Aggressive Portfolio Strategy
Last update: January 1, 1999
|A stock is purchased
1) it exhibits strong positive momentum.
2) it has a relatively smooth, upward-sloping 10-month moving average.
3) it is in a strong industry or sector.
A stock is sold if:
1) it exhibits weak positive momentum.
2) it has appreciated significantly in a short period of time.
2) another stock looks more compelling.
A stock is sold short if:
1) it is in a weak industry.
2) it has strong negative momentum.
Stocks will usually be held from one to 10 days.
The goal of this portfolio is to make as much money as possible in the shortest amount of time without excessive risk.
By focusing all purchases on stocks with strong positive momentum, huge gains are realized in a short amount of time. Losses due to severe market corrections are kept to a minimum by the use of short selling.
Most purchases will come from the tables shown on the NYSE and NASDAQ pages.
Borrowed funds (margin) will be used.