Darren Winters said “Picking Ideal Market Divergence as an Entry Signal is easy”
In the next few articles and postes Darren Winters of Win Investing is going to give some idea about how to pick up the actual entry signals.
Darren winters has used these signals for his analysis and he is explaining the same so keep on reading…………………
For Darren Winters of Win Investing
Darren Winters strategy is given below. As promised by Darren Winters in his previous post.
Darren Winters of Win Investing says
The strategy which I recently mentioned is the puppies of the Dow. This is where you look at the 10 highest yielding stocks in the Dow Jones 30 and then take the 5 lowest priced and purchase them at the beginning of the year.
$1000 invested equally across the 5 stocks that met the criteria in 2007 would have yielded a return of just over 30%. This compares with 13.6% for the S&P 500 and 16.3% for the Dow Jones 30. During the years of 1975 to 1999, the average return was
21%, unfortunately I do no have the figures for the rest of 2000’s at present although
they were lower than the 21% up until 2006.
At the end of the year you have the option of reinvesting the money into the new selection or take out the profit. $1000 reinvested over the years 1988 to 1999 would have become $7176. By adding a further $1000 per year it would have yielded £42,251.
Of course there is no guarantee that this would continue, there was some bleak years in 2001 and 2002 and 2005 (GM brought the figures down) and the flat year of 2004.
So this is just one strategy that could be used with a proportion of a portfolio, which has certainly beat the banks and in many a year the main indices. This strategy could be improved although it might mean that you would have to close some positions for part of the year.
For your FREE stock market training course From Darren Winters go to www.WinInvesting.com (This award winning Darren Winters Win Investing investment course is the most popular Investment training in the UK and its FREE)
Thanks
For Darren Winters At Win Investing
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Darren Winter is sure that this article will be of help to you
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