Sonic Money is a sounding board for my personal investments strategies and stock research. It will be updated in real time. As I make moves in these financial waters you will be able to either join in or watch from the sidelines. Either way my goal is to make money every day through picking long term stock winners, shorting stocks that shouldn't be posting gains, betting on sectors that are experiencing tremendous growth, and posting profits that make people take notice.

Sunday, January 13, 2008

My Strategy The Overview - The Three C's

I think its high time to divulge some of my stagey to my readers. I have summed it up into 3 simple components.

A) Core Industry - Stick To What You Know (i.e. technology, medicine, health care, etc.)
B) Core Companies - Watch A Group Of Stocks And Study How & Why They Fluctuate
C) Competition - Learn About New Companies To Invest In From Articles About Your Core Companies

If you know music then your Core Industry would be the music industry (i.e. Apple, Sony, Universal, etc.). If your an elderly person then your core industry may be health care, who knows about medicine and health care companies than you do? If you work on cars then your Core Industry would be the automotive industry (Ford, Toyota, Autozone, Shell, Gas Companies, etc).

Find some companies and watch them over a period of time. 6 months to 1 year is a good bit of time. I think its essential to study how the news and bumps in the market affect the stock. This allows you to invest around a core price. If you see the stock is down because of bad news and should be trading 40% higher you have an opportunity to make 40% in the short term. If you know that some bad news is going to affect the price of the stock because it has in the past, you can short the stock and make money as it goes down.

I always seem to learn about new companies by researching my Core companies. I highly recommend the strategy. It has allowed me to beat the analyst to the punch.

If your still in Intel get out now.

I have been out of Intel for a while. Sorry for the late notice. It wasn't making that 20% gain I like to see in stocks. With the news I just read about this anti trust lawsuit thats creeping up I have to say exit now!