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StocksInDemand.com, SID system for Picking Stocks Like the Pros

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Presentation on theme: "StocksInDemand.com, SID system for Picking Stocks Like the Pros"— Presentation transcript:

1 StocksInDemand.com, SID system for Picking Stocks Like the Pros
30 Days to Stock Market Success COPYRIGHT© 2015 BY THOMAS K LLOYD. ALL RIGHTS RESERVED StocksInDemand.com, SID system for Picking Stocks Like the Pros

2 Day 1 – Select SID or Some Other System
SELECT A SYSTEM TO DO ALL THE WORK SYSTEM GIVES BUY SIGNALS AND RATES STOCKS FUNDAMENTAL, TECHNICAL AND TIMING BUY SIGNALS COMPUTES IMPLIED 12-MONTH RATE OF RETURN RATES STOCKS FROM BEST TO WORST PICK THE BEST, DO YOUR DUE DILIGENCE

3 Day 2- Identify the Most Important Signals
LEARN THE SYSTEM IDENTIFY THE MOST IMPORTANT LONG TERM SIGNAL, SID GRADE THE MOST IMPORTANT SHORT TERM SIGNAL, DEMAND/SUPPLY UNDERSTAND HOW THE BUY SIGNALS CHANGE AND WHY UNDERSTAND HOW IMPLIED RETURN CHANGES AND WHY LEARN THE RULES FOR TRADING, TRIGGER REPORT LEARN THE RULES FOR INVESTING, SID AND IMPLIED RETURN

4 Day 3 – Buy Ten Stocks on Paper to Diversify Risk
SET UP A PORTFOLIO OF TEN STOCKS USE BUY LISTS FROM YOUR SYSTEM, SID, RISK AVERSE, MP, PM PICK THE BEST OF THE S&P 500 TO BEAT THE INDEX PICK THE BEST OF THE DOW 30 TO BEAT THE INDEX PICK THE BEST STOCKS OF A PRO, PROPICK1 DO YOUR DUE DILIGENCE, YAHOO, FINVIZ, NASDAQ.COM CHECK WHAT THE PROS ARE DOING WITH YOUR STOCK

5 Day 4 – Practice Trading on Paper
LEARN TRADING USING 10 STOCKS IN MODEL PORTFOLIO PRACTICE TRADING ON PAPER FOR 30 DAYS INVESTOR CAP ON, USE SID GRADE TO PICK STOCKS TRADING CAP ON, USE DEMAND/SUPPLY TO TRADE USE TRADING REPORTS LIKE TRIGGER, OVERBOUGHT, SAR USE TIMING SIGNAL AND CHANGE IN THIS SIGNAL USE REVERSALS IN SUPPLY OR DEMAND

6 Day 5 -Your Due Diligence Before Buying
TAKE 15 MINUTES TO CHECK ANY STOCK GIVEN TO YOU BY ANYONE WARREN BUFFETT – ONLY BUY WHAT YOU UNDERSTAND FINVIZ.COM TO CHECK FUNDAMENTALS, CHART, ANALYST TARGETS YAHOO.COM TO CHECK EARNINGS DATE, DIVIDEND, TARGETS NASDAQ.COM TO CHECK ANALYST RECENT EARNINGS UPGRADES NASDAQ.COM TO CHECK WHAT PORTFOLIO MANAGERS ARE DOING NASDAQ.COM FOR CONSENSUS AND HIGH ANALYST TARGETS

7 Day 6 – Most Important – Your Sell Discipline
PORTFOLIO MANAGER’S GREATEST WEAKNESS SMALL INVESTOR’S BIGGEST ADVANTAGE IS INSTANT SELLING EVERYONE HAS A GOOD BUY DISCIPLINE SELL DISCIPLINE DETERMINES THE BIG WINNERS vs LOSERS SID SELL DISCIPLINE COLOR CODED CHART UPTREND IN 50 AND 200 DAY SELL DISCIPLINE SELL DISCIPLINE MUST BE AUTOMATIC AND QUANTITATIVE

8 Day 7 - Check the Charts Everyday
WHILE YOU ARE ON A CHECK OUT LINE OR WATCHING TV USE FINVIZ.COM, STOCKCHARTS.COM, YAHOO.COM YOU DO NOT HAVE TO BECOME AN EXPERT CHARTIST OR ANALYST PICK A SYSTEM THAT PROVIDES AN EXPERT CHARTIST OR ANALYST YOU KNOW HOW TO PICK AN EXPERT MECHANIC, HAIR STYLIST THE EXPERTS DO ALL THE WORK FOR YOU, BLAME THEM IF WRONG THE MARKET CHART WILL TELL YOU WHEN TO SELL EVERYTHING

