"Data Mining Buy on the Dip" Level 5 code
Inspired by the James Hurst principal of obtaining Maximum Gain per unit time, proprietary code has been developed that processes a complicated five levels of simultaneous criteria that operates on all stock data sets ( thousands of stocks ) and produces a list of the best break-out or buy on the dip candidates.
These results are expected to provide the best stock candidates when a local correction ( dip ) occurs in an Up-trend. Please note, this list is not a recommendation and is provided for information or entertainment only.
Below is a chart that displays this weeks Level 5 picks.
Level( 5 ) Example with Exit Criteria
Some excellent questions were asked.
This deals with money management and there are volumes written about it. There are many different flavors. Some like to take money off the table and leave the rest ride until you get stopped out. Speaking for myself, I always use many small different stock positions and just close them out when things get ugly. Buying small is my main tool for mitigating the always present stock risk.
Do you have a downside limit before getting out?
The Level Five picks should move Up, if they donít something is wrong and I would exit as soon as the price dips say 1 or 2 percent below the low point before the move Up.
I really donít have one. Conceptually the Level Five picks are short term plays, yet I have experienced a 45% straight up gain.
About "when things get ugly"
Upfront all my trades are done in a IRA so the tax consequences are deferred. Consequently I trade quite frequently. I am strongly of the opinion that the way to mitigate stock risk is to have many small stock positions. I don't care how beautiful or strong a given trend may be, it can drop 20 or more percent in a heart beat.
We really don't have a stock market any more, it is now an electronic casino with everyone at war with each other. I think you have to be a little "Nuts" to be even in this game. I have some rough rules I follow to exit. One is if a stock drop wipes out the past 10 days of gains, I'm out. Also if a stock take a big hit during the day say 15% or more I will exit or hedge with short funds.
Any of the Level 5 computer picks can suddenly be crushed by a big general market meltdown or decline. This is the everyday stock risk you take on whenever you purchase a stock. As part of my own due diligence, I always check out a stocks profile before purchasing it. I also, will not buy any stock that the profile shows has litigation or stockholder problems.
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