Stock Tutorial & New Simulator Adds

What you will now find is a quick tutorial on how to use Urbanomics added here to the blog. First let’s start off with reading every post that you find here. I know a bit of a shameless plug but reading the posts will give you a little background on the current state of the markets, my stock selections, and more importantly when to make the purchase.

I believe in finding a strategy that works for you and then identifying perfect points of entry to invest in the stocks you’ve selected. While some investors have a top down approach, I don’t attempt to invest in stocks by building an ideal portfolio of diversified investments (that’s what mutual funds and exchange traded funds are for). Active stock selection, a bottom-up approach, allows me to capitalize on the moments where I believe the market has gotten it wrong and the odds are in my favor. This strategy is similar to poker where I then use my chips to make large purchases in a stock that gives me a highly probable opportunity of obtaining the returns…worth my risk.

Example of how it works:

1. Market Research
http://urbanomics.blogspot.com/2008/04/i-dont-believe-underlying-economics.html
http://urbanomics.blogspot.com/2008/04/perfect-storm.html
http://urbanomics.blogspot.com/2008/05/hype.html

2. Stock Selection
http://urbanomics.blogspot.com/2008/05/this-just-in.html
http://urbanomics.blogspot.com/2008/04/touch-my.html
http://urbanomics.blogspot.com/2008/03/picks-based-on-recent-posts.html

3. Stock Simulator
Many of the recommendations that I make will be added to the simulator for research and results tracking. For instance, the post “This Just In” I loved 4 stocks, and our strategy must be working well because a recent update finds these stocks taking off since MAY!!!:

Patriot Coal (PCX) – Since our May 1st posting, this stock has risen from 66 to the low 90s. Damn Gina, can’t believe how on the head we hit this one.
Avid Technology (AVID) – Nice gain from 20.44 to a little over 22 and some change
Owens Corning (OC) – Another nice gain from 20 to 27
Amylin (AMLN) – Solid gains from 28 to 32
Use this link to see for yourself when we selected these stocks that fit our strategy:
http://urbanomics.blogspot.com/2008/05/this-just-in.html

Not all these picks get added to the simulator timely because I actually have a job for a living but also because I patiently wait for the most optimal discounted prices to begin accumulating shares. Here is a list of stocks being added to the simulator:

Added:
New York Times (NYT)
Move Inc (MOVE)

Honorable Mention:
Jeffries Group (JEF) – Getting closer to levels of accumulation
Amylin (AMLN) – I love the action in this stock and think that is has sooooo much upside!