9 Day 8 – Pick High Implied Returns
10% OR MORE TO BEAT THE INDEX 15% OR MORE TO REDUCE PORTFOLIO TURNOVER WITH SID GRADE = 80 OR MORE TO BEAT THE INDEX WITH SID GRADE = 85 OR MORE TO REDUCE TURNOVER VERY HIGH RETURNS ARE VERY RISKY VERY LOW RETURNS WITH HIGH SID = SPECIAL SITUATION VERY HIGH RETURNS WITH LOW SID = SLOW ANALYST DOWNGRADE

10 Day 9 – Pick Fundamental Buy Signals
MUST ALWAYS HAVE A FUNDAMENTAL BUY SIGNAL OVERVALUED GROWTH TSLA & NFLX WON’T HAVE IT FUNDAMENTAL BUY + SID 80 TO 100 = BUY FUNDAMENTAL BUY + SID 61 TO 79 = HOLD FUNDAMENTAL BUY + SID 60 AND BELOW = SELL PORTFOLO MANAGERS BUY LIST = FUNDAMENTAL BUY WATCH OUT FOR VALUE TRAPS

11 Day 10 – Pick Technical Buy Signals
KEY TO BEATING THE FUNDAMENTAL PORTFOLIO MANAGERS FUNDAMENTALS + TECHNICALS = BEAT THE INDEX TECHNICALS = SELF FULFILLING PROPHECY TO BEAT THE INDEX ONLY STAY IN STOCKS THAT ARE OUTPERFORMING THE INDEX PORTFOLIO MANAGERS CANNOT DO THIS THE SYSTEM READS THE CHART FOR YOU THE CHARTS REFLECT THE MOST EXPENSIVE RESEARCH

12 Day 11 – Pick Timing Buy Signals
SMALL INVESTORS BUY HIGH AND SELL LOW PROFESSIONALS BUY LOW AND SELL HIGH SMALL INVESTORS NEED TIMING DISCIPLINE LIKE THE PRO BUY ON WEAKNESS, SELL INTO STRENGTH, HARD-WIRED AS MARKET MAKES NEW HIGHS, PROS ARE SELLING LOSERS AS MARKET IS MAKING NEW LOWS PROS ARE BUYING WINNERS TRADERS USE THE TIMING SIGNAL TOO

13 Day 12 – Pick High SID Grades, First Step
LOOK AT THE SID GRADE FIRST, BEFORE OTHER SIGNALS IT INCLUDES ALL THE BUY SIGNALS AND IMPLIED RETURNS HIGH SID SCORES = STOCKS OUTPERFORMING THE INDEX LOW SID SCORES = QUESTIONABLE BUY SIGNALS FAILING SID SCORES = STOCKS TO AVOID SID SCORE ELIMINATES EMOTIONS SID SCORE SHOWS WHAT THE PROS ARE DOING

14 Day 13 – Pick Stocks in Uptrends
PICK STOCKS THAT HAVE 50 AND 200-DAY UPTRENDS SICK CROSS = 20-DAY BREAKS BELOW THE 50-DAY DEATH CROSS = 50-DAY BREAKS BELOW THE 200-DAY LOOK FOR LONG UPTRENDS WITH ROUNDING TOPS TO SELL LOOK FOR LONG DOWNTRENDS WITH ROUNDING BOTTOMS TO BUY SID SYSTEM READS THE CHART FOR YOU LOOK FOR UPTRENDS IN RELATIVE STRENGTH

15 Day 14 – Pick Outperforming Stocks
RELATIVE STRENGTH = PRICE MOVEMENT RELATIVE TO THE INDEX POSITIVE RELATIVE STRENGTH = OUTPERFORMERS STAY IN POSITIVE STOCKS = BEAT THE INDEX IT IS A SELF FULFILLING PROPHECY PORTFOLIO MANAGERS HAVE TO SELL UNDERPERFORMERS THEY HAVE TO BUY OUTPERFORMERS RELATIVE STRENGTH TELLS WHAT THEY ARE BUYING/SELLING.

