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How to use the Stock Market Leaders |
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Brand name, growth stock investing
has long been the one greatest secret to investment success. In
all markets. In all times. All investments have their cycles, periods
when prices rise and periods when they fall. The idea is to buy
before prices rise and sell before prices fall. Opportunities abound.
But only if you buy and if you sell the right stocks at the right
time.
This is where we come in . . . the Stock Market Leaders specializes
in finding the best leading stocks to own! It will tell you exactly what
to buy and what to sell. The Stock Market Leaders will tell you in unequivocal
terms what to buy and what to sell. The Stock Market Leaders is clear,
concise and easy to use. Yet it generates consistent profits when followed
correctly and with proper discipline.
The Stock Market Leaders is published on the second business day of every month and distributed via email or our website on the same day.
The Stock Market Leaders includes a model portfolio which contains up to
15 stocks that have passed my ERG System of investment
filters (earnings + relative strength + group strength). This system is
designed to ferret out those stocks that have a high earnings growth as
well as high relative strength & group strength. On average, we will
buy and sell 3 stocks every month.
Once we have selected our list of high ERG stocks, we run them through
our proprietary mathematical models that rank them based on their short-term
relative strength and momentum. We want to buy only those high ERG stocks
that also have high relative strength and are going up at the present time.
We have no interest in stocks that are going sideways, or worse, are going
down.
The TOP 100 stocks are then presented in each issue of the Stock Market
Leaders. Their symbol, current price, average daily volume and industry/sector
is also shown. Stocks from the top of the list are added to the model portfolio
as space becomes available, i.e., when we sell some stocks from the portfolio.
Our research and computer analysis are designed to select and choose market
leading stocks for an intermediate-term to long-term time frame. Our system
is not designed to trade intra-week or inter-day.
With the Stock Market Leaders, you can get started at any time. You don’t
have to worry about the market being too high to buy or too low. This stable
service will remain in favor over many market cycles.
The model portfolio is designed to provide a sufficient level of diversification
by investing in 15 stocks. Even as these stocks are considered cornerstone
investments, they do carry risk when you look at them on an individual
basis. However, if you have a diverse portfolio of such stocks, the volatility
is reduced significantly while the returns remain almost the same.
By dividing your risk investment capital over a large number of issues,
you are not vulnerable to decline in a single stock or a few stocks in
the same industry group. This system of diversification keeps your reward/risk
ratio substantially higher than if you were to buy only a few stocks. For
example, if you have 15 stocks in your portfolio and 3 of them decline
by as much as 25% each, your total portfolio loss is only 5%, provided
some of the other stocks in the portfolio don’t make up for this
small loss.
As a new subscriber you have three options when you start building your
portfolio using the MODEL PORTFOLIO :
1. The most aggressive option is to go ahead and buy all stocks in the
active model portfolio at their current prices. This way you'll be fully
invested instantly. Even though some of these stocks may be up since we
bought them, it doesn't mean that they cannot go up even more from these
levels.
2. The more conservative option is to buy only those stocks that have a
new buy recommendation for that month and leave the rest of your portfolio
in cash. This way, it'll take you a few months to get fully invested, but
you'll be buying each stock at the most appropriate time and price.
3. If you decide not to follow the model portfolio, you may use this list
of 100 most attractive stocks to pick and choose and build your own personal
portfolio. One strategy is to buy stocks that
appear close to the top of that list. Hold a stock as long as it in the
first 100. When a stock drops out of the first 100, sell it and then buy
again from the top of the list. This is just one way of using the
list. You may prefer to use it differently and tailor it to suit your personal
taste.
In each model portfolio, the percent allocation is listed next to each
stock. You can use this allocation information to compute the number of
shares to accommodate your personal portfolio. For example, if you have
$100,000 to invest using this methodology and the percent allocation for
each new buy is 6% then you will buy $6000 worth of each stock.
When you receive the next issue of the Stock Market Leaders, check the
model portfolio. You'll notice that the new sells in each issue are highlighted
in bold. Sell a stock when a sell signal is given. Then purchase the new
recommendations which are highlighted in italics. It is as simple as that.
Please remember ... patience and discipline are the two most important
cornerstones of successful investing. Don't expect miracles or think you'll
get rich overnight. Also, don't let the day to day market volatility and
ups and downs bother you. That is all part of investing in the stock market.
Focus on the longer-term. Look at the bigger picture. Think where you want
to be 3, 5 or 10 years from now.
