Stock Selection | Moon Run

Stock Selection

Questions abound in the art and science of stock selection. Which method gives me the best return with the least risk? Will someone teach me so that I can be self-sufficient? Is there a fastest way to learn? Do I need a PhD in finance?

Single stock selection is quite daunting, as eventually the stock needs to be sold and move on to another. Charting has an advantage as to find out how the stock has performed recently, providing entry points and familiar formations. The drawback of charting is that no chart is the same and no one can forecast how far or how fast a stock will go before it needs to be sold.

The issues of portfolio maintenance are many, and so many investors may want to buy mutual funds instead of managing their own portfolios.

I would rather buy a collection of stocks and find replacement stocks with Quantitative Analysis. Once the stock is sold, a ranking system and a set of buy rules determines which one(s) are to be selected next. For this I use Portfolio 123. Portfolio 123 is a complete package with no survivorship issues (complete database of delisted stocks included). Stock replacement is very easy to find by rebalancing when the time is due.

In my website, the Moon Run Report, I include six portfolios designed to assist the investor by having a limited number of stocks which will hopefully outperform the benchmark, the S&P 500. Too many stocks will make it more difficult to get superior results.

Performance of portfolios may go from very conservative to very aggressive. Aggressive small cap portfolios may give superior results but are not scalable for large accounts. Conservative portfolios run the risk of underperforming the benchmark, so why not buy the index fund instead?

Check out my link to My Research on my website.  URL is My Research | Moon Run (