It’s been interesting to read several posts on this forum and see how some of you are so successful in investing through ShareWealth Systems.
I initially started investing just using some basic fundamental analysis and obtaining some recommendations from other providers who charged subscription fee and chose the stocks based on so called their analysis. I had some success but regretfully mainly failure from this method.
Since I started following SPA3 Investor (2018), I can now see a great turnaround on my investment returns. This is all I ever wanted; a mechanical system signalling, education resources, on-going webinars and my total control on where and how I invest. I believe this mechanical system is very effective and showing me a positive direction in the investing world.
However, like everyone else, I too have few questions on how all successful ShareWealth investors choose their stocks/ETFs on regular basis. I hope you don’t mind answering some of my questions:
When choosing the entry signal, do you:
Diversify your investments across several sectors?
Look at the current trend for that particular sector before acting on the signal?
Congratulations on your improved investing performance.
SPA3 Investor works mostly by not choosing stocks at all. You simply open trades stocks the day after the entry signals occur. Sometimes there are more entry signals than you have vacant positions available. Then you just select the one/s with the highest 126day ROC value/s.
No way of choosing will vary the edge long term. The key consideration is, imo, consistency in method. If it makes you comfortable, choose the way that resonates with you. I use relative strength first, then best stats second, then closest to atr stop, then a dart board (kidding on the dart board) however it would be a valid choice if consistently taken.
As I am volatility adverse, choosing positions in the one sector ie 4 banks in a portfolio of 8, would cause me to choose otherwise when I have 2 out of 8. Having said that, choosing all 4 if appearing in that order would suit others better than just 2 in a strong sector. Again, it goes to comfort and mindset foremost.