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Discover The Amazing Power Of Point & Figure Charting
Weekly Memos on Stock Investing and Portfolio Management
Weekly memo for 10-07-2011
Weekly Memos
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Topics covered include chart patterns, portfolio management, investor psychology and case studies from my actual experiences with point and figure charts of relative strength.
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A complete set of these investment memos is included on the DVD
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Memos sent to subscribers weekly and memos are limited to one page
A listing of recent memos follows with links in blue
Market memo for 10-07-2011 - A Systematic Search For Good Stocks To Buy
Market memo for 09-30-2011 - TEPLX - A Fund Relic Or A New Opportunity
Market memo for 09-23-2011 - I Want To Buy Stocks Where The Other Buyers Are Losing
Market memo for 09-16-2011 - Stocks In Long-Term Trading Ranges
Market memo for 09-10-2011 - When The Music Stops
Market memo for 09-03-2011 - Good Investment Performance - An Illusive Goal
Market memo for 08-27-2011 - The Use Of Time Cycles In The Stock Market
Market memo for 08-19-2011 - The Case Of Digital Equipment
Market memo for 08-12-2011 - Can Historical Comparisons Of Stock Market Volatility Still Be Valid?
Market memo for 08-05-2011 - GMCR - A Study In Randomness
Market memo for 07-29-2011 - What Does A Downgrade Really Mean?
Market memo for 07-22-2011 - Always Get A Second Opinion Before You Invest
Market memo for 07-08-2011 - A Trader's New Year's Resolution
Market memo for 07-01-2011 - There Are Three Types Of Randomness
Market memo for 06-24-2011 - Why Reversion To The Mean Doesn't Always Work
Market memo for 06-17-2011 - Beware Reverse Merger Stocks
Market memo for 06-10-2011 - The Ideal Time To Buy A Stock
Market memo for 06-03-2011 - The Market Dynamics Relative Strength Screens
Market memo for 05-27-2011 - China Also Has Stock Frauds
Market memo for 05-20-2011 - Using The Market Dynamics Save Feature
Market memo for 05-13-2011 - The Market Dynamics Recommended List
Market memo for 05-06-2011 - The 45-Degree Bearish Resistance Line
Market memo for 04-28-2011 - An Interesting Study In Randomness
Market memo for 04-21-2011 - The 45-degree Bullish Support Line
Market memo for 04-15-2011 - The Stock Market Runs On Money
Market memo for 04-08-2011 - Upper Channel Boundary
Market memo for 04-04-2011 - Stocks In Long-Term Trading Ranges
Market memo for 03-25-2011 - A Major Base And Upside Breakout
Market memo for 03-18-2011 - Don't Fight The Tape
Market memo for 03-11-2011 - Late To The Party
Market memo for 03-04-2011 - Contrary Opinion - A Source Of Much Confusion
Market memo for 02-25-2011 - A Second Opinion On Analyst's Investment Ratings
Market memo for 02-18-2011 - Don't Wait For The Top To Sell
Market memo for 02-11-2011 - Now Is Not The Time To Chase The Hot Stocks
Market memo for 02-04-2011 - Long-term Charts Are A Good Tool For Investment Decisions
Market memo for 01-28-2011 - An Overly Crowded Trade usually Ends In Disaster
Market memo for 01-21-2011 - How Does An Overly Crowded Trade Develop
Market memo for 01-14-2011 - The Last Bear Market Did Not Follow A Random Walk
Market memo for 01-07-2011 - Stock Market Tides And Noise Traders
Investing as a Business
You Should Manage The Portfolio Like A Business
Your Stocks are Your Employees
They Have A Job To Do!
You should manage your portfolio as you would manage a business. Your stocks represent your employees. They work for you and only through them can your business accomplish its goals. You must decide what tasks your workers are to perform and it is also up to you to define what constitutes acceptable job performance. It is your responsibility to periodically review the job performance of your workers against the standards of performance that you have defined. When their performance on the job becomes unacceptable - it is your responsibility to fire that employee and replace him/her with a worker who is judged to be more capable of getting the job done. If you do not upgrade your work force then the goals of the business will not be met and you might even be forced out of business. Firing workers is not pleasant but it has to be done or the business could fail. This activity does not require predicting the future but only the measurement of actual job performance. Poor job performance is not to be tolerated and since there is always a reason for poor job performance - the simple fact of unacceptable job performance is grounds for dismissal. In this way the portfolio can be kept fresh and the performance can be managed in a businesslike manner.
Poor portfolio performance is simply a result of holding too many poorly performing stocks for too long. Each investor is free to define his/her own standards of performance. But if performance standards are not established, the substandard performance of some stocks will drag the overall portfolio down. It is not a complicated process but it does require discipline and a willingness to act. It also requires a system to monitor and measure the performance of each stock. The Market Dynamics computer software provides just such a performance management system. Market Dynamics provides the essential feedback that allows an investor to quickly and effective evaluate the investment performance of each stock in the portfolio.
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