financial adviser.