Saturday, December 30, 2006

We Beat the Market!

Review of 2006

Now, the year 2006 has almost been gone. It is the time to review and summarize my previous posts. I am glad to tell you that, for over 40 stocks that I suggested in my article, my Average Best Return Ratio is 40.5%. In less than a year (my first post is in March), this number is outstanding!

Suppose the starting price of my suggested stock in my article (the closing price of my article date) is Po;
Suppose the highest price of that stock after my post date is Ph;
The Best Return Ratio (BRR) is the percentage of (Ph-Po)/Po.
The Average of BRR (ABRR) is the average of all my stock’s BRR.

Apparently the BRR is the best case scenario. It is a good index to judge our performance, but it is not for a real case measurement.

For real life practice, let’s assume you using tracing stop order and set your tracing stop limit to 7%. In such case, if we have 40.5% ABRR, we would have 33.5% gains so far. If you bought every stock that I suggested at even amount of money, and use tracing stop order, you will have 33.5% returns in less than 10 month!

In my article, I provide some detailed instructions for certain stock sometimes. If you follow my instruction, or if you sell earlier, and buy back at lower level, your total return should be better than 33.5%.

Our return number is definitely beat the market. And I am sure it defeats majority of the funds also (We have no way to know the numbers of the best performer yet).

I will review our best and worst performers later.


Since the opening of my blog, I have received a lot of phone calls and emails. The rank of my blog had reached very high level at Alexa for a long time. Because of my tight schedule and other reasons, I had to stop my posting for a while. I would like keep writing whenever I got chance and discovery.

Thank you very much for all your support!