The Benefit of Quantum upon Quantum

Underlying equity. 

How do you protect against fraud and / or investor-unfriendliness?

You’ve done your research. 

All good. 

Stock is a buy. 

Meets your parameters. 

What’s the next step?

Protection. 

You buy quantum upon quantum. 

You don’t plunge into the stock with all you’ve got to give. 

No. 

You put in a quantum.

Then you wait. 

Better opportunity arises.

Fundamentals haven’t changed. All still good. 

You put in another quantum.

Quantum…

…upon quantum. 

That’s how you keep entering the stock till it keeps giving you a reason to enter. 

Year upon year. 

Between quanta, you’re studying behaviour. 

You’re looking for investor-friendliness. 

Your next quantum is only going in if investor-friendliness continues.

No more investor-friendliness?

No more quanta.

You wait.

Will investor-friendly behaviour resume?

And you wait.

Is it coming?

Yes. 

Good. 

Upon buy criteria being met, next quantum goes in. 

Not coming?

At all?

Ok. You’re looking to exit. 

Market will give you a high to exit. That’s what markets do. They give lows, and highs. 

Wait for the high. 

High?

Exit. 

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The Age of Shocks

We are in it. 

Bang in the middle. 

There’s some shock almost everyday. 

Even Yellen’s words have shock effects. 

Had anyone even heard of Yellen a few years ago?

Natural disasters, terrorism, scams, frauds, upheaval…

…well, you have no choice…

…but to incorporate them into your market strategy. 

If you don’t, well, God bless you and God help you. 

So, where do we stand. 

Definitely towards value. 

Growth – hmmm, we’ll take growth after we take value, in a stock picked up for value. 

We’re not following any growth strategies. 

Let growth happen as a matter of course. 

We’re not entering something which is in the middle of growth. 

We’re entering it before its growth potential is apparent to everyone. 

Why?

Stocks, whose growth is apparent to everyone, are very susceptible indeed, should they show even one bad quarter. They can be cut down to half their size even if one ruddy quarter goes out of line. That’s the problem in the age of shocks. 

What about stocks with growth potential which are in the doldrums?

Well, bad quarters are the norm for them, temporarily. One more bad quarter is not going to make much of a difference. It will make a small but digestible difference. Nowhere near the effect the bad quarter will have on a growth stock. 

Yes, the way to go is contrarian. 

We’re going contrarian with our eyes open. 

We’re not picking the dogs of the Dow, or the rats of the Sensex.

We’re picking gems people are throwing into the dustbin. 

What’s this dustbin?

We’ve made this dustbin. 

In cyber-space. 

It scans what people throw away. 

It couples 4-7 algorithms, makes them into a mother-algorithm, and scans. 

Today, one doesn’t need to know how to programme to achieve this. 

One just puts the algorithms together on any leading equity website. 

One concocts one’s dustbin. 

One looks in the dustbin everyday. 

What have people thrown away?

Anything that looks valuable?

No?

Let’s move on. 

Yes?

Lovely. Lets take a closer look. Let’s take this stock that’s looking valuable, and let’s put it through the works. 

Let’s fully analyze the stock. 

We do our analysis. 

Takes us a day or two. 

It’s yes or no time. 

No?

Move on. 

Yes?

Look at the charts. Pick up accordingly, in the next day or two. 

Quantum?

Small. 

So on and so forth.