
| Services | |
FreeValueStockPicks.Com provides the general public with stock picks the website owner is actually purchasing. It therefore should be noted that the owner has a direct interest in the stocks discussed throughout the site. This website is a hobby and should be used for entertainment purposes only. The owner of the site makes no representation as to the validity or potential of the stocks discussed. Readers should come to their own conclusions after doing personal research before investing. |
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| Methodology | |
| Two primary methods are
being used to pick the stocks mentioned on this website.
Method #1 A computer model seeks out stocks with financials and a history of growth that suggest the current price is well below the true value of the stock. In addition to the value components, the stock and the general market must have technical indicators that suggest a shorter term bottom has been reached. After entering the position, a trailing stop (usually 15%) is placed to protect downside risk. Stocks are also shorted using models that seek out companies with relatively weak financials and an expectation of problems ahead with the individual stock or the sector. Stocks are swing traded with general market trends to enhance accuracy and overall performance.
Method #2 A computer model seeks out stocks with recent, extreme upward momentum. The stock is also measured for value components, but these portion of the analysis is secondary to the momentum. The stock's specific sector must have a recent history of upward momentum. After entering the position, a trailing stop is placed to protect downside risk. The trailing stop is almost always placed at 6% when selected as a momentum stock. |
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| While these two methods are the driving force behind most of the selections, other undisclosed methods will be used from time to time. In most cases, stocks are selected using end-of-day analysis with the idea that new selections will be purchased at the market open on the following trading day. Unless otherwise stated, a trailing stop is entered immediately following the entry of the position. | |
| Disclosure | |
| All securities trading, whether in stocks, options, or other investment vehicles, is speculative in nature and involves substantial risk of loss. We encourage visitors to invest carefully and to utilize the information available at the websites of the Securities and Exchange Commission at http://www.sec.gov and the National Association of Securities Dealers at http://www.nasd.com. You can review public companies filings at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its website. We also encourage you to get personal advice from your professional investment advisor and to make independent investigations before acting on information that we publish. We cannot assure you that the information provided is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements, ratings, or recommendations. Past performance is not necessarily indicative of future results. You take full responsibility for all trading actions, and should make every effort to understand the risks involved. |

