FAQ
Q: Is IRISFUND.com a mutual fund? Can you trade
stocks and options for me?
A: No. We
are just a private stock picks club currently. We are planning to set up a private fund
serving clients in the future. If you are interested in setting up this kind of fund
cooperating with us, please  Contact us
Q: Please
explain a cover order. Is that on a short sell? It looked to me you are only are only
taking "long positions".
A: Do you remember the stock "VIP"? On yahoo BBS we discussed what should we do
after it dipped down sharply on November 14, 2001, I said:
"Long term:
We are not going to change the target price and date: $32.10 Before October 15, 2002.
Short term:
A. If we did not cut and run at last two lines of defence, we would have to wait. We set
the next deadline at $19.70, if once the VIP's price hit $19.70, we must cut it and run
away.
B. If we have not bought it before, we will not buy it right now.Let's wait till it can
keep its feet."
Lately, the VIP has rebounded, we can pick it up at $22.30, for those members have not
bought it before, it is a buy action; but for those members had bought it in last month
and cut and run at $24.60 in last week, this is a "cover" action, isn't it?
In our Long-Term and Short-Term trading lists, "COVER" means "buy
again", there is a little difference with "BUY" signal. "BUY"
means I never did it before, but "COVER" means I had bought it before and sold
it, now I will buy it again. Especially, this signal warns new buyers, it will be not
suitable for them because the price is too high for a new buyer.
For example, in the lists of 2002-02-08, we gave 5 cover signals. If I were a new buyer
who never bought VIP before, would I dare to BUY it at $27.64? Of course not, it is too
risky, and it is not worth as the target is $32.10, there is almost no profit margin. But,
I am not a new buyer for VIP, I have bought and sold it several times since its start (
$18.18, Oct-12-01 ), so I have 66.7% gains in my hands, and I want to finish the
"touch down"--hitting the target at $32.10, then I will buy it again while it
had dipped and rebounded, I call this action as "COVER".
Another example, I gave "COVER/BUY" on TRN, it means, for me it is a cover
action because I had bought it and stopped (cut&run) it before ( even if only 1 day
ago. Sometimes, I could sell it in the morning and cover it in the afternoon, it is not
strange ). If I am a new buyer for TRN, the signal "BUY" will be suitable for me
too, because its target is $41.00, and its last price is $22.89, it is worth.
Q: What
percent of your pick's were winners since Jan '01 to Sept '01?
A: Since January to September 2001, we got 30 winners in 46 picks, average gains is
+24.1%. It should have been much higher if the "9-11" had not happened. Since
October, in those 16 "losers", I have picked up (covered) 14, and given up 2 of
them.
Q: How do
I access the additional information not on the yahoo club site. Do you communicate
the information by e-mail? How often do you send your newsletter by e-mail? Once a day?
What time do you send it? Evening? Morning? or during trading hours?
A: Yes. Every business day, after the market is closed, our formal club members will
receive a newsletter by E-mail, which is a group of detailed lists of well-chosen
potential high profitable stocks and options picks screened by us, including long-term and
short-term investing targets. You can see a sample on http://www.irisfund.com/Irisfund/newssample.htm also. Many of our formal members are enjoying it, enjoying their
fat wallets:-) Make sure your E-mail address is active and can display HTML files
correctly please.
Q: Thanks
for your help. Great "strong buy" advice on Thursday night for Friday's market.
Strong performance on a down day! Normally I never believe this kind of private investment
club. But these days I have been watching the stocks picked in this Club and found it is
amazing and too good to be true. For stock-picking, I think even 1 out of 3 stocks picked
is a winner, it should be a great success. But it looks like Victor's list is much more
out-performed than that.
Maybe I am not a paid member, I am not able to find how many of Victor's stock pickings
are losers. But since he set up a discussion board here, I did not see any posts
complaining about his stock picking.
Victor, can you tell us what kind of stock pick strategy are you using on stock picking?
Are you following any experiences of some well-known Wall Street masters, such as Jessie
Livermore, William O'Neil, Warren Buffett, or some Fund managers such as Ben Zacks, or
some stock-picking software?
You don't have to answer this question. I understand and respect your commercial secret.
A: Thank you for your generous comments.
If you had read our stock picks record on http://www.irisfund.com/irisfund/billboard.htm
, you would have known our picks success rate is 80%, it means 20% stocks screened by us
are losers. It is not a secret, we have been posting this record on our Website publicly
for a long time. By the way, before 9-11, only 13% stocks in our list were losers.
Theoretically, the loss rate could be as low as 6%.Please take a look at http://www.irisfund.com/irisfund/statistics.htm
Almost every famous and successful investor has his/her investing and stock screening
methods. Some master investors, such as Benjamin Graham and Peter Lynch, are focusing on
value investing, supply and demand, production and consumption, and cyclical inflation and
deflation, as well as global economic structures. Some technical analysts are good at
researching charts of stocks, analyzing price and volume pattern, etc., such as Steve
Nison, Martin Pring, Thomas DeMark, Stan Weinstein, Robert Edwards and John Magee. Some
orient analysts are accomplished in using certain special situations in Chinese stock
market. For example, Jiajian Huang found a relationship between stocks’ price and
year-line, then he earns his caviar and champagne ( the Chinese stock market is a “
baby market ”, there is only long trade mechanism in it, and the rise or descend of
price during one day are limited to 10%. Short sales, futures and options are all
forbidden. ). Some people are high on short-term speculation, such as Victor Niederhoffer
and Victor Sperandeo. Contrarily, Warren Buffet becomes the richest man in the world
through long-term investment. Christopher Graja and Elizabeth Ungar like to invest in
small capacity stocks. Geoffrey Moore succeeds in buying stocks of high technology
companies.
They are all so great and professional and their methods are so profound and complex that
we individual and small investors always feel that is too difficult to learn and use. Of
course their main ideas can be borrowed in a way, but we need to find some simple methods
which are suitable for small individual investors. For a simple reason: the capital and
information held by small individual investors can not be at all mentioned in the same
breath with those gurus are owning. They are always sitting in their luxury offices or
private planes, savouring champagne served by their fair secretaries, watching real-time
quotes transmitted by satellites, while transferring millions or billions of dollars just
with a flick of the finger. Sometimes they get the secret insider information while they
are having cocktails in a VIP party or playing golf with those lordly bosses. But what do
you and I have? I don’t know what you have, I just know I have nothing compared to
them. So we can not totally or blindly duplicate their methods, theories and strategies
because of the big difference between their situation and ours.
I trust statistic data only. This is my secret, if I have. Data will never lie to us. I
have done my homework for a longtime - screened every stock ( more than 10 thousand, by
some tools of course ), chosen more than 500 of them to analyze their charts one by one,
made many statistics forms, done mathematics, then concluded the model. Now I use the
model to screen about one hundred stocks every day. That is my strategy, I believe if you
do this kind of homework also, you will be more successful than I will.
Thanks a lot, heartily.
 
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