Sunday, June 20, 2010

Stock picking

Now my pick list is dominated by semiconductors and retailers.
Stock picking strategies.
1) Buy market leaders
2) Buy beaten down stocks
3) Turn around stories
4) Buy IPO
5) Buy commodities
6) Buy dividend plays

Actually all these will work if played correctly :)

And what is my strategy. Currently I am with market leaders

The strategy I am seriously considering is
Watch the industry sectors for strength ,turn around by looking at charts. Buy the leaders/best stocks with strong fundamentals in those sectors. Rotate out of the sectors showing weakness
Pre condition : Market has to be in uptrend
Limit the number of stocks in portfolio to 10.
Have 1 IPO in the portfolio.
If the market stance turns, then short the index not the individual stocks
Another thing : Do not listen to talking heads in TV and read less crap. Trust own instincts.

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