IBD Buying Strategies
Northern Virginia Meetup Group – Apr 25, 2007
Tonight’s 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
2-1/2% Past Pivot Point
Pivot Point
20%
30%
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