The Science of Making Money in Stocks - Investment Ideas
1) Knowing what works, and2) Doing what works
Knowledge Is Power
'knowing what works'
- Did you know that roughly half of a stock's price movement can be attributed to the group that it's in?
- Did you also know that oftentimes a mediocre stock in a top performing group will outperform a 'great' stock in a poor performing group?
- And did you know that the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of 4 to 1?
- And did you also know that the top 10% of industries outperformed the most?
'doing what works'
Know What Works
- Did you know that stocks with 'just' double-digit growth rates typically outperform stocks with triple-digit growth rates?
- Did you also know that stocks with crazy high growth rates test nearly as poorly as those with the lowest growth rates?
'know what works'
Do What Works
'know what works''do what works'
- Do you know how well your stock picking strategies have performed?
- Whether good or bad - do you know why?
- Do you know if your favorite item to look for is helping you or hurting you?
- What will you do differently to make 2012 your most successful year yet?
Zacks VP Kevin Matras is our chart patterns and stock screening expert. He runs the Research Wizard and personally developed many of its built-in market-beating strategies. He also directs the Zacks Method for Trading: Home Study Course.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.