Jumping around from one investment program to the next can be detrimental
to your wealth building efforts. Once you have found a good system, like
the Stock Market Leaders, try it for at least 2 years before passing judgment
on it. We at Wealthquest International hope to make your investing
profitable and enjoyable.
FREQUENTLY
ASKED QUESTIONS
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Q. When is the Newsletter Published?
A. The Newsletter is published on the second business day of the month.
Q. Do I buy at the market or
at the price listed in the newsletter?
A. When you get the newsletter and decide to purchase a stock, either buy
it at the market or use a limit order. When using a limit order, check
the current bid/ask and place your order appropriately. In some cases you
will get a worse fill than the price listed in the newsletter and in other
cases you will get a better fill. Over time, your fills should average
out.
Q. Do you use stops or time the
market?
A. No market timing or stops are used in the Stock Market Leaders. The
model portfolio remains fully invested 100% of the time. If you wish to
use stops, you must be responsible for determining at what price you wish
to implement them. These stops would be based upon your own personal tolerance
for risk.
Q.
My stock
is down
6 points
in 2
days.
Are you
going
to sell
the stock?
A. We don't sell a stock based solely on a few good or bad days of trading.
Therefore, we will not issue a buy or sell signal on individual stocks
between issues. Our research and computer analysis are designed to select
and choose growth stocks for at least a one month period. Our system is
not designed to trade intra-day or intra-week.
Q.
My stock
is up
200%.
Should
I take
profits
and sell?
A. No. Wait till the next issue comes out. If we deem it to be a sell,
it'll be sold. But till we ask you to sell it, don't sell just because
it is up substantially.
Q.
A
certain
stock
is
down
5
points.
Are
you
still
recommending
it?
A. Yes. Recommendations on a stock can only change once a month. If a stock
is not rated a sell, then it is rated a buy.
Q.
Why
are
you
recommending
or
buying
XYZ
stock?
A. The answer to a question like this is always the same -- "because
our computer models rank it as an excellent buy at this time."
Q.
How
do
I
use
the
list
of
top
100
stocks
ranked
in
order
of
attractiveness
based
on
relative
strength?
A. If you decide not to follow one of our model portfolios, you may use
the list of 100 most attractive stocks to pick and choose and build your
own personal portfolio. One strategy is to buy stocks that appear close
to the top of that list. Hold a stock as long as it is in the first 100.
When a stock drops out of the first 100, sell it and then buy again from
the top of the list. This is just one way of using the list. You may prefer
to use it differently and tailor it to suit your personal taste.
Q.
A
stock
does
not
appear
in
the
first
100.
Why
are
you
are
still
holding
it
in
the
model
portfolio?
A. We do not necessarily sell a stock in the model portfolio when it falls
out of the top 100. Our sell discipline is such that we only sell a stock
when it falls into the lower half of our rankings. Remember, the ranking
provided in the newsletter is only a partial listing of almost 500 stocks
we rank.
Q.
I
expect
the
market
to
have
a
correction.
Should
I
sell
my
stocks?
A. Since we are not trying to time the market and have a long-term time
horizon (5 years or more), we intend to remain fully invested at all times.
The stocks in our rankings and model portfolios are very strong both fundamentally
and technically. Even if they do go down with the general market, they
are also likely to rebound faster.
Q.
Can
I
call
you
with
questions?
A. We are not in a position to give individualized investment advice. The purpose of the newsletter is to tell you when to buy and when to sell. The subscription price does not include a personal consultation. You should consult a financial planner for your specific needs. However, if you have specific questions about the newsletter itself, please email it to us support@123wealthquest.com or visit http://www.123wealthquest.com/wq/support.jsp and we will try to answer it promptly.
Disclaimer:
Neither
the
Stock
Market
Leaders
nor
Wealthquest
International
Inc.,
or
any
of
its
owners,
officers,
employees
or
associates
(who
may
or
may
not
hold
positions
in
the
securities
mentioned
herein)
will
be
liable
for
losses,
including
losses
of
profit
or
any
consequential
damages
resulting
from
the
use
of
or
the
inability
to
use
this
service.
The
Stock
Market
Leaders
is
intended
for
experienced,
sophisticated
investors
who
are
thoroughly
familiar
with
all
the
risks,
costs,
mechanics,
tax,
and
legal
consequences
of
investing.
All
subscribers
or
users
of
the
Stock
Market
Leaders
agree
to
take
full
responsibility
for
their
investment
decisions
and
any
losses.
Investments
are
at
your
own
risk.
Profits
are
not
guaranteed
and
losses
are
possible.
Past
performance
does
not
guarantee
future
results.
How to
make sure you get our e-mail.
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