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September 27, 2010
Edited: September 27, 2010
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I am playing the ZACKS game differently in identifying stocks with an "Estimated Target" of +20%, or more, and striving to attain "Stock Gains" of at least 5% or better. If you view my "Analyses" you will see that I am posting the "potential reward part" but not yet posting the "potential risk" part.
I use these two numbers to obtain the Reward/Risk Ratio (RRR). If a stock has a potential to go up $4.00, and down $1.00, then the RRR is equal to 4 and thoughout the years, +4 or higher, has resulted in a nice return in the real world's markets.
I assess for the fundamentals, followed by charting, and occasionally pre-screening as well as post-screening. I use fundamentals of my own choosing to arrive at calculations for both Reward (upside potential) and Risk (drop potential).
In my comments below, I will use my Open picks, as well as my Closed picks to illustrate the benefits of paying closer attention to the RRR and Stock Gain, to put us on the path to profits, over time, EVERY time.
Though this approach may never put me at the top of the leader board, it does put me at the top in my market accounts, where it counts ... and there is NO gaming the system there.
I do hope this helps. Comments are welcome.
