Does vectorvest work?

[CopaceticT]

Originally Posted by Florida

I never use VV for buy and hold on individual stocks

Here's a theory, please tell me if I am way off base.

1. The only way to make money in the stock market is to find those stocks that are about to skyrocket to huge gains, as opposed to locating stocks that have already had their run up and "the real money" has already or is about to abandon it for greener pastures.

2. My thought was to use VV to locate stocks that have recently been marked a "buy" say for 5 days. Previous recommendations naturally being either hold or sell.

Is a buy recommendation more often than not a reliable indication of future gains?

To round out the theory, some stocks will surely tank as soon as you buy it so I'd have a stop to minimize losses. On the flip side, some stocks may just keep climbing so I'd hold onto those, a floating stop in place to lock in gains, or until a sell recommendation -- so no "cap" or other dollar limit, can you imagine buying Birkshire Hathaway but selling it because it crossed a percentage gain "magic line?" I wish I had that crystal ball.

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Edit to add: "I've got a fever, and the only prescription is MORE COWBELL"

[GMac]

Vector Vest is a GREAT database but that's about it... and as mentioned earlier, recommendations come after the fact -- two hours after closing bell. Back to "great" database, I am still trying to find that one query that will forecast rather than review stock performance as VV provides a series of reports that "claim" to have behooved users by a daily report broken down in percentages. Of 7926 stocks retrieved from VV, "BUY" status accounted 4% net gains, "HOLD" status accounted for 10%, and "SELL" status accounted for 86% of total net gains for one day. I am continuing to search for that one report out of VV because I am a kind hopeful man making a living off trading. So far, my bills are paid because of gut feelings and nothing else.

[CopaceticT]

How did you derive the 4%?