While these systems should improve your chances of success, nothing
is guaranteed and you can still lose money. We believe any
thorough investment analysis includes an understanding of both the
technical and fundamental elements of a company. Human judgment is
important, too. It's unlikely that any purely mechanical system can
outperform the market on a consistent basis. The best investors in
the world find all the information they can (fundamentals, technicals, and
more) and pass it through their unique experience and judgment filter to
come up with decisions. To be a great investor, you must do the
same.
ERSA System
Based on the External Relative Strength calculations, this system looks
for stocks with great relative strength, along with other technical
factors.
Required fundamentals:
For an ERSA signal to be observed, the stock must meet at least 8 of the
following 10 criteria:
1 - Earnings and sales growth of at least 20%
2 - A product that's unique and/or hard to duplicate
3 - Net Profit Margins of at least 10%
4 - A Short Interest less than 2% of float
5 - A Price/Earnings ratio no more than twice the projected earnings
growth rate (i.e., a "PEG" ratio less than 2)
6 - A Debt/Equity ratio less than .25
7 - Positive cash flow
8 - Net insider buying
9 - No downward earnings revisions in the last six months
10 - A Price/Sales ratio less than 5
The ERSA System formulas begin with "DeBry MSST ERSA ...".
Runner System
This system is for those volatile stocks with huge growth prospects, but
also huge risks. Using your fundamental analysis, you find a stock
that you think has great growth potential (maybe a tech stock, maybe a biotech). This
system is designed to get you in on the big moves.
The system is proprietary, but the concept is
simple - find a stock with great growth potential, and try to not to miss
any big moves up, while avoiding big moves down. The system may give
you many small losses, but with the hope of catching the big trend.
The system will work poorly on range-bound stocks.
The Runner System formulas begin with "DeBry MSST Runner
...".
Grinder System
This system has a very simple premise. You start with a stock that
has solid, but not spectacular, fundamentals. A stock that will
likely grow 10-15% a year. Then you simply buy on weakness and sell
on strength. It sounds easy, but if you pick the right stock (again,
fundamental analysis), you'd be amazed at the returns above
buy-and-hold.
The system is proprietary, but has a
simple concept - find a fairly-priced stock that should grind higher, and
then buy on weakness (although not too weak) and sell on strength.
The drawback to this system is that you will miss any big moves up, which
is why you pick a stock that will be stable and boring.
The Grinder System formulas begin with "DeBry MSST Grinder
...". IMPORTANT
NOTICE: JD Investment Management, L.L.C. accepts no liability
whatsoever for any loss arising from any use of this product or its
contents. Stock, commodities and options trading has large potential
rewards, but also large potential risk. You can lose some or all of your
investment, or more. This information should only be used by investors who
are aware of the risk inherent in securities trading. |
