IBD Buying Strategies

Northern Virginia Meetup Group Apr 25, 2007

 Tonights Topics
Portfolio Management
Establishing Position
Pyramid Buying
Placing Orders
Putting it all together
Buying Strategies Excel Spreadsheet
On-line Brokerage Screen
 Portfolio Management
Portfolio Size Suggested Number of
Stocks (end result)

$100,000 to 1 Million 5 6 Stocks

$1 Million to 5 Million 6 8 Stocks

Over $ 5 Million 7 8 Stocks

 Establishing Position
Scenario:
$100,000 Portfolio
5 stocks (end result)
$20,000 for each position

1st Buy = 50% of $20,000 = $10,000

2nd Buy (up 2-2.5%) = 30-35% of $20,000 = $6,000

3rd Final Buy (up 2-2.5%) = 15-20% of $20,000 = $4,000

 Pyramid Buying
Beyond 5%

5% past Pivot Point 20%

2-1/2% Past Pivot Point

30%

Pivot Point 50%

 Placing Orders
Place 1st order manually
Watch the price
Measure the volume
Use Buy Stop Limit Orders for 2nd & 3rd
buys.
 Volume
Looking for Current Volume greater than
150% of Avg Daily Volume
 Volume
Looking for Current Volume greater than
150% of Avg Daily Volume
Avg Daily Volume changes everyday
 Volume
Looking for Current Volume greater than
150% of Avg Daily Volume
Avg Daily Volume changes everyday
IBD Stocks on the Move
 Volume
Looking for Current Volume greater than
150% of Avg Daily Volume
Avg Daily Volume changes everyday
IBD Stocks on the Move
Delayed approximately 20 minutes.
 Volume
Looking for Current Volume greater than
150% of Avg Daily Volume
Avg Daily Volume changes everyday
IBD Stocks on the Move
Delayed approximately 20 minutes.
ScottradeELITE quote show realtime price
and Volume
 Putting it Together
Screen my Watch List for Potential
Opportunities
Use Excel spreadsheet
Portfolio Management
Pyramid buying
Buy Stop Limits Orders
Volume Calculations
Excel Spreadsheet
On-line Quotation from ScottradeELITE
Thank You