brookinsbuys est 1991

                      MAXIMIZE RETURN, MINIMIZE RISK, PRESERVE CAPITAL

Give me the courage Lord, to sail my boat out from the shore;

For I'd rather know the Ocean's gale, and hear the Tempests' roar,

than anchor safely in some bay, because Fear conquered me;

Let craft less daring inland stay, be mine the pathless Sea.

  

Performance Testimonials About the Author Inspiration Home FREE TRIAL SUBSCRIBE

 

Strategy

 

Strategies vary depending on market conditions. If you are a member,  I present several strategies that have been very successful over

he past 10 years, regardless of market condition. In general, I try to keep members moving in the direction of the market's

long-term trend. Statistics show this is healthy for your account balance.

 

Up-trending Market (Bullish market):

And I am talking long-term up-trend. As a member, you will learn how to determine this yourself. I scan stocks for solid fundamentals.

Sometimes it is possible to find a few. I then track them nightly and place those companies in the nightly letter when technical analysis

(the EKG) says these stocks are ready to move higher. I do not believe in buying in early and stressing out because the stock is 20%

below my purchase price. For the Investor's Portfolio, allow a little more downside because you are focused on 6 months out. But for Traders,

that much downside is unacceptable. I like to buy stocks moving out of certain chart patterns that have proven to be winning patterns.

I then place sell stops on the stocks for protection. The stock is then allowed to ride a trend, as long as the trend lasts.

 

Fundamental Scan First:

It is well known that institutional money is the big money that moves a stock's price (banks, insurance companies, mutual funds).

And it is also known that institutions look for companies that make money (after the dot bombs fiasco). So we want to get in early, and let

them push our stock higher. Disassociate a "company" with the company's "stock." They are 2 different animals. We do not care what

the company does (in most cases), we want profit. And we want profit as fast as possible, with as little risk as possible. Moving on.........

In general, I scan nightly for stocks based on several criteria. I first try to find stocks that have solid fundamentals using earnings per share

(eps) rank, relative strength rank (rs = how a stock is moving relative to other companies in the same industry), accumulation/distribution

(acc/dist) rank, p/e, price/book ratio (p/b), price/cash (p/cash) ratio, long-term debt/equity ratio (ltd/e), and a more.

 

One thing to note: it is well known that a stock will bottom when news is usually most dreadful, and forward looking earnings is dismal

(Analysts are always behind the curve). So when a market or stock has corrected, I emphasize fundamentals less. In a good market, stocks

always top when the company news could not be better. So near tops, I emphasize fundamentals less also.

 

Technical Scan:

I do not try to get in AT the stock or market bottoms or out at the tops, but try to be invested or trading in the middle 70% of a stock's run.

Once I have completed the fundamental scan, I track these stocks nightly looking for winning price and volume chart patterns. I look for

several patterns, but especially for bases (tight trading range), triangles, and pullback to price support areas.

Volume is a key element of the stock hunt. I look for volume "footprints," good early indicators that a stock is being accumulated. I use moving

averages heavily, and have learned over 10 years which ones work for your specific investment or trading horizon. I indicate buy and sell points

on both individual stocks and the markets, using various orders you can place and go off to work (my buy and forget technique I developed

when I was in the military). I also indicate times when one should add or reduce positions. This is very important in the money

management arena. Speaking of money management: per Elder's book "Trading for a Living," I too believe there are 3 required areas you must

master to be a long-term winner in the stock market, and I will teach you what took me 10 years to learn in the school of hard knocks:

1) Successful trading method (win more times than you lose, gives specific entry and exit points using Reward-Risk criteria, no guessing or hoping required)

2) Proper personal psychology, and understand market psychology (I'll teach the basics that'll save you bucks)

3) Proper Money Management technique (a means to protect your capital; a means of measuring Reward versus Risk, etc)

 

Down-Trending Market (Bearish):

When the long-term trend changes to down-trending, our members go to cash initially, and early. I then conduct scans to find

stocks breaking price support on heavy volume. We will try to remain short in the stock until the trend changes. During this type market,

it does not pay to look for weak fundamentals. Remember, stocks are near their tops and news is still good. I focus on stocks using

technical analysis (price/volume relationships).

 

Trading Ranges

Some pros say that the market remains in a trading range 60% of the time. I have criteria for various trading ranges (depends on time horizon).

It typically pays to buy strong stocks on weakness near price support, and sell into strength near price resistance. Also, this is a decent

time to buy base breakouts in certain industries moving against the market on news. One can learn much from looking at a million charts.

I try to show members what to look for, in order that they will be able to invest and trade for themselves. I have helped several people leave their

jobs, and become full-time investors and traders over the years. Some have gone on to become very wealthy.

 

The newsletter can help you no matter how good you are.....if nothing else than to become a second set of eyes and reveal stocks with potential.