Super Stock Picker Forum

About Strategies => How it works => Topic started by: Super Stock Picker on November 02, 2006, 10:52:51 PM



Title: How to build your own portfolio following our advice
Post by: Super Stock Picker on November 02, 2006, 10:52:51 PM
In this previous topic, we have explained how we calculate the performance of our portfolio and how we come to the numbers published on the web site:
How do we calculate the portfolio performances? (http://www.superstockpicker.com/forum/index.php?topic=3.0)
 
But, that might be practically quite difficult to build your own portfolio this way if your capital is not big enough or if your commission fees are too high.
 
Another, more practical way to follow our portfolios is to open positions with always the same amount of dollars. It is much easier and cheaper to do, but you will then not be always 100% invested and your returns will be different from what you see on the site. It will always be in the same way, but as you maintain a cash position that varies depending on the number of stocks in the portfolio, you will reduce the amplitude of the price variation.
 
Having an hybrid strategy where you open the positions with a dollar amount that depends on the size of the cash available is also a good way to do, but then, you will not have the same percentage invested in each stock in your portfolio as what we use to build the portfolios on the web site. Changing the relative weight of the stocks on hold can also have an impact on your returns compared to us.
 
So, there are different ways to follow our portfolios, the best one for you really depends of your situation in terms of capital, commission fees and how close you want to track our performances.