8 Easy Steps to Picking Stocks
Aka: The Lazy Way to Make Money in the Stock Market
I’ve feature somewhere the most pricey business advice is ofttimes free. Maybe it was metropolis North. solon most him later. Anyway, with that caveat, here’s what I’ve been doing.
I’ve proven whatever hit systems, feature whatever books, hunting for the Holy Grail of hit picking. Some work, most don’t, whatever order likewise such effort, whatever likewise such risk.
But here’s digit I got discover of a book, Straight Talk About Stock Market Investing, I conceive it was titled that. Written by a man study Statterly. He’s got whatever systems, but the digit beneath is digit I’ve been using, and the results are not likewise shabby.
It’s simple, takes rattling lowercase work. I call it the DOW Stock Pick 6. It’s a contrarian method, that picks discover of souvenir stocks on the Dow 30.
Step 1. Go to the Dows of the Dow site. http://www.dogsofthedow.com.
Click on the YTD, then utter on the Yield of underway assemblage to variety by Highest Yield to lowest. For example, for today, Verizon would be at the top, filmmaker at the bottom.
Step 2: Take state of the crowning 6 stocks with the maximal yield.
Step 3: Go to the MSN Money site: http://moneycentral.msn.com/investor/home.asp. Put in the prototypal hit symbolisation of the fivesome to intend a quote. Scroll downbound the mitt lateral to OWNERSHIP. Click on that to intend the Ownership Activity, Total Positions. This is the sort of Institutional owners, commonly around 1000.
Step 4: Do that for every 6 stocks. Pick the digit with the minimal sort of Institutional Owners (IO).
Step 5: To recap: You today hit 1 garner and 5 in the group. Add the 7th maximal Yield hit to your assemble of 5, then garner 1 with the minimal IO. That module provide you hit garner #2.
Step 6: Repeat Step 5 until you hit a amount of 6 stocks. Congratulations. These are your Dow Stock Pick 6.
Step 7: Buy coequal note amounts of every 6 stocks. I.E. if you hit most $3000, acquire $500 of apiece stock. Don’t block most the broker commissions.
Step 8: Hold for digit year. Sell and repeat.
That’s it.
And today here’s my action accumulation with this system.
On Dec. 21, 2005, I purchased the mass stocks and how they are doing:
* AA +.15 %
* CAT +10 %
* DD -2.5 %
* GM +59 %
* HON +.47 %
* MCD -3 %
On June 6, 2006, I purchased added 6 stocks. Here’s the results for those:
* DD -5 %
* GM +26 %
* MO +12 %
* MRK +22 %
* T +11 %
* VZ +6 %
Happy hit picking.
J. Lee has been composition for http://mysearchformeaning-money.blogspot.com since July 2006.
Tags: easy way, investing, lazy way, picking stocks admin on April 25th, 2008 Filed under investing-ideas. |
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