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My pick 6 strategy
Old 11-13-2013, 01:10 PM   #1
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My pick 6 strategy

So I have been watching some individual stocks for the past couple of months and it got me interested in doing solo stock picks a bit more.

Having the addictive personality I have this scares me a bit, but so far I have picked some stocks that I feel are "winners", and I also feel I have a solid exit strategy for a WIN and a potential LOSS scenario.

Tell me why I shouldn't hold onto any one of these specific stocks for the next fiscal quarter:

PGP
GIS
YELP
CAB
DG
OME
FDX

Part of my strategy is allowing you all, the financial community to help me eliminate the 7th stock so I maintain my pick 6. So please, which of these stocks would YOU eliminate and why do you feel its a weak pick?

Thanks for playing.
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Old 11-13-2013, 01:36 PM   #2
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I thought this was going to be a thread that shared a reliable strategy for picking lottery numbers... too bad.

Sorry, no advice for your list... I'm not a stock picker and I don't think most people have what it takes to know when to buy (and more importantly when to sell).
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Old 11-13-2013, 01:48 PM   #3
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I thought this was going to be a thread that shared a reliable strategy for picking lottery numbers... too bad.

Sorry, no advice for your list... I'm not a stock picker and I don't think most people have what it takes to know when to buy (and more importantly when to sell).

That consensus seems to be the norm. I haven't put real money on the line yet...who knows if I ever will heh. As for the lottery, fortunately for me they don't have the lottery in Hawaii.

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Old 11-13-2013, 01:54 PM   #4
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Originally Posted by kgtest View Post
Tell me why I shouldn't hold onto any one of these specific stocks for the next fiscal quarter:

PGP
GIS
YELP
CAB
DG
OME
FDX

Part of my strategy is allowing you all, the financial community to help me eliminate the 7th stock so I maintain my pick 6. So please, which of these stocks would YOU eliminate and why do you feel its a weak pick

Thanks for playing.
So kind of you to allow me to play. I would say write the names on 3x5 cards, and eliminate whatever one you choose. Then, provided that Jupiter is not aligned with Mars, buy the others one at a time monthly, always checking the planetary auguries. Poking a stick around in chicken guts will also work, if you know how to interpret these findings. There is also the I Ch'ing, but it has been a long time since my hippie days and I cannot remember how to interpret this.

Ha
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Old 11-13-2013, 03:00 PM   #5
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Is this for a 5%-10% fun part of your portfolio, with a diversified AA for the rest, or is it going to be all of your portfolio?

I invested in individual stocks before I moved to mutual funds. I was comfortable with 20 or more stocks as my portfolio (at the time), but I didn't have any international diversification. Then I moved into funds for better diversification.

I would not be comfortable with six stocks as a portfolio, but if you want to try it for a small portion then don't let us stop you. I'm not sure my stock picking was good enough to work with six stocks. I had some winners and losers, which averaged out just fine over 20 stocks but would have been way more risky with just six.

I'm also thinking that reaching an online consensus on your stocks just increases their mediocrity and removes your stock picking skills from the equation. Your best bet could be with stocks the rest of us all hate.
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Old 11-13-2013, 04:56 PM   #6
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This would be for just a small portion of my portfolio if I did decide to do it. I basically got bored watching my Small and Mid Caps. It does seem risky to me and is naturally why I haven't done anything yet.

Good to know that I might have better odds with more stocks. Makes sense.
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Old 11-13-2013, 04:58 PM   #7
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One of my picks was going to be Gogo, as I heard the news that some airlines were now allowing you to use your device more during a flight. I thought to myself, GoGo stock would be a good buy right now, since more people might find that service more appealing now that you can consume the internet longer during flights.

Well I didn't buy it, but GoGo is going up.
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Old 11-13-2013, 08:00 PM   #8
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I invest a portion of my portfolio in individual stocks. A little over 5%. I put a stop loss in for each stock and that takes the emotion out of selling. You aren't going to ride a stock all the way to when it augers in the ground.

I look for positive cash flows and make sure that cash flow isn't from excessive borrowing. Also buy in companies where you understand what they do.

I would say 90% of folks should stay with mutual funds and etf's. But for folks that don't mind doing homework individual stocks as portion of a portfolio are OK.
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Old 11-13-2013, 09:06 PM   #9
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Originally Posted by kgtest View Post
So I have been watching some individual stocks for the past couple of months
Strike one....

Quote:
Originally Posted by kgtest View Post
and it got me interested in doing solo stock picks a bit more.
Strike two....

Quote:
Originally Posted by kgtest View Post
Having the addictive personality I have
Strike three!
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Old 11-13-2013, 09:22 PM   #10
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One of my picks was going to be Gogo, as I heard the news that some airlines were now allowing you to use your device more during a flight. I thought to myself, GoGo stock would be a good buy right now, since more people might find that service more appealing now that you can consume the internet longer during flights.

Well I didn't buy it, but GoGo is going up.
As is the rest of the stock market. Not that I'm against gambling in the market with a portion of your money. I know from experience that I'm capable of picking stocks that go up when the market is going up. But the test is whether you can pick stocks that go up when the general market is going down. I can't. Have fun.

Can't help putting in my 2 cents. Yelp doesn't make money and has a high valuation. Where have we heard that before. That's the one I'd avoid.
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Old 11-15-2013, 03:53 AM   #11
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Either DG or CAB would need to go as they are the same retail industry sector.

By the way - I beg to differ with the majority - there is nothing wrong with individual stock picking - as long as you a) have the time b) are comfortable doing your due diligence and c) are actively managing your portfolio.
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