Buying Strategy and Results

Performance since 9/25/2007

It's been just over 3 months since I have implemented my latest and greatest system (the one I has been producing the stock picks that I have been posting), and I have to say, I am very happy with the results. In light of my good mood, I feel that this is a good time to describe my buying strategy as well as to provide some statistics for my performance.

Buying strategy:

I take my investment capital and divide by 3. This is the amount I will spend on each trade. The following examples describe the different scenarios this has put me in over the past 3 months

1. When exactly 1 of my stock picks hits its buy point, 1/3 of my investment capital is in play.
   
2. When exactly 2 of my stock picks hit their buy points, 2/3 of my investment capital is in play.
   
3. When exactly 3 of my stock picks hit their buy points, 100% of my investment capital is in play.
   
4. When 4+ of my stock picks hit their buy points, I assume that I invested in the 3 lowest performing trades. This way I do not artificially inflate my results.
   

   
   

   If you have any questions, please do not hesitate to ask me. I feel that verbalizing my thoughts and actions makes them more robust.
   

   
   

In any case, using that buying strategy for my stock picks, I realized the following statistics since 9/25/2007

• T market is down 2.86%, while I am up 13.12%. (See the chart)
  
• This projects to an annual gain of 62.24% (before taxes)
  
• I have bought/sold 39 securities
  
• The average gain per individual stock trade is 1.09%
  
• The average gain per day in which I trade at least 1 stock is 0.55%
  

Those are all of the meaningful stats that come to mind right now. If you have questions about any others that I am not thinking of, please let me know. As it is, the train is coming into my station, and its time to get out of here.