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Investing 101: 5 Simple Steps to Find Winning Stocks Like a Pro
1. 5 Steps to Smarter Investing
Investing 101:
5 Simple Steps to Finding
Winning Stocks Like the Pros
Sandy Chaikin
July 14, 2015
2. 5 Steps to Smarter Investing
Chaikin Analytics Disclaimer
Chaikin Analytics LLC is not registered as a broker-dealer or investment
advisor either with the U.S. Securities and Exchange Commission or with any
state securities regulatory authority. Chaikin Analytics does not recommend
the purchase of any stock or advise on the suitability of any trade or
investment. The information presented in this webinar is generic in nature
and is not to be construed as an endorsement, recommendation, investment
advice or any offer or solicitation to buy or sell securities of any kind, but
solely as information requiring further research as to suitability, accuracy and
appropriateness. Users bear sole responsibility for their own investment
research and decisions.
9. 5 Steps to Smarter Investing
Why Listen to Sandy:
• Beat most pros and S&P
• Portfolio +16% YTD
• Found 2 best growth stocks
in 2014: SWKS + 156%, LUV
+126%
• 15 minutes/day
• Novice in 2012
11. 5 Steps to Smarter Investing
So You Can …
have Peace of
Mind and …
Gain confidence
12. 5 Steps to Smarter Investing
And …
Secure Your
Retirement!
13. 5 Steps to Smarter Investing
And have more fun along the way…
14. 5 Steps to Smarter Investing
Turkey – August Vacation 2014
15. 5 Steps to Smarter Investing
Confidence Booster – I can do it!
“Sandy affirmed that I know more than I think I
do about how to use the tools and because she’s
using them successfully with a similar novice
background to mine, then I can too. It was a real
confidence booster.” WS
16. 5 Steps to Smarter Investing
At the beginning…
• 401K Plans
• Mutual Funds
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Then, a professional manager
18. 5 Steps to Smarter Investing
Then came 2008
• Advised to hold, not sell
• Portfolio down 40%
• I paid a fee for this???
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My problem … who to trust?
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The Challenge: too much information
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Solution: Chaikin Analytics
22. 5 Steps to Smarter Investing
5 Steps to Success:
How to Find the Best Stocks
1. Use a proven methodology you trust
2. Play good offense to find winners
3. Use industry groups to find more winners
4. Know when to buy and sell - signals
5. Play good defense to avoid landmines
23. 5 Steps to Smarter Investing
A disciplined approach
24. 5 Steps to Smarter Investing
Testimonial
An Expert’s Endorsement
“… self-directed investors need a very structured and
easy-to-use system that will keep them out of trouble.
That’s the way Chaikin Analytics was designed.”
‒ Tom Lloyd, author and lecturer
25. 5 Steps to Smarter Investing
Step 1: Use a Proven Methodology
The Chaikin Power Gauge
Simple but not Simplistic
26. 5 Steps to Smarter Investing
More going
on than the
eye can see
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The Chaikin Power Gauge
Clear, tested summary of a stock’s potential
Price/Volume Activity
• Price Trend
• Price Trend Rate of Change
• Chaikin Money Flow
• Relative Strength vs. Market
• Volume Trend
Expert Opinions
• Earnings Estimate Revisions
• Short Interest
• Insider Activity
• Analyst Opinions
• Relative Strength vs. Industry
Financial Metrics
• LT Debt to Equity Ratio
• Price to Book Value
• Return on Equity
• Price to Sales Ratio
• Business Value
Earnings Performance
• Earnings Surprise
• Earnings Growth
• Earnings Trend
• Earnings Consistency
• Projected P/E Ratio
29. 5 Steps to Smarter Investing
Financials: Price to Sales
30. 5 Steps to Smarter Investing
Expert Opinions: The Secret Sauce
32. 5 Steps to Smarter Investing
Testimonial
Not Enough Time
“I am an individual investor and trader. There is not
enough time in my day to do the work Chaikin Analytics
puts before me in minutes. I am 'wowed'.