16 Day 15 – Law of Demand & Supply = Price
MOST DIFFICULT LESSON TO LEARN FOR NOVICES FIRST MYTH: FUNDAMENTALS DETERMINE PRICE SECOND MYTH: THE MARKET IS EFFICIENT = CORRECT PRICE TRADERS LOVE VOLATILE/INEFFICIENT MARKETS DEVIATION FROM THE MEAN: PRICE RETURNS TO THE AVERAGE APPLE REPORTS GOOD EARNINGS AND PRICE GOES DOWN MARKET ALWAYS LOOKS AHEAD TO DETERMINE TODAY’S PRICE

17 Day 16 – Analysts Create Demand/Supply
RECOMMENDATIONS, FORECASTS, TARGETS, ETC ALL OF THIS IS ALREADY IN THE PRICE OF THE STOCK SMALL INVESTOR IS THE LAST TO HEAR THIS NEWS PROS REFUSE TO PAY FOR ANYTHING IN THE MEDIA CHARTS SHOW WHEN PROS GET THE RESEARCH USE CHARTS TO LEVEL THE PLAYING FIELD SID RATING TELLS WHAT THE PROS ARE DOING

18 Day 17 – Fundamentals Create Demand/Supply
PORTFOLIO MANAGERS USE COMPUTERS TO PICK STOCKS THEY USE ANALYST RESEARCH TO DO THEIR DUE DILIGENCE ANALYST TARGETS ARE MORE IMPORTANT THAN RECOMMENDATION ANALYSTS KNOW ALL FACTORS AFFECTING THE COMPANY EXCEPT SECRET NEGOTIATIONS ON MERGERS NON-FUNDAMENTAL FACTORS AFFECTING PRICE EVENTUALLY UNKNOWN FORCES BECOME KNOWN

19 Day 18 - Company Creates Demand/Supply
COMPANY ISSUED PRESS RELEASES, OR GOLF COURSE TALK NEW CFO OR NEW CEO OR NEW PRODUCTS LARGE COMPANIES HAVE NUMEROUS PRESS RELEASES DAILY COMPANY BUYS ITS OWN STOCK CREATING DEMAND COMPANY INSIDERS BUY STOCK CREATING DEMAND BIOTECH COMPANY ANNOUNCES BLOCKBUSTER DRUG COMPANY GETS ANALYSTS TO MAKE ANNOUNCEMENTS ON EPS

20 Day 19–Economic News Creates Demand/Supply
EXOGENOUS FACTORS OUTSIDE THE COMPANY THE 2008 MARKET CRASH FROM THE MORTGAGE BUBBLE EMPLOYMENT, INFLATION, PRODUCTION, INTEREST RATES NATURAL DISASTERS, TERRORIST ATTACKS INCREASED EMPLOYMENT AND WAGES = DEMAND INCREASED INTEREST RATES, UNEMPLOYMENT = SUPPLY PRICES UP = GOOD NEWS, PRICES DOWN = BAD NEWS

21 Day 20 – World News Creates Demand/Supply
ANNOUNCED NEWS IS ALREADY IN PRICE ONLY TRUE SURPRISES ARE NOT IN PRICE AND THESE ARE FEW GREEK DEBT CRISIS, OR SPAIN OR PORTUGAL OR IRELAND EURO DROPPING AND THE DOLLAR GOING UP HURTS EXPORTS TERRORIST ATTACKS SUCH AS 9-11 ON THE USA MUST HAVE A SELL STRATEGY FOR NEGATIVE SURPRISES MUST HAVE A BUY STRATEGY FOR NEGATIVE SURPRISES

22 Day 21 – Demand/Supply Dictates Price
NEED TO MEASURE DEMAND/SUPPLY, 20-DAY D/S CHART, TRADERS LONGER TERM 20-DAY SID CHART, FOR INVESTORS YOU WILL ALWAYS UNDERSTAND WHAT PRICE IS DOING BUT YOU MAY NOT UNDERSTAND WHY, BUT YOU DON’T CARE VALUE LINE PROJECTS PRICE OUT 2-3 YEARS “NEVER FIGHT THE TAPE” OR THE CHART OR DEMAND/SUPPLY “WHY IS PRICE GOING DOWN?” A MEANINGLESS QUESTION

23 Day 22 – How to be a Contrarian
ALL PROS ARE CONTRARIANS, BUY ON WEAKNESS IT IS COUNTER INTUITIVE, NOT EASILY LEARNED BY INVESTORS HAVE A PRE-SET BUY AND SELL DISCIPLINE WHEN THE MARKET IS MAKING NEW HIGHS, PROS SELL WHEN THE MARKET MAKES NEW LOWS, PROS BUY SMALL INVESTOR NEEDS A SYSTEM TO MAKE HIM A PRO SYSTEM PUTS EVERYTHING ON AUTOMATIC, NO EMOTIONS

24 Day 23 – How to Rotate into Winners
SECTOR ROTATION IS A PROFESSIONAL STYLE OF MANAGEMENT ROTATE INTO THE BEST STOCKS IN THE BEST INDUSTRIES ROTATE INTO THE BEST STOCKS IN HEALTHCARE ROTATE INTO THE BEST STOCKS IN FINANCIALS MUST HAVE A GOOD SELL DISCIPLINE TO DO THIS CHAIKIN SYSTEM IS EXCELLENT AT THIS READ “SUCCESFULL STOCK SIGNALS”, MY BOOK

