Ultimate in Swing Trading
Possibilities
Yes, we truly believe that
for many the NSP Method in its entirety can potentially
offer "Unlimited Swing Trading Possibilities" and the Best of
All Worlds in short-term stock trading. Keep in mind that
it has produced outstanding performances in testing, and also
real-time, while very simply buying at
the beginning of the week and selling at the beginning of
the following week. This has been powerfully displayed thru the
results of the NSP 100 Index,
NSP 20 and
NSP 10. What could be
an easier approach than that?
Basically, identifying
quality stocks ready to rise is a key factor in any short-term
stock trading successes. Proper entry and exit techniques
are of course paramount. Establishing that "edge" in stock
selection though is crucial to have on your
side. Let's now examine some of the ways that can be
done with the NSP Method. First, to recap some of the
techniques we will be continually tracking going forward into
the future:
1. NSP Eligible Stocks (up to
200)
For starters, the NSP will
generate a list of up to a whopping 200 stocks each week
that meet its qualifications as a top prospect to
consider for trading purposes. Yes, you read that
number right. 200! Each stock will
then be assigned a NSP Power Factor number above
50--absolute minimum to be eligible (the higher the
better).
2. NSP 100 Index
The top 100 in the list of
NSP
Eligible Stocks will go on to become
the NSP 100
Index. In
addition, the performance of the top 20
(NSP Top
20) and top 10 (NSP Top 10)
out of this Index will be tracked as
well. These stocks will be calculated as
being purchased at Monday's opening price and sold
at the following Monday's open.
3. NSP Value Plus
In addition, each of the up
to 200 NSP-eligible stocks will be assigned a
specific buy
price should
prices decline to that level on Monday (or the first trading
day of the week). For any stock which does not then proceed
to meet that specific price on Monday would be eliminated
from consideration for that week. These stocks would also
be considered sold at the open on the following
Monday.
Other Possibilities with the NSP
Besides the very
uncomplicated approaches which have been discussed
to this point, might we only be scratching the surface as
to the possibilities with this group of stocks? The
initial key really is putting an edge on your
side...and managing
the right stock at the right
time. Easier said than done of
course!
What we are
really attempting to provide here each week are
a number of stocks which may have
the potential to produce impressive returns
over about 4-5 days or so. The future is never
guaranteed of course but we'll confidently let the
numbers speak for
themselves.
Before searching for other entry and exit
possibilities with the NSP stocks, it is important to point out
how successful the NSP stocks have been while
only utilizing rather simplistic entry and exit
techniques. Certainly not all of the techniques emphasized
here are necessarily cut in stone however. An ambitious
and/or skilled trader could even potentially utilize
some of these very stocks and come up with a unique
approach. A BIG word of
warning though--more complicated is not necessarily
always better though either. There are so many variables
to consider.
Actual entry strategies could be altered in
so many different ways as an example. For instance,
one could enter either above or only below
the system's specified price...searching for even a better
buy? Maybe only low price, high price, and/or high
volume stocks would even be considered for purchase? Of
course all of that would come down to one's own unique
situation and their personal comfort level. An investment
adviser could be consulted for those purposes when
necessary.
As for exit strategies, numerous tweaks would
also be possible. Stop losses and/or profit targets could be
employed in any number of fashions, or stocks could be held for
longer periods of time than the standard 4-5 days.
That is exactly what could be described as just
so exciting about this method. Using only the most basic
of entry and exit strategies it has consistently
and powerfully outperformed the averages since its
inception in 2001. Keep in mind that the markets have had
their share of bearishness since the turn of the century as
well.
Now of course holding stocks for longer periods
of time can certainly have its share of advantages. For
more information on how the NSP stocks have performed with
longer holding periods please visit the page NSP Longer Holding
Periods.
|