And yes, you can quote me.” ‒ Cheryl (California)
Chaikin Analytics Subscriber
33. 5 Steps to Smarter Investing
Step 2: Play Good Offense
34. 5 Steps to Smarter Investing
What to Buy: Classic Bulls
• Strong Industry Group
• Power Gauge Rating Bullish
• Price Trend Up
• Relative Performance Strong
• Chaikin Money Flow Strong
35. 5 Steps to Smarter Investing
American Woodmark… +38% YTD!
36. 5 Steps to Smarter Investing
LUV +126% in 2014
-20% YTD 2015 – loved it and left it!
37. 5 Steps to Smarter Investing
Centene (CNC) +41% YTD
38. 5 Steps to Smarter Investing
Testimonial
Made $4k My First Week:
In my first week using your system I made 4K on
a simple call trade on CNC. thank you... your
system is so easy to understand.
- Martha 6/17/15
39. 5 Steps to Smarter Investing
Step 3: Use Industry Groups
40. 5 Steps to Smarter Investing
Home Furnishings/Appliances Industry Group:
41. 5 Steps to Smarter Investing
Buy Signal: AMWD +38%YTD
43. 5 Steps to Smarter Investing
Testimonial
“Chaikin is in good company: one way to locate a
good stock is to locate the right industry.
Chaikin’s approach recommends both specific
stocks and industries to swap for weaker
performers.”
– Mike Hogan
57. 5 Steps to Smarter Investing
$8k In 2 Days!: “Just wanted to
thank you for the word on ESL. Bought
puts on Wednesday (6/3) for $1,700
and sold them this morning (6/5) for
$10,200! That's awesome!"
- B.W., Chaikin Analytics Subscriber
6/5/15
58. 5 Steps to Smarter Investing
ESL Today: -13% from 5/31/15 (-15% YTD)
59. 5 Steps to Smarter Investing
The 5 Steps: Recap
1. Use a proven methodology you trust
2. Play good offense to find winners
3. Use industry groups to find more winners
4. Know when to buy and sell - signals
5. Play good defense to avoid landmines
60. 5 Steps to Smarter Investing
“I just watched Sandy’s webinar ….
Fabulous!!! I’ve sat through several other
Chaikin webinars. Hers convinced me that I
am ready to start investing using Chaikin. ”
‒ Chaikin Analytics Subscriber
62. 5 Steps to Smarter Investing
Now you can have …
confidence
and ….
Peace of
Mind!
63. 5 Steps to Smarter Investing
Your Next Step: Chaikin Analytics
64. 5 Steps to Smarter Investing
3 Mo. Real World Price $585
Webinar Special:
Expires Midnight (EDT) Friday 7/17/15
Only $399
www.chaikinanalytics.com/sandy
Offer Code: SANDYQTR
Or contact 877-MYPORTFOLIO (877-697-6783)
sales@chaikinanalytics.com
For Your First 3 Months of Chaikin Analytics
65. 5 Steps to Smarter Investing
Fast Action Bonus $399
Subscribe by 12:00am ET, Tonight
and Take Additional $51 off
Only $349
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For Your First 3 Months of Chaikin Analytics
66. 5 Steps to Smarter Investing
Start Investing Smarter Now:
Get 3 months for the price of 2 + $Hundreds in Added Value
• $349 for a quarterly subscription to Chaikin Analytics – save
$200!
• 3 month subscription to Chaikin PowerSuite Premium – save
$150!
• FREE hands-on tutorials – help you set up and use all the
features and apply to your trading and investing style
• FREE Subscriber-Only Open Forums – live bi-monthly sessions
show you how to make money now
• Daily “Morning Insights” – Chief Market Strategist John Schlitz
recaps the previous day, what to expect today, specific
buy/sell stock ideas
67. 5 Steps to Smarter Investing
From Here to Hawaii
“I followed your AMZN trade …. Great trade!! Profit covered
next year's total cost of our two months in Hawaii, after
taxes! My wife thanks you and I thank you. ― RW
69. 5 Steps to Smarter Investing
Stock of the Week 02.01.15
70. 5 Steps to Smarter Investing
Testimonial
“OMG. As you suggested bought some MYL 2 days ago
and added to my position with Relative Strength signal
first thing this am. Already up 15%. I am a True
Believer!" —Anne G 4/8/15
71. 5 Steps to Smarter Investing
Free Benefit: Power Gauge Reports
72. 5 Steps to Smarter Investing
Free Benefit: Portfolio Health Check
73. 5 Steps to Smarter Investing
Portfolio Health Check: Earnings This Week
74. 5 Steps to Smarter Investing
Testimonial
“On the strength of Chaikin
Analytics, I’ve made enough money
to pay all my living expenses for
the past 18 months and consider
managing my money now "my
job", because in using Chaikin
Tools, I can earn much more than I
could in the workplace. My
girlfriends are a bit in awe.”
