Good Penny Stocks – Something New

Written by on October 29, 2009

I know I’ve mentioned this before, but I wanted to update my earlier post about penny stocks. Even though the market has been in a downdraft the past couple of days, the picks I am getting from PennyStockProphet have been doing quite well. This is an excellent way to find some good penny stocks.

I know this is a bit more aggressive than the systems we usually post on this site and that I normally talk about in the blog, but with the 60-day guarantee, you can try PennyStockProphet and do paper trading for a few weeks before getting your feet wet and making some money making trades. Worth a try, at least in my opinion. Click here to check out PennyStockProphet.

Categories: Currently Recommended, Timing Signals Blog - Tags: ,

Mechanical Stock Trading Systems – Staying the Course

Written by on October 28, 2009

When the market has a few down days (especially severe down days – and several in a row), it is easy to get discouraged and bail out of stock trading systems that have proven themselves in the past. Why? Because, stock trading creates high levels of emotions, both good and bad. And, sometimes the down-side emotional roller coaster just seems to dominate the stock trading game.

Our systems are 100% mechanical – designed to take the emotional weight out of stock trading. But they only do this successfully if we don’t fight the systems and don’t take the day to day (and even week to week sometimes) fluctuations to heart. Slow and steady wins the race goes the old saying. If the more aggressive systems seem to hard to follow, the monthly systems provide more steady returns with more risk-avoidance built in.

Categories: Mechanical Stock Trading Systems, Timing Signals Blog - Tags:

Technical Analysis of Stock Trends

Written by on October 25, 2009

Hidden under the hood of our ETF trading signals are sophisticated mechanisms that measure the probability that a given ETF will rise this week, this month, or over other near term periods using technical analysis of stock trends. Our database of stock trends goes back, in some cases, several decades. For newer ETFs and stocks, our look back period is shorter, but is still measured in years.

Technical analysis stock trends is the heart of our ETF rotation and timing systems. For most of the ETF weekly and monthly systems, the prediction of future performance is based on an analysis of recent performance (mid term) along with a factor for the very short term performance. For many of the systems, the mid term performance is added to the inverse of the very recent performance. The ETFs are then ranked based upon the number derived from that formula. The inverse of the recent performance is used because of the observation that the best time to buy is often when an ETF is in a strong uptrend but has suffered a near-term dip in performance. The system favors the strongest up-trending ETF that has a modest dip within the recent period. After ranking the performance of all the ETFs in the pool of possible investment vehicles for the system, the system simply chooses the number of the top ETFs that the particular system trades.

Most of the systems have one or two other elements of technical analyis of stock trends – such as a longer term look back period with a sophisticated moving average crossover component that prevents the system from remaining in equity ETFs if the overall market is remarkably weak, and other pieces of the technical analysis puzzle that we will describe in another post.

Categories: Technical Analysis of Stock Trends - Tags: ,

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