PRACTICAL APPLICATIONS

COMPARE THE GAIN/LOSS PROSPECTS OF A PORTFOLIO OF STOCKS

  

To see the block traders' perspective on the gain/loss prospects for your portfolio of stocks:

  • Login as a member.  If you are not yet a member, please log in as our guest by registering for the free 30-day trial membership.

  • Logging in brings you to the main menu page.  Enter the ticker symbols (separated by a space) for all the stocks in your portfolio.  Add hypothetical stocks (such as buy candidates you are investigating) as you like.  Click on the adjacent button, which appears as below:

 


Give the list a name in the optional title box, if you like.  Click on the Draw a Reward:Risk Chart button and your portfolio will appear as a Risk:Reward (R:R) Chart (the now-familiar baseball-diamond).

Your eye should give you a good sense of the upside and downside center of gravity of the stocks in your portfolio, if the size of your investment in each stock is similar. Where that center of gravity is above the diagonal line through 2nd base, you have more risk (downside) than reward (upside) in your combined holdings. If most of the stocks are on the green side of the diagonal, the portfolio has good upside prospects.

Maintaining your portfolio can be as simple as selling off stocks as they approach or pass the 3rd base foul line, and replacing them with stocks at or close to the 1st base line. 

Remember the volatility issue: Stocks in the infield help keep the portfolio from moving wildly, while stocks in the outfield can provide big gains -- or losses. Not all Utility Stocks are placid, and not all Biotech stocks are wild. It's your money -- build your portfolio with the character that suits you.


PRACTICAL APPLICATIONS:
GAIN/LOSS PROSPECTS FOR THE MARKET


PRACTICAL APPLICATIONS:
LOOK FOR NEW STOCKS TO BUY