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  When I’m going through a testing process to check for a new update, my go to screen is “Close > 444”. This seems all fine and well, and will return companies that have a close greater than 444, but, believe it or not, this usage of “close” is incorrect. Within the Equities Lab system, there are two types of close – Close, and RawClose.…
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Bringing Technical Analysis into Value Investing Though I’m a strong believer in the fundamentals, and will die by the principals that fundamental investing works the best, I do have to admit that there are some virtues to technical investing. This is especially true when we look at how technical analysis can help us build and maintain our more fundamental and value based strategies.…
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We look at companies who have just reached their 52 week high and for companies who have just reached their 52 week low. Which is better: buy high and sell higher, or buy low sell high?
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How are investments like apple pie? Think back to the last slice of apple pie you have had. My last slice, eaten with my wife and two daughters, was delicious. It was out of this world. For me, it was the best apple pie. What makes it special? The recipe (passed down from my mother in law to my wife, Emily) is simple: Ingredients: 6 Granny Smith Apples 1/2 cup of sugar cinnamon nutmeg Four Pillsbury frozen pie crusts First question: why are we using four pie crusts for one pie?!?…
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The Curious Case of Sudden Past Growth With every screen that is released into the Equities Lab system, we go through a verification process to make sure that the results aren’t just because of some random fluke. This process contains a six steps, and is how we check each of our screens.…
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   In my last blog, I wrote about getting used to the Equities Lab software and how it can be so very useful for finding value in certain sectors with advanced screening. Another useful way to use the stock screening software is to find investments you should avoid. For example, let’s take a look at some big retail names.…
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The last time I did helped a friend develop an investment strategy he was under the impression that as long as he put stop losses in place that he couldn’t lose more than that amount of money under any circumstances. That sounds all fine and well since that’s what stop losses seem to be for, and in some cases that’s the truth.…
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Why Penny Stocks are never a Good Idea When I was younger and first started learning about the stock market I was a bright eyed 13 year old that would have believed anything you would have told me, because, of course, adults knew everything at the time. That being said, now that I am an adult, I don’t think I’m any smarter.…
Simulating a Short Strategy
Shorting in Equities Lab Before, if you wanted to test out a short strategy, you’d have to run your screen and hope that it loses money. That’s now changed thanks to our new “position_weights” feature where you are able to finally simulate a short strategy more closely and identify if your strategy really does make money.…
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Listening to Death Crosses Could be the Death of your Portfolio This week I decided to go through the process of looking over our old articles, and seeing if there were any that we might be able to improve with some of the new features that have been added to the program since their original publication.…
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Millennials, It’s Easy to Become a Millionaire. I just read an article on marketwatch with the title “Majority of Millennials doubt they become millionaires.”  http://www.marketwatch.com/story/majority-of-millennials-doubt-they-can-become-millionaires-2016-08-03 This upsets me because it means two things 1) People aren’t willing to look at the long term anymore – they want everything now. 2) People just don’t know how to do math anymore.…
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High yield stocks are all the rage currently. Clients of mine are always asking for me to create screeners that search for the highest yielding dividend stocks in the market. This has resulted in me asking the question “how good are just straight high yield dividend stocks?” To start this experiment off we are going to purchase all companies that have a dividend yield of greater than 0.1 (otherwise known as 10%).…
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Oil has been an incredibly volatile investment over the past twenty years, resulting in around 13% annual growth as an industry with a standard deviation of well over 7%. As a value investor the idea of investing in companies that can be seen as necessities to our current way of life is incredibly attractive, however, I need to figure out how to negate a certain amount of risk that can be see with this industry.…
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May was a difficult month for almost every sector. The markets were beaten up again and again. However, is there a shining light somewhere? Above you see heat map of every invest-able stock in the US market that has a close > 0, total yearly revenue > 0, and a trading volume value over $500,000 sorted by sector.…
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Is margin inherently bad? This is a question I’m often asked by people who are just starting off the in the markets and have just been offered margin by their brokerage firm. I, like always, answer the question with “it depends” a vague answer that really nobody wants to hear; but, like most things, it really does depend on the person.…
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The stock market is no longer simply about buying stocks you believe in and selling those you don’t. Today’s stock market is full of promotion and false statistics. This is the negative affect of the information age as many people have used these mediums as a way to spread lies that play into their personal agenda.…
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The Problem — 2014 and 2015 Have you had the experience of writing a screen, and having it get fantastic performance — except for the last two years?  Like this one. Zooming out we see outperformance, except in the last two years.  Maddening!   Back to the past The way we’re going to tackle this is to zoom into a specific period, and see what it seemed to want.…
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For the past few years the market has been dominated by two companies, Monster and Red Bull. These two drinks work really well, and you see them in almost every store you go into. However, these drinks, for a small 16OZ can it will cost you around $2.50 depending on where you live.…