How To Be A #1 Stock Picker - Part 2

How To Be A #1 Stock Picker - Part 2
Photo by Martin Ceralde / Unsplash

I have a new topic to talk about but first let me add a thought to my previous letter to you.
The other day, I talked about how being consistent was one of the keys to becoming #1. I don't think I have ever heard anyone every talking about this simple reality. But being consistent is a key to long term success.
Most people focus on trying to find a technique that will make them a million dollars. But most people should focus on finding one good technique that works all the time. I call that a robust technique.
Let me shift to another trading concept that can make you a lot of money. It’s also related to the consistency concept.
I call this concept Go Where The Money Is.
The old story is that they asked the famous bank robber, Willie Sutton, why he robbed banks and he replied, “that is where the money is.”
And that is what we must do.
Go where the money is.
I use several techniques for selecting my stocks to buy. The best fundamental technique I use I call Best of the Best because it attempts to find the absolute best stocks to buy.
The technique uses a very strict criteria to determine the Best of the Best stocks to buy.
But at one point last year, the Best of the Best list came up with NO stocks to buy. Zip! Nada!
Well, my job is to make money trading and it is hard to make money without anything to buy.
So you want to have a technique for selecting stocks and I like the Best of the Best technique the best.
But my job is to make money. Period.
If my main technique is not giving me any stocks, I still have to make a living so I need something to buy!
So I followed Willie Sutton’s advice and went where the money is.
Every day, the stock exchanges show the stocks that gained the most that day. They also tell you the stocks that hit 52 week highs. Right there are two techniques for finding the leaders in the market. In particular, the 52 week high list tells you what the market thinks.
Some of the stocks have to be rejected because of special factors like they are subject to a take over bid or invented sliced bread. So they have to be reject because it is too late for us  to make money.
But look through the list and pick the ones with the best fundamentals to buy (I use to do the Best of the Best criteria on the stocks.) They may fail the Best of the Best criteria but get the ones with the best fundamentals. You will be buying the leaders in the market. In other words, you will be going where the money is like Willie Sutton.
Our job is to make money, not be right or clever or good looking. So we must consistently go where the money is.
Something will always be in a bull market. Your job is to buy those stocks. Don’t get doctrinaire. Don’t get stubborn. Go where the money is.
That is one of the ways I was able to keep and maintain such a long term #1 ranking for my newsletter Wall Street Winners. I’m only focused on making money by going where the money is. Thanks Willie for the tip.
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