Friday, April 27, 2007

Lessons From the Model Portfolio

These are the stocks that I selected the morning of February 28th to put into my model portfolio along with the base price and the price as of Tuesday and the gain/loss since the simulated acquisition.

Needless to say there are only a couple of "contest winners" but all in all a nice set of winners (with one loser - to date). Considering that these were all plucked out of thin air based on a "going up before February 27th within a specified set of prices and average volume" filter, they didn't do too badly.

This suggests that you want to wait for market pullbacks in your quest for profitability. Unfortunately we don't get such cleansing action but maybe once or twice a year so the opportunities are few and far between. But when they do happen you must be ready to take advantage of them.


IIO said...

Wow, thats about triple the return on the S&P500. Not bad!

Marlyn Trades said...

Yes I know - I report the model portfolio return every night in the Wrap along with the benchmark which is the SPY.

Also the fact that there is absolutely no attempt at weighting or otherwise hedging makes it even more amazing.

Sometimes the simple approaches are the best.