January 16, 2011

Why Why Why Why

Doing some data gathering today/tomorrow...hoping to make the process a little faster on this.

Key questions mentioned or thought of so far:

Do fundamentals matter - p/e, roi, margin, eps/sales growth etc?
Does the stock have a catalyst?
Does neglect matter?
Does float and dollar volume matter?
What kind of volume and price patterns are common?
What was the stock's momentum? How did it progress?
What was the duration of rallies and pullbacks?
Do IBD ratings matter?
Does the stock's past performance matter?
Does the stock's sector relative strength matter?
Does insider buying or selling matter?
How long since the stock IPO?
What is the fund holdings trend?

These are questions that I am trying to answer. I realize there are studies done that have already attempted to answer these questions, so some of you may be wondering why the heck I am doing this.

I am not trying to reinvent the wheel here, although it may appear that way. This is about getting good at spotting these big movers early on and developing a method to extract profit from these stocks. Reading someone else's studies alone won't make me better at it - it takes repeated study and training. That is why I am doing this.

I value everyone's feedback and thought-provoking comments. I also appreciate your patience with my lack of succinctness and bad humor...now to the next stock.

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