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Research & Statistics

    Double during a year? How viable will it be? If the probability, which help us to choose a profitable stock, were lower than or equal to 50%, I would rather borrow a coin from you to toss, huh?
    To answer this question, let us look at some samples below at first:

    According to our statistic, there are more than 300 stocks that have increased their price by at least 100% since May 2000 to May 2001, 182 in NASDAQ ( Nasdaq Stock Market ), 101 in NYSE ( New York Stock Exchange ), and 20 in AMEX ( American Stock Exchange ). Don’t forget, 2000~2001 is a terrible bearish year, with NASDAQ Composite Index cut more than 60% off during 12 months.
    However, there are also many bullish stocks performing very strongly. In a bullish market, many stocks’ price will rise, but it does not mean every investor can make money there. On the Contrary, in a bearish market, most stocks sink terribly, but there will still be hundreds of stocks like those listed above that soar and make the owners happy. These phenomena prove that every stock has its special characters and attributes. They are “ alive ” following their own inherent circulating regulations like flowers blossoming and fading during four seasons. So those bullish stocks in a bearish market environment can go up despite indexes’ downturn, just like the plum blossoms blooming in hard winter. We believe this suggest the way leading to the " golden key ".
    The Chinese like to use Yin ( the passive, female cosmic principle in Chinese dualistic philosophy ) and Yang ( the active, masculine cosmic principle in Chinese dualistic philosophy ) to image decay and flourish in the universe, also including stocks of course. We can extrapolate this idea to comprehend that stocks’ decline and rise are just another kind of samsara between Yin and Yang. Such changes are not “ hit and miss ” but have their own regular patterns instead. We believe this is a good point to be noted.
    After researching for a long time in American stock market, we have found some common regulations of bullish stocks above at last, and then, several screening rules have been deduced from these facts. Our statistic data shows: 70%~80% ( It is really a very high feasibility ratio to help us to make a decision, much more better than tossing, right? ) of these stocks, which multiplied 1~16 times during one year, have the same 8 characters.
    In this circumstance, we can conclude that those 8 characters are necessary conditions, which let a stock be going to become a super bullish stock. 70% of price-doubled stocks will meet all or most of these conditions. But it is not enough yet. We must prove that those 8 conditions are preconditions, it means: if a stock once meets all or most of those 8 conditions, it will possibly become a profitable “ tomorrow star ”. By this logic, if the probability, which let a stock’s price will be doubled during one year when it meet the 8 conditions, is over 70%, we can believe that it is really a useful profitable stock’s screener.
    In fact, according to our statistic, this probability is more than 70% in deed. Since May 1998 to May 2001, in NYSE, NASDAQ and AMEX, we picked out 213 stock samples, which met all or most of the 8 characters, to analyze one by one. The analysis result shows: 144 of them realized a growth of 100%~1400% in investment annual return directly. The ratio is 68%. Oho, less than 70%! I heard some guys were laughing. Something wrong? Wait a minute, let us look at another group statistic data: 173 of samples reach a growth by at least 80%, the ratio is 81%, the spent average time was only 5 months, and 71% of these growing stocks needed not more than 6 months to realize a growth of 80%~1400%. It means if we had missed the chance to make a rate of return by 100% directly on one stock during one year, we would have had another chance of 71% to earn a rate of return on investment by 80% during half a year. Why not did it twice, at two different stocks?

( In this form, “ succeeded ” means a stock has increased by at least 80%. The statistic data shows 71.1% of stocks which had been screened by the Rules above finished an increase by at least 80% during just not more than 6 months! )

   Actually, if we had invested in a super bullish stock market such as 1999~2000's NASDAQ and picked those stocks screened by the 8 attributes, we would have found that the success rate of getting an investment annual return over 100% would be 80%. If investment return could reach 80% would satisfy you also, you would have a chance as high as 91% to enjoy a fat wallet.
    The more amazing thing is: only 13 among 213 stocks occurred loss at the same period, the failure rate was only 6%! It means you maybe had missed the chance to make an annual return of 100% or higher, but you would have made a return of 90%, 50% or 20% in bearish markets, which other investors were losing huge money. Probability of loss was 6%, we thought it is really safe and confident to invest in volatile security markets according to the 8 attributes, isn't it?
    It is our research and statistics result in theory above, in practice, we get the result as follows.

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About us

    We are a private stock picks club specializing in researching how to double riches during one year in stock market. Since April 2000, we have been keeping a tremendous stock picks record, over 70% of stocks screened by us are winners.

Advice

1. Don’t buy a stock only because it has a big name;
2. Don’t buy a stock recommended by an analyst or a broker just because he/she has a big name;
3. Don’t hesitate to use the Super Rule, execute the IRON DISCIPLINE unconditionally--" Cut and Run " if you have to. Stop loss and keep alive, safety is every thing. Where there is life, there is hope. The Chinese has a proverb: “ As long as the mountain is still green, don’t worry no brushwood to burn. ”
4. Don’t be too greedy. Have realistic expectations. 100% profits are not the norm, when situations have changed, one's expectations should follow market changes and perhaps 50% growth rate or less should be also satisfied;
5. Don’t put all of your assets in the volatile stock market. Set the limit that you can have a sound sleep at night;
6. Keep doing homework, keep recording the reasons of every trade you made. After the trade is finished, review which one was right and which one was not . So you will keep progressing step by step;
7. Let us treat stock trading as a kind of game, not a kind of gamble, take it easy. Don’t ever spread yourself too thin to loose a good night's sleep;
8. Stock trading is a kind of action which consumes lots of both physical and mental strength. Be energetic. Exercise more to keep yourself physically strong and mentally alert. As the Romans said succinctly: a sound body begets a sane mind;
9. The health is the most precious assets of us. No matter how much money you have earned, you could not buy your health back if you lost it;
10. Do some good things often. Keep burning joss sticks for Buddha or any gods or goddesses on your mind.

Good luck! Good gain!!