25 Day 24 – How to Diversify to Reduce Risk
SMALL INVESTORS USUALLY IGNORE RISK TO PICK FUNDS SMALL INVESTORS PICK WINNING MUTUAL FUNDS, HIGH RISK EVERYONE KNOWS HIGH RETURNS = HIGH RISK 10 OR MORE STOCKS TO DIVERSIFY, REDUCE RISK BEATING THE INDEX WITH DIVERSIFIED LIST WATCH OUT FOR HIGH BETA STOCKS IN A CRASH SMALL INVESTOR AVOIDS LOSING INDUSTRIES, PROS CANNOT

26 Day 25 – How to Make a Killing in the Markets
MAKE A FORTUNE WHEN MARKETS ARE INEFFICIENT, PANIC MODE THE OLD RULE WAS TO MAKE MARKETS EFFICIENT THE NEW RULE IS TO MAKE MARKETS INEFFICIENT AS POSSIBLE THE PROS BUY ON PANIC SELLING, LIKE WARREN BUFFETT AND THEY SELL INT0 “IRRATIONAL EXUBERANCE” BUYING COPY WARREN BUFFETT’S CONFIDENCE USE A SYSTEM LIKE SID TO GIVE YOU CONFIDENCE

27 Day 26 – How to Reject News and Follow Price
ALL OF THE NEWS IS ALREADY IN PRICE ONLY REAL AND EXTREME SURPRISES ARE NOT IN PRICE ONLY LISTEN TO REAL SURPRISES, FORGET ALL THE OTHER NEWS REMEMBER IF IT IS IN THE NEWS THE PROS WON’T PAY FOR IT PRICE WILL TELL YOU IF THE NEWS IS GOOD OR BAD THERE IS NO LOGIC TO PRICE MOVEMENTS, SO JUST FOLLOW THEM THE MARKET IS SMARTER THAN YOU AND THE ANNOUCED NEWS

28 Day 27 – How to Play with the Pros
EVERYONE WATCHES THE PROS PLAY SPORTS NOBODY WATCHES THE PROS PLAY ON WALL STREET WATCH THE PROS PLAY THE GAME ON NASDAQ.COM OR WATCH THEM IN INVESTOR’S BUSINESS DAILY OR WATCH THEM IN SID SIGNALS OR WATCH THEM IN THE CHARTS, READ MY BOOK “SUCCESSFUL STOCK SIGNALS” SHOWS THE PROS PLAYING THE GAME

29 Day 28 – How to Make Money Stock Investing
THE KEY WORD HERE IS “INVESTING” vs “TRADING” TRADERS MAKE MONEY WITH GUTS AND CONTRARIAN INSTINCTS INVESTORS MAKE MONEY BY PICKING THE NEXT IBM, HPQ, GE, APPLE ANYONE OF THESE COULD HAVE MADE ME A MULTI MILLIONAIRE INITIAL PUBLIC OFFERINGS, IPOs, ARE THE BIRTH OF STOCKS DON’T MISS THE NEXT APPLE OR GOOGLE OR NETFLIX OR FACEBOOK IF YOU MISS THE IPO, IT IS NEVER TOO LATE FOR A 50-YEAR RUN

30 Day 29 – How to Make Money Trading Stocks
FORGET ALL YOU LEARNED ABOUT INVESTING WHEN TRADING TRADERS KNOW HOW TO FRONT-RUN MARKET EMOTIONS TRADERS HAVE A TRIGGER FINGER, SELL INSTANTLY, QUICK PROFIT READ THE CHART AND FRONT RUN AHEAD OF BIG BUYERS/SELLERS TRADERS PLAY MINUTE BY MINUTE CHANGES IN DEMAND/SUPPLY IF YOU READ MY BOOK AND CAN READ CHARTS, PLAY THIS GAME REMEMBER “TRADERS DIE BROKE” BECAUSE OF RISK

31 Day 30 – How to be Successful in Stocks
FIRST, FIND A SYSTEM TO PICK STOCKS BY THE NUMBERS SECOND, STOP LISTENING TO NEWS, AVOID MISINFORMATION THIRD, PRACTICE ON PAPER UNTIL YOU BECOME SUCCESSFUL FOURTH, AVOID EMOTIONAL DECISIONS, FOLLOW THE RULES FIFTH, HAVE A STRONG BUY AND SELL DISCIPLINE, AUTOMATIC SIXTH, GO TO CASH IF THE MARKET STARTS TO CRASH SEVENTH, BUY AFTER A STOCK OR MARKET CRASH, ALL-IN


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