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| 1. Jesse Livermores Secret To Success
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| 2. Home page investor image explanation
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| 6. How to win in the stock market
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| 7. Commandments to follow
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| 8. 10 Rules for Investing
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| 9. How to survive a stock market crash
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| 10. William J ONeil, CANSLIM
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| 11. Barry Ritholtz keep it simple stupid
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| 12. Gerald Loeb how to win
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| 20. Indicators Introduction
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| 22. Richard Wyckoff method
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| 23. Richard Wyckoff Waves of Price and Volume
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| 24. Richard Wyckoff is a success story
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| 25. Richard Wyckoff logic not working, this maybe why?
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| 26. Richard Wyckoff studied Jesse Livermore
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| 27. Bob Evans, renowned Wyckoff teacher
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| 28. Tim Ord, Secret Science of Price and Volume
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| 30. William Gann life story
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| 31. William Gann Law of Vibration
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| 33. Wyckoff method improved1
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| 34. Wyckoff method improved2
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| 35. Original Wyckoff and Wyckoff 2.0
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| 36. Wyckoff 2.0 vs Others
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| 37. Wyckoff 2.0 and Volume Spread Analysis
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| 42. Cycles for short term speculation
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| 48. RTT Wyckoff Short Term model
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| 51. Proprietary Indicators (PI)
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| 52. Multi Time Frame (PI)
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| 55. PI: RTT TrendPower OBV
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| 56. PI: RTT On Balance Volume
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| 58. PI: RTT Rainbow Bands
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| 61. PI: RTT Steps of Cause and Effect
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| 62. PI: RTT Wyckoff Strength Weakness
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| 63. PI: RTT Wyckoff Price Waves
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| 64. PI: Proprietary Indicators Caution
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Indicator Library
Alpha Stock Scanner
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What is Alpha within portfolio theory?
Simply it is the excess return of the portfolio (selected stocks) over a benchmark (selected index). By example if the SP500 returns 10% for the year, and your portfolio returns 15% then you have achieved 5% 'alpha'. This calculation can get more complicated when adjusting it for inflation and 10yr note yields, we will leave that to the professionals.
If we roll back a few years, the term was 'relative strength'. This methodology of stock selection has been around since Adam was a boy, Richard Wyckoff compared stocks to his 'Wyckoff Wave' index to find market leaders based on relative strength, Gann and Hurst did similar exercises.
In even cruder terms high alpha stocks are those that are index leaders, the ones that attract the smart money, and those that will lead the index markup process (IE higher prices for the index).
We believe the best approach to manage stock selection is to concentrate on a small basket of stocks, that being a basket of 5 to 100 count. Learn as much about them as you can (chart technicals, fundamentals, EPS, Management, etc) monitor opportunities for trading decisions during periods of price volatility. Your basket of stocks may change over time, but only when other stocks have met your strict stock selection criteria. We also make available a stock watch list that matches the top 100 Benjamin Graham (ak Warren Buffet method) style stocks, so you can scan the best undervalued stocks for great alpha to add strength to your portfolio.
We use our 'Alpha Stock Scanner' to see what is going within an index, to see if there any new shining stars or trends that should be noted.
So lets have a look...
First we select our desired index to seek 'Alpha'. Note that you will see within the index selection list 'custom index builds'. Details of each index are available to members.
Click for popup. Clear your browser cache if image is not showing.
Then when can monitor stocks/ETFs within the index percentage over/under simple moving averages of either 50,100 or 200 days. We can see divergences, trends and participation.
Click for popup. Clear your browser cache if image is not showing.
Finally review the individual stocks/ETFs within the index. Sort, filter and rank selections on current date or previous date (back as far as two years only). You can view an individual 'Alpha Chart' for each symbol (click the symbol) and review further symbol information (click name).
The 'Alpha Trend Meter' is a graphical view of the stock's alpha performance over the previous 20 days and six months (subject to RunDate entered).
1) Green is positive alpha.
2) Dark green is very strong positive alpha. *
3) Red is negative alpha.
4) Dark red is very strong negative alpha. *
5) Gray is no measure recorded.
* Note: An RTT Indicators membership is required for the Alpha Scanner Full version. Otherwise you will be presented with the Alpha Scanner Lite version.
The alpha trend is NOT a price trend determination, it is solely as a measure of how the selected security is performing against a selected index. Price trend can be best judged by the use of the 'RTT TrendStatus' (subject to your subscription level). The 'Alpha Chart' displays the alpha trend in more detail. The 'Alpha Trend Meter' is the best tool on the web to gain a higher alpha for a selected stock over a selected index.
Click for popup. Clear your browser cache if image is not showing.
Clicking the symbol will produce an 'Alpha Chart'. One of the hardest tasks with investing is letting your profits run, and run and run! Monitoring the alpha of your stock portfolio will assist you greatly in this quest. Do you see any reason to sell AAPL in the chart below? AAPL alpha versus the SP100 index is a strong upward trend, and as yet to abate. BUY on dips and HOLD for more gains (Note: Combine alpha studies with other tools to watch for a market top).
Click for popup. Clear your browser cache if image is not showing.
The above is all you will ever need to build a portfolio to secure positive alpha!
NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net
Investing Quote...
...“After spending many years in Wall Street and after making and losing millions of dollars, I want to tell you this: It never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!”...
Jesse Livermore
..“Successful speculation requires staying on top of changes in industries and companies that either create new industries or improve on existing industries. The majority of your profits will come from these two … The shrewdest traders throughout history all adapted the skill of reactionary change, as the market constantly presents new and different opportunities.”..
Bernard Baruch
.."It Ain’t What You Don’t Know That Gets You Into Trouble. It’s What You Know for Sure That Just Ain’t So"..
Mark Twain
..“One must search through a maze of complex and contradictory details to get to the significant facts … Then he must be able to operate coldly, clearly, and skilfully on the basis of those facts.” The challenge for the successful speculator is “how to disentangle the cold hard facts from the rather warm feelings of the people dealing with the facts.” Moreover, “if you get all the facts, your judgment can be right; if you don’t get all the facts, it can’t be right”...
Bernard Baruch
Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.
Nobel Laureate for Economics Paul Samuelson
Created on: 11/29/2010 2:52:58 AM Last Update: 2/7/2013 6:47:12 AM Posted by: RTT
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We at readtheticker.com hold the view that a mix of stock chart technical analysis, Richard Wyckoff, William Gann and Jim