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1. How many values should you hold?
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2. Market-Capitalization more than 150 Million
US$
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- Pros say 50 stocks to reduce
single-company-risk (unsystematic
market-risk).
- Most of the publications
recommend 20 to 25
different stocks.
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- little market-capitalization
results in less liquidity
and more volatility
when selling.
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3. High relative strenght (see
our ALLTIMEHIGH--List)
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4. PE (price-earnings-ratio) between 10 and 20
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- The ALLTIMEHIGH(TM)-Stock-Listing
contains more than 100 Top-stocks
(and same hundreds more
of quite good companies)
with high relative strenght,
which you may sort by industry,
PE (price-earning-ratio),
%-performance, etc..
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- The PE
is actualized twice a year
(not more needed for long-term-investing)
- Using cbs.marketwatch.com you
may build a portfolio that
could be sorted by PE, so
you can quickly decide which
stocks you should buy or
sell according to this criteria
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5. Diversify industries and regions
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6. Industry cycles (according to Merrill Lynch)
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- Reduce risk by choosing stocks
from different industries
and regions
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- Different industries depend on
economic growth and interest
rates
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7. Cost-average-effect
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8. Stop-Loss or alert at -15% from ALLTIMEHIGH
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- The cost-average-effect is scientifically
proven the best methode
to build a portfolio with
regular investments. Build
a portfolio of 50 values
in 4 years buying one stock
a month.
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- Stop-Loss or alerts with -15%
from the ALLTIMEHIGH are essential to
reduce bad stocks. Even
top-stocks (and even those
included in our list) may
crash without early warning
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9. Moneymanagement
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10. Development
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- Reduce deteriorating positions
in times of week markets.
- Hold fresh money
in cash when markets are
week and high-valued (high
PE).
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- make regular proofs of your investing
strategy and incorporate
new knowledge.
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