Aggressive Portfolio Strategy
Last update: January 1,
1999
A stock is purchased
if: 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. Goal: The goal of this portfolio is to make as much money as possible in the shortest amount of time without excessive risk. Theory: 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. Stocks: Most purchases will come from the tables shown on the NYSE and NASDAQ pages. Funds: Borrowed funds (margin) will be used. |