What You Will Learn:
If you find yourself scanning daily for the proverbial “needle in the haystack”, wouldn’t it be easier to determine which haystack the needle might be in versus looking at all the haystacks? The good news is that the market is broken down into “haystacks” called sectors. We can scan, filter, or sort these groups by leaders, limpers, and losers. If we want to find winning stocks look in the leading sector group. Sounds too simple, doesn’t it? A simple process for doing this is to use ETFs (Exchange Traded Funds). Take a list of the ETFs that use established sector benchmarks or indexes and sort, filter, or scan them based on your criteria (strategy) to find the winners. This allows you to make a decision to buy the sector through the ETF, or find the stocks you want to own in the ETF. The process is straight forward and simple. If you feel the need to make it complex you can add a ‘triple Lindy or a ‘back flip’ if you desire, but starting simple will make the ‘back flip’ easier to understand.
Now, let me be the first to say, there is no such thing as a perfect strategy. There is no such thing as a strategy that wins all the time. However, there are investors who learn to build strategies that work for them over time that meet the purpose of why they are investing. These investors stay disciplined throughout the process. My goal is to teach you how to fish, not give you the fish!