Simplicity as a Key Principle of Success & 3 PowerRatings Stocks
Almost everyone has heard of the KISS principle. An acronym originally representing “Keep It Simple and Stupid”. Popular culture has appropriated the original meaning twisting to read, “Keep It Simple, Stupid”. The original meaning was not derogatory in the least; in fact it was quite the opposite.
It was first coined by Kelly Johnson, an aerospace engineer working at Lockheed’s infamous and secret Skunk Works. The original meaning meant to keep things as simple and unsophisticated as possible so that the aircraft could be repaired with basic tools and know how in the field.
This overriding principle that success is found in simplicity is also touted by others in most occupations and endeavors. Even Leonardo da Vinci and Albert Einstein have made clever quotes regarding this truth.
No where is the KISS principle more applicable than to the world of trading and investing. It seems the more complicated a trading system is, the less likely it is to produce positive results over the long term. Complicated trading strategies, although sometimes psychologically appealing, can be very counterproductive to your bottom line. Multiple rules often just serve to convolute systems that are very simple at the core. As in most things in life, simple is truly better when it comes to trading strategies.
Our PowerRatings are one such simple to use tool to help you locate stocks most likely to outperform over the short term.
PowerRatings are built upon the study of 8.5 million daily trades from 1995 to 2006. It is a ranking system of 1 through 10 with 1 representing the worse performers and 10 being the best performers. The system gauges stocks probability of outperforming against the S&P 500 over a 5 day period. Statistics clearly show that 1 rated stocks perform 5 times worse than the S&P 500, while 10 rated stocks outperformed 14.7 times the S&P 500 during the next 5 trading days.
As you know, past performance is no guarantee for future success, but our PowerRatings have proven time and time again to locate stocks primed for short term gains. The simple to use 1 to 10 ranking system is a classic example of the KISS principle in action.
Here are 3 top PowerRatings stocks for your consideration:
^NTRI^
^MED^
^CECO^
Learn more strategies for trading stocks in the short term with a free trial to our PowerRatings! The highest rated stocks have outperformed the average stock by a margin of more than 14.7 to 1 after five days! Click here to launch your free PowerRatings trial today!
David Goodboy is Vice President of Business Development for a New York City based multi-strategy fund.