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The

tock market is one of the few places where an ordinary person (like me!) can legitimately accumulate a great deal of money. I earned 33% this year and, if the market continues to be favorable, hopefully I would like to improve on that number! My strategy is divided into two methods. Both are a disciplined and methodical approach to investing. I am a "value investor" looking for stocks with the best potential for rising P/E ratios. I look for stocks with great fundamentals that are undervalued. Here I believe that the stock will go up because of its good fundamentals. Now I can also put on my other 'hat' and become a "momentum investor". I look at price patterns and hop on and ride a fast-moving stock. I also look for price, earnings and industry group momentum.

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My Dual Investment Strategy

For my "value investing"I like to read the "Investor's Business Daily" every day and cutting out its features like"Companies in the News", "New America and its"Computers and Technology" pages for filing in a binder. These companies are usually growing and I would keep them for a longer term. They are the fastest growing companies in America. I also look in Friday's paper and cut out the charts for the stocks that have reached a new high or approaching their highs. I "create" portfolios for these stocks and track them in "Telescan"

"Value Line", the "Core" of my long term "value" investing strategy. It is this system of ranking stocks for Probable MarketPeformance in the Next 12 Months (Timeliness) which is an important step in my investment strategy.

"Window on Wall Street", the "chart reading" portion of investing strategy. This technical analysis program is capable of using indicators like Relative Strength Index that instantly point out buy and sell alerts. It's good for momentum players who want to know when a security is about to take off like a rocket or drop like a rock.

"Investment Wizard", is an on-line site that for me reinforces the technical analysis on my chosen stocks using a number of stock indicators.

Using my Daytraders On Line is the "core" of my "momentum" strategy. They provide day trading recommendations. This information is updated daily and is e-mailed to you during the evening. Members can also share information about hot stocks with the group in real time.

In addition to their basic service, they provide an optional service called "Morning Call". This service, which takes place in their Trading Desk chat room, provides (as far as I know) the ONLY real-time day trading chat room on the Internet. I have met some very serious traders here and gotten more ideas from "daytraders" than in any book! My trading strategy can be best described by the following quote.

"REVERSE PSYCHOLOGY - If patience is the golden key to trading, then the silver key is doing things opposite from the rest of the market. You want to buy when the average investor is selling and driving the price down. And when wonderful news is driving a stocks price higher, you want to sell your shares at the over inflated price. Buying when stocks are falling and selling when they are moving into higher ground is one of the hardest things to learn [and do] when you first start trading".
Ray Johns, Editor & Publisher- Daytraders On Line

Using my "Telescan Prosearch 5.0" stock search program. This is terrific beyond belief. Here I can actually "plug in" my very own value or technical criteria for finding the elusive 10-20 stocks out there among the 10,000 or so that are destined for unbelievable growth. I can literally ask for "perfection".

In the table below are some of the search capabilities of Prosearch:

Looks for stocks that experienced a 30% 26-week basing period breakout.	Looks for groups with good momentum based on their group ranks.
Looks for stocks with tremendous earnings growth.	Looks for stocks with recent price appreciation on heavy volume and upward revisions in earnings.
"Stochastics" and the MACD -- Moving average convergence/divergence indicator - Prosearch will plot these for you and let you know when it is time to buy.	Looks for stocks with high sales growth and high projected EPS % change.
You can reverse the process by finding stocks that have performed exceedingly well in the past and isolate what they have in common to find similar successful companies today.	Access to the best in business news databases, including Business news, Reuters News, Comtex news, Macro*World Forecasting system, etc.

Reading the following monthly magazines religiously: Individual Investor, Kiplinger's, Smart Money, Financial World, and Money Magazine

Some of my favorite books:

Fundamental Analysis, by John Ritchie. A good back to the basics investment guide to selecting quality stocks. The key word here is basic. This book is easy to understand and very good.

Traders Guide to Technical Analysis by C. Colburn Hardy. In easily undertood language, this book shows you how to use technical analysis to decide when to buy and sell stocks, evaluate a stock's performance, and forecast probable long-term trends in the stock market.

