Winning by Embracing Risk & 5 PowerRatings Stocks
The New Orleans Saints took a huge gamble by planning the onside kick run during a not so quiet moment at half time. As the once loudest band on earth, per the Guinness Book of World Records played, the coach gave this unusual tactic a 67% chance of being successful. This was all the edge the Saints needed to embrace the risk, execute the play and win the Super Bowl.
This Super Bowl risk taking illustrates that embracing risk is a critical part of all aspects of life. Everything we do entails risk of some degree. No where is this more applicable than the financial markets. Regardless of what you have been told or believe, risk is an integral part of investing. This does not mean to jump into investments in a willy nilly manner hoping for the best like a crazed Vegas gambler.
In the financial markets one needs to embrace risk in a quantified and systematic manner. This means to know the odds of success prior to taking the trade. Knowing these odds is done by using a tested and quantified system to choose stocks with the greatest chance of performing as expected. Our PowerRatings system is one such quantified, odd enhancing system for short term stock picking.
PowerRatings is 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 has proven time and time again to locate stocks primed for short term gains.
Here are 5 top PowerRatings stocks for your consideration:
^AM^
^KIRK^
^HUN^
^RHB^
^SPR^
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.