Twopercentgoal.Com Shows 40% Gain For November Picks

If you were a subscriber to the daily email, you would get stock pick recommendations ideal for swing traders.  Unlike day traders, swing traders do not buy and sell a position within a day.  Swing traders have a slightly longer time horizon, usually three days to three weeks.  My goal is to hold a stock for about one week and make a two percent gain.  If I can do that for a year, that represents a return of over 100% per year.  That is my goal.  To double my money each year virtually risk free.

I have attached each recommendation I made for the month of November.  You will see the ticker symbol, the date bought, the purchase price, and the net result.

Here is an overview of the results.

For the month of November there were a total of 37 recommendations that showed a net gain of 40.41% or 1.09% per pick on average.  While that is an impressive investment return for one month, we know this is a theoretical number and not a true indicator.  For starters the picks are not made sequentially where one pick is made then sold then another pick made etc.  Many of the stock picks overlap their respective time frames.  Also, we do not recommend using more than 10% of your portfolio on one pick.  This diversification factor of 10% is to mitigate risk and also to take advantage of as many recommendations as possible.  Assuming a 10% diversification factor and you were able to buy all recommendations, you would have realized a net gain of 4.04% for the month.  That is over 48% per year.  If you were to buy on margin that could be anywhere from 96% to 145% for the year.

Of the 37 recommendations, 33 went long and only four were shorted.  Of those that went long, 17 picks made 2% or more.  Three of those 17 earned 5% or more.  Sixteen of those 33 long recommendations did not make their two percent goal, but that does not mean they all lost money.  Six of the 16 did not meet the two percent goal but were still in positive territory.  Part of our strategy is to use a 3% stop loss if our pick was wrong.  Only five of the 16 triggered the 3% stop loss.

There were not many opportunities for shorting in November.  We made four picks to go short.  Only one was successful and it earned 5.75%.  Three of the four fell short of the two percent goal but two of the three were still in positive territory.  Only one recommendation to short lost money and it was triggered by the 3% stop loss.

We have tweaked our program slightly.  If you go to twopercentgoal.com you will see the 10 steps we use.  The only slight modification is the last trigger to buy or sell.  Instead of buying on the MACD intersection, we are buying or selling as the slope of the MACD histogram changes.  This allows us to enter an upswing earlier and then to exit to minimize losses and hopefully reduce the number of 3% stop loss triggers.  I will explain this concept in greater detail in next week’s blog.

Go to twopercentgoal.com and sign up for the daily email of stock recommendations for swing traders.  It’s free for the first 30 days and then $99/month thereafter.

While the test data is overwhelmingly positive, there are risks with this type of investing and the author accepts no responsibility for any possible losses.

Cheers,

Al