Beating the Street and One Up on Wall Street by Peter Lynch

Value Investing Made Easy by Janet Lowe. This book presents the Value Investing strategies developed by Benjamin Graham, mentor of the famed billionaire investor Warren Buffet, in simple and easy-to-understand style.

The Motley Fool Investment Guide by David and Tom Gardner

Cyber-Investing, Cracking Wall Street with your Personal Computer, by David L. Brown, Chairman and CEO of Telescan, Inc.

How to Make Money in Stocks by William O'Neil, founder of Investor's Business Daily, whose wonderful book sits dog-eared on my computer desk.

What all the books listed here have in common is their unique simplicity. They guide you to understanding critical strategies of investing or trading in an unencumbered manner. I recommend them all.

My Favorite Hi-Tech Websites:

FUNDAMENTAL RESEARCH:

The Motley Fools online service is great. It gives you really terrific analyst research and advice.
The Red Chip Review has some very thorough reports on small cap companies.
With InvesTools, you can search a stock, and up comes a list of research, along with news and recommendations. More than 40 newsletters are available at this site.

TECHNICAL ANALYSIS:

My favorite is the Investment Wizard site which offers technical analysis. For a small amount of money you can check on any indicators such as on-balance volume or various Japanese candlestick patterns. The best part is that a knowledge of technical analysis isn't necessary!

NEWS:

Real-time news is at Briefing. You get up to the minute news on stocks and sectors moving the market.

NewsHub is a one-stop shopping supermarket where all the on-line Hi-Technology magazines can be found (i.e. Yahoo tech news, Info World Electric, Techwire, Media Daily, Interactive Week, ZDNet, Wired etc..) It is updated every fifteen minutes!

TradeAlert is fun. Newswires are scanned in search of stock-moving stories. When there is significant news, you are e-mailed. When I back-checked on some of these previous alerts, the stocks had zoomed up to 61%! Be careful, they can go back down again just as quickly.

DAY TRADING:

My favorite sites are Daytraders site which offers hot tips for the day trader or very short time trader. Their tips are listed by members and reliability varies. Check out their chat room.

Another great site is The Pristine Trader, a very professional and polished site for day traders to share their insight. Each day, they analyze their database of over thousands of securities to determine which ones appear to be offering the best chance of gain, and then outline specific trading strategies to take advantage of them. They always weigh the risks of these investments.

Of course, I can't forget the wonderful job those guys and gals at CNBC do. I have them open all day. I get a great idea of what sectors are moving the market that day and invaluable ideas from analysts and my favorite, George Murphy.

*Pictures courtesy of CNBC

The following stocks are a partial list given to me by readers of this homepage. You will see they are not for the conservative investor!

CNTR	PMSI	BTGC	SMTG	GLM
MRVC	AKSEF	DNKY	ICTG	VION
CSSA	SPTR	APHT	KDUS	SHEL
CTIX	MRK	ZITL	WSFS	HTCH

Technical Analysis

These charts show 2 buy alerts

1) Engulfing Bullish: *The Engulfing pattern consists of two real bodies of opposite color. The second days body completely engulfs the prior days body. The shadows are not considered in this pattern. In this bullish case, the pattern should occur near a market bottom, or in a downtrend; and indicate a shifting of the sentiment to buying. The first day of the Engulfing pattern has a small body and the second day has a long real body. Because the second days move is so much more dramatic; it reflects a possible end to the previous trend. An Engulfing pattern is similar to the traditional outside day. Just like the Engulfing pattern, an outside day will close with prices higher and lower than the previous range with the close in the direction of the new trend.

2) When 5 day moving average of OBV > the 200 day moving average of OBV, the indicator turns bullish

Fellow investors/traders, should all else fail,

.My Dual Investment Strategy

My Dual Investment Strategy

Some of my favorite books:

My Favorite Hi-Tech Websites:

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My Dual Investment Strategy