For those of you entered into the portfolio challenge, our later founder Dr. Bart DiLiddo provides us with words of wisdom.
We have included an essay written by our founder Dr. DiLiddo back in 2018. This was written for the US market but directly applicable to the Australia market too! These words of wisdom are as valuable today as they were in 2018. Are you getting the most out of VectorVest to make money in the market?
“HOW TO BECOME A CONSISTENT MONEY MAKER.
MAY 25, 2018 – Dr. DiLiddo
I started investing in stocks in 1960. I wanted to make money…lots of money. So I did everything I could to become a successful investor. I signed up with Merrill Lynch, attended presentations, read books, subscribed to newsletters and magazines, bought investment courses, and joined a stock investment club.
After 15 years of floundering around, I finally gave up. I sold all my stocks at the very bottom of the 1973-74 Bear market and stayed out of the market until 1978.
A blizzard hit my hometown that year, so I was snowbound with nothing to do. I spotted the January 1978 edition of Forbes magazine, which analyzed and ranked 500 stocks and industries. I began to read it and decided to buy the 10 best stocks I could find and hold them for one year.
After several hours of pushing numbers around, I realized that the magazine didn’t have the information I needed to make good decisions. So I went to my study and calculated what I wanted myself. By the end of the day, my stock valuation formulas were created and VectorVest was conceived.
Ultimately, I realized that virtually everything I had “learned” about stock investing was not correct, much of what I should have known, such as timing the market, was unmentioned and the guidance I had received, such as dollar averaging, was not always in my best interests. These problems still exist today and I am concerned about the plethora of misinformation spewing out of TV channels by so called experts and the preposterous claims appearing in the emails I receive.
VectorVest’s top priority is to help investors consistently make money. That’s why we do what we do. Take Steve Chappell’s excellent “Special Presentation,” “Emulating the Best of the Best” on May 11, 2018 and Glenn Tompkins’ “Special Presentation,” “Keep it Simple, Revisited” on May 18, 2018.
Every VectorVest subscriber should have a portfolio that just keeps making money. Here’s how to do it:
BUILD A WATCHLIST OF YOUR STOCKS. This is the foundation upon which you should make all of your investment decisions. Your VectorVest WatchList takes the guesswork out of managing your portfolio. Good portfolio management begins with getting rid of your losers. Sort your stocks by RT Desc. Your problem children are at the bottom of the list. Consider selling your low RT, “S” rated stocks. View the WatchList Tutorial under the Welcome Tab.
READ THE GRAPHS before you make any decisions. Graphs reveal a stock’s DNA. Favor stocks with smooth, stable price patterns. Avoid stocks with choppy, erratic price patterns. View the Graphs Tutorial under the Welcome Tab.
HEED THE COLOR GUARD. The way to make money is to buy rising stocks in rising markets. The best time to buy stocks is when a Green light appears in the Price column of the Color Guard.
CREATE A QUICKFOLIO. From your WatchList click on the Drop Down Arrow on the QuickFolio tab. Click on QuickFolio All. Enter the name of your WatchList. Select a Commission Type and Purchase Type. Click OK. Click Open Portfolio Now. Bingo, your WatchList of stocks is now a QuickFolio.
MANAGE YOUR QUICKFOLIO.
1. Sort your stock positions by ROI Desc.
2. Close the lowest position that has an ROI < 10% by right clicking on the row and clicking on Close Position.
3. Click on the Home Tab on the main toolbar.
4. If there is a Green Light in the Price column of the Color Guard, click on the UniSearch Tab.
5. Select the search named “High RS B Rated Stocks.”
6. Note the Ticker Symbol and Price of the top stock that is not in your QuickFolio.
7. Add it to your WatchList.
8. Click on Add Trade at the top of the QuickFolio panel.
9. Divide the Buying Power by the Price of the Stock and enter that number in the Quantity box.
10. Return to Step 2 to close another position.
This portfolio management system is patterned after The Guide to WorryFree Investing and is virtually certain to turn any WatchList of stocks you start with into a money maker. It may seem like it takes a lot of work to do this every day, but I’ll bet it won’t take you more than 10 minutes a day once you’ve learned the drill.
If that’s still too much work, we have put a Template, called Money Maker, in the Conservative folder of the BackTester. Try it out. It consistently makes money. We’ll be releasing a fully automatic RoboTrader soon. Imagine, you could be out fishing, golfing or sleeping and be making money.
One way or another, we want you to Become a Consistent Money Maker.”
Residents of Australia:
VectorVest Inc (ARBN 654 498 218) and Russell Markham are Authorised Representatives (No. 1294036 and No 1294037) of Centra Wealth Pty Ltd (ABN 39 158 802 450) which holds an Australian Financial Services License (AFSL No. 422704). Please refer to our Financial Services Guide which provides you with information about us and services we can provide. Any advice is general in nature and has not considered your personal objectives, financial situations or needs. You should consider whether the advice is suitable for you and your personal circumstances. Backtest results and Model Portfolio performance and profit calculations are theoretical and calculated by VectorVest Inc and do not reflect actual investments in the companies mentioned. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Actual results may be affected by known or unknown risks and uncertainties that cannot be reasonably included in a backtest, and therefore these outcomes can differ materially from backtested expectations. As a result, past performance should not be relied on as a guarantee for future results.
TERMS AND CONDITIONS: https://vectorvestau.wpengine.com/terms-and-conditions/
Residents of the United Kingdom:
European Financial Publishing Limited T/A VectorVest UK (VectorVest) is authorised and regulated by the Financial Conduct Authority under register number 543038. You should remember that the value of investments and the income derived therefrom may fall as well as rise and you may not get back the amount that you invest. Past performance is not a reliable guide to the future. This material is directed only at persons in the UK and is not an offer or invitation to buy or sell securities. If investors are in any doubt of the suitability of an investment given their individual circumstances, they are recommended to contact an investment manager or independent financial adviser who may be able to provide tailored advice. Opinions expressed whether in general or both on the performance of individual securities and in a wider economic context represent the views of VectorVest at the time of preparation. They are subject to change and should not be interpreted as investment advice. VectorVest and connected companies, clients, directors, employees and other associates, may have a position in any security, or related financial instrument, issued by a company or organisation mentioned on this site. European Financial Publishing Limited is a company incorporated in Scotland under Company Number SC357322 with its registered address at Exchange Tower, 19 Canning Street, Edinburgh EH3 8EH. Email: [email protected].
European Publishing Company is covered under the jurisdiction of the Financial Ombudsman Service (FOS). Should any complaint made not being resolved, you may refer the matter the FOS for their consideration. Please note that there are some limitations on the complaints that the FOS will consider. Details can be found on the FOS website. You can contact the FOS as follows:
The Financial Ombudsman Service