‒ PH, Chaikin Analytics Subscriber
75. 5 Steps to Smarter Investing
Testimonial
Exceptional Service
“Your after-sales service has been exceptional.
It's like having my own team of professionals
behind me, wanting me to succeed”
‒ D from Canada
76. 5 Steps to Smarter Investing
From Here to Vail, Colorado – August 2015
77. 5 Steps to Smarter Investing
Chaikin Analytics
www.chaikinanalytics.com/sandy
Or contact 877-MYPORTFOLIO (877-697-6783)
sales@chaikinanalytics.com
Offer Code: SANDYQTR (case sensitive)
Sign Up Today!
78. 5 Steps to Smarter Investing
Follow me on
@SandyChaikin
/SandyChaikin
Sandy Betner Chaikin
Editor's Notes
S&P +2% YTD. Average YTD for my portfolio: +28%.
I own stocks like Centene - +50% YTD, Skyworks +46% YTD and American Woodmark +40% YTD and other winners. Own 11 stocks
Three years ago novice – invested only in mutual funds.
Now consistently find winning stocks …. Found 2 best stocks of 2014: Skyworks + 156% in 2014, LUV +126%
and beat most pros. …. Barron’s: 4 out of 5 institutional money managers underperformed S&P last year.
Spend 10-15 minutes/day. You can do it!
Hard to put a price on confidence – now make own investment decisions, after decades of relying on professionals. Great feeling to manage my own money …. And I’m making a lot more money doing it myself.
I don’t assume someone else will be as interested in increasing my portfolio as I am … we each need to take control.
the profits I’ve realized enable Marc and I to enjoy perc’s …. Are going to Vail this August.
Think about how you’ll spend your profits. I’m going to give you the tools that’ll empower you to make it happen.
I started investing in the 70’s, with my company 401K plans.
My choices were in mutual funds, did very well.
Down payment on my first house. No complaints!
Portfolio grew, successful marketing exec – launched one of top men’s fragrances for L’Oreal.
Funds weren’t performing as well. felt I needed pro. Got a referral to highly regarded advisor – hired thinking I was doing the right thing.
Sold everything and bought 8-10 mutual funds to replace the ones he sold, which Marc says is standard procedure …. And, way too many.
Lost 40% between his mutual fund choices, the stock market meltdown in 2008 and his advice to hold on the way down – called him frequently to suggest we sell.
My instincts were right – to sell. No confidence in myself.
He’s a buy and hold investor … as you’ll see from the examples we’ll go through, buy and hold just doesn’t work any more.
I lost >40% of the value. Sound familiar?
And … Paid fee!! ..... Disillusioned, thought I was doing everything right. Had to make a change.
So, after the meltdown, I took the money out of advisor’s firm. But, had a problem – who to trust??
My instincts told me to handle it myself, but …
Overwhelmed by too much information - didn’t know where to begin. Just published an article on info overload on Nasdaq.com.
More than 250 million visitors hit financial sites each month for unlimited market opinion and research. Most of it un-tested and unsubstantiated.
Too often, on-air recommendations and picks are not backed up with sound data or back testing. Rather, raw emotion of personalities can influence the pick….”
Put money in Vanguard S&P 500 Index fund until Chaikin in early 2012 w/stocks. Still have $ w/Vanguard today, very low fees - $2.
portion in the S&P500 Index fund – diversification. Started investing w/chaikin method 3 years ago – now mostly in stocks.
Was 2008 a wake-up call for you?– it focused me on taking control of my own money.
I use Chaikin Analytics to find individual stocks – consistently find the winners and outperform the S&P500 …. Can quickly tell from looking at the chart, when to get out.
cuts through the clutter and focuses me on the most important information affecting a stock’s price.
Don’t need to be a stock market expert like Marc to master it.
Chaikin method has kept me focused and gives me the conviction to follow the plan and not let my emotions get in the way.
Step 1: Methodology starts with the Chaikin Power Gauge rating. A simple but powerful indicator of a stock’s potential over the next 3-6 months. Rates 5,000 stocks.
Chaikin Power Gauge model crunches all the numbers and points to the direction a stock is heading…. Like a GPS for stocks.
Designed to be easily understood: Green = bullish; red = bearish
Culmination of marc’s 45 years on wall street, creating tools for pros. Came out of retirement in 2009 after the financial meltdown to start Chaikin Analytics to help the millions of individuals like me, who were disillusioned with Wall Street are were now handling our own investments.
Marc gave us the same sophisticated info & tools he gave the pros – but distilled it into simple graphics that we can easily understand.
The overall rating is simple: from very bullish to very bearish, but components and algorithm under the surface are far from simple.
It’s based on 4 major components, with each component made up of 5 factors – is what institutional investors look at every day.
Is the centerpiece of all our tools.
Since 2012 I’ve been investing in stocks, using the Chaikin Power Gauge as my guide. Started with Comcast and Ebay with the free iPhone app, and now use Chaikin Analytics, available on ipad and desktop…the ipad Analytics platform is what I’ll be showing you today. At end of presentation, I’ll go to the interactive desktop app - type stocks you want to look at in the question box and I’ll get to them at the end.
Buffet focuses on Financial Metrics – they are the value metrics he looks at. Price to Sales Ratio important – steer clear of over-valued stocks – being dumped now: DDD, Pandora, Yelp & Coca Cola.
Short interest : smartest guys on Wall Street; short for one reason: they think it will go down. Bullish = not shorting = good.
For Insider Buying Activity – insiders only buy for one reason … they think the stock will go up. Bullish = insiders buying = good.
Sold SWKS when PGR turned bearish 7/1 at 106 - +46% YTD.
Other than these 3 factors, focus on the overall rating and the 4 major components. When buying a stock, look for “Very Bullish” (another criteria). Go with the best = my criteria.
So, Step one is using a proven methodology – chaikin power gauge.
Step 2: Play a good offense to find the winners and put the odds in your favor.
Here’s the criteria for what I look for in a stock. Real simple. I start with only buying Classic Bulls.
Charts are from CA for ipad, also have desktop. Designed to be easy to read – they do the analysis and work. Look for green.
If all you get out of my webinar is go with green power gauge stocks and avoid red ones, you’ll make money.
Keep 8-10 stocks in my portfolio – invest same amount initially, double up on winners.
Was in one of strongest industry groups in 2014– Transportation Air – helped by drop in price of oil. now middle of pack (step 3). Found LUV last June by scrolling thru top Industry Groups. bought june 12, 2014 at 25. Bought more 9/11 at $33. Indicators lined up all 3 times.
Market driven by fear and greed. Airline scare mid-Oct re: Ebola, LUV based in Dallas where first patient died – lack of confidence. Dipped to 28.52 mid-Oct. Bought more – conviction based on green indicators….and price of oil going down.
became a big part of my portfolio – sold most to take profit 3/30 at $45. Then, personality change mid-April. Sold rest 4/21 at $43 april 21 – now $33 – down 27% from when I sold most.
Important to know when to leave the party. Can’t fall in love w/a stock – even one that returned 126% last year. Is now -20% YTD.
Hedge fund - $400MM – heavy in airline stocks. Still owns LUV.
Bought 2/2 before earnings at $52. more recently at 68 – dipped 20% from it’s peak.
Now 73, +40% from 2/2.
From marc’s webinar yesterday!
Zacks Research: 65 Industry Groups – investing in stocks in strong industry groups outperforms stocks in weak groups.
When shopping, look in strongest groups - we rank based on the Power Gauge rating – very unique. Very Bullish stocks are listed first - Cream rises to top. Keep “watch list” of stocks to buy.
Great way to narrow the universe of 5,000 stocks to just the strongest stocks in strongest industry groups. Can you see that?
I’ll demonstrate how I use industry group strength to find best stocks to buy or add to my watch list. Medical Care #8 out of 65. been one of strongest – Obamacare.
I owne aetna, anthem health, contene, united health,
Will drill down on some charts, but will first show you alerts view
Stock up 3% today – would’ve already made 3% if you bought at open.
Home health care, skilled nursing, rehab facilities. At a 52 week high – wait for a pullback.
Step 4 is really important.
Tells you when to buy and sell. Available ONLY in Chaikin Analytics. 6 pairs.
FLXS now $44, +16% from 6/1 watchlist.
AMCX now $85, +13% from 6/1.
+13% from 6/1 watchlist
.
In spring went shopping - medical products strong group. Put BABY on my watch list.
oversold buy signal triggered 4/15 at 38. searched news, were reporting that night. Bought that night at close. Love earnings plays.
Spiked up 10% next day on good earnings report. Sold. Bought it back on dip.
Now classic bull, making a new high … and momentum breakout signal! Stock is +18% YTD
Signals add confidence.
Analysis on ANY stock list – my watch list. shows me when my stocks are reporting earnings, and much more.
it’s at my fingertips – rotate ipad to view.
Investors spend most time focused on finding the next big winner. No one asks “what’s the next big loser?”
But, it’s important to focus on this step.
Managing risk and avoiding losses are just as important as finding the next big winner.
Wouldn’t you love to know to avoid stocks like DDD, LinkedIn, Athena Health (unless you short)?
We’ll look at how I identify the losers before they tank …. So you get out before it’s too late, or trade them as options.
don’t own bearish stocks, but when you create your watch list in Chaikin Analytics, be mindful of not sticking with losers – easy to identify.
Anyone owning energy stocks last aug/sept would’ve been forewarned in drop.
have the conviction to not consider them, or get rid of them if you already own them!
It’s crazy to hold on to losers – sell and replace with bullish stocks like Centene or Skyworks, or Anthem Health – or wait for the right opportunity to reinvest those funds.
Buy and hold doesn’t work anymore. Remember 2008??
Don’t get romanced by the recent spike in price.
So, let’s recap the steps I took to build my portfolio, based on the Chaikin 5-Step Method.
now you can make your own investment decisions. Don’t need to rely on someone else.
Great feeling to manage my own money …. And I’m making a lot more money doing it myself. I’m up 28% YTD, S&P +2%.
take control. You can do it!
I’m living proof you don’t have to be a financial expert to make money in stocks …. If you follow a proven methodology, like chaikin.
Remember, I’ve only been investing for 3 years. Started off with $5k in ebay and $5k in comcast.
One trade should pay for the annual subscription.
If you follow the steps the way I do, I don’t see how you wouldn’t make more money. Any one of the trades I showed you today more than pays for an annual subscription. … and that just covers the last few months
Remember, I started <three years ago investing $5k in comcast and ebay.
Barrier to learn something new. We train you with initial small group demo to walk you through all the features, plus bi-weekly forums for subscribers only – highlight what to buy now, answer your questions.
We want you to succeed. Invest a lot of our time in training you.
Source of many stock ideas – featured stock = 66% correct YTD. Alcoa, Skyworks, Amgen, Lululemon, Amazon, etc.
Market Insights alone can guide you on stock selection, if you won’t want to research yourself.
(MI $495)
Special editions when extraordinary events happen in the market.
Is how I knew to by centene and that they were reporting that week – up 10% since I bought it 2 weeks ago.
Deep dive on any of 5,000 stocks.
Analysis on ANY stock list – shows me when my stocks are reporting earnings, maps them from strong to weak, recommends swaps.
Imagine having this detail on your stock or watch list – are you getting this now from your portfolio manager? I doubt it.
Analysis on ANY stock list – my watch list. shows me when my stocks are reporting earnings, and much more.
Elbit Systems reports NEXT week. PHC shows THIS week.
it’s at my fingertips – rotate ipad to view.
My profits paid for two week vacation this past August to Turkey….and this year’s vacation to Vail.
So I hope you’ll sign up today.
Thank you – you’ve been a great audience. I hope you had fun and now feel empowered to take control of your investments.
Turn over to Amy for questions.
Thursday 3/19 website for women – cpt website to register. We’ll also send invitation Wednesday, and again on Thursday morning.