IBD Buying Strategies
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IBD Buying Strategies IBD Buying Strategies Northern Virginia Meetup Group – Apr 25, 2007
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IBD Buying Strategies. Northern Virginia Meetup Group – Apr 25, 2007. Tonight’s Topics. Portfolio Management Establishing Position Pyramid Buying Placing Orders Putting it all together Buying Strategies Excel Spreadsheet On-line Brokerage Screen. Portfolio Management. - PowerPoint PPT Presentation
Transcript of IBD Buying Strategies
IBD Buying StrategiesIBD Buying Strategies
Northern Virginia Meetup Group – Apr 25, 2007
Tonight’s TopicsTonight’s Topics
Portfolio ManagementPortfolio Management
Establishing PositionEstablishing Position
Pyramid BuyingPyramid Buying
Placing OrdersPlacing Orders
Putting it all togetherPutting it all together
Buying Strategies Excel SpreadsheetBuying Strategies Excel Spreadsheet
On-line Brokerage ScreenOn-line Brokerage Screen
Portfolio ManagementPortfolio Management
Portfolio SizePortfolio Size Suggested Number of Suggested Number of Stocks (end result)Stocks (end result)
$100,000 to 1 Million$100,000 to 1 Million 5 – 6 Stocks5 – 6 Stocks
$1 Million to 5 Million$1 Million to 5 Million 6 – 8 Stocks6 – 8 Stocks
Over $ 5 MillionOver $ 5 Million 7 – 8 Stocks7 – 8 Stocks
Establishing PositionEstablishing Position
Scenario:
•$100,000 Portfolio
•5 stocks (end result)
•$20,000 for each position
11stst Buy Buy = 50% of= 50% of $20,000$20,000 = $10,000= $10,000
22ndnd Buy (up 2-2.5%) Buy (up 2-2.5%) = 30-35% of= 30-35% of $20,000$20,000 = $6,000= $6,000
33rdrd Final Buy (up 2-2.5%) Final Buy (up 2-2.5%) = 15-20% of= 15-20% of $20,000$20,000 = $4,000= $4,000
Pyramid BuyingPyramid Buying
20%
30%
50%
5% past Pivot Point
Pivot Point
2-1/2% Past Pivot Point
Beyond 5%
Placing OrdersPlacing Orders
Place 1Place 1stst order manually order manually– Watch the priceWatch the price– Measure the volumeMeasure the volume
Use Buy Stop Limit Orders for 2Use Buy Stop Limit Orders for 2ndnd & 3 & 3rdrd buys.buys.
VolumeVolume
Looking for Current Volume greater than Looking for Current Volume greater than 150% of Avg Daily Volume150% of Avg Daily Volume
VolumeVolume
Looking for Current Volume greater than Looking for Current Volume greater than 150% of Avg Daily Volume150% of Avg Daily Volume– Avg Daily Volume changes everydayAvg Daily Volume changes everyday
VolumeVolume
Looking for Current Volume greater than Looking for Current Volume greater than 150% of Avg Daily Volume150% of Avg Daily Volume– Avg Daily Volume changes everydayAvg Daily Volume changes everyday
IBD Stocks on the MoveIBD Stocks on the Move
VolumeVolume
Looking for Current Volume greater than Looking for Current Volume greater than 150% of Avg Daily Volume150% of Avg Daily Volume– Avg Daily Volume changes everydayAvg Daily Volume changes everyday
IBD Stocks on the MoveIBD Stocks on the Move– ““Delayed approximately 20 minutes.”Delayed approximately 20 minutes.”
VolumeVolume
Looking for Current Volume greater than Looking for Current Volume greater than 150% of Avg Daily Volume150% of Avg Daily Volume– Avg Daily Volume changes everydayAvg Daily Volume changes everyday
IBD Stocks on the MoveIBD Stocks on the Move– ““Delayed approximately 20 minutes.”Delayed approximately 20 minutes.”
ScottradeELITE quote show realtime price ScottradeELITE quote show realtime price and Volumeand Volume
Putting it TogetherPutting it Together
Screen my Watch List for Potential Screen my Watch List for Potential OpportunitiesOpportunitiesUse Excel spreadsheet Use Excel spreadsheet – Portfolio ManagementPortfolio Management– Pyramid buying Pyramid buying – Buy Stop Limits OrdersBuy Stop Limits Orders
Volume CalculationsVolume Calculations– Excel SpreadsheetExcel Spreadsheet– On-line Quotation from ScottradeELITEOn-line Quotation from ScottradeELITE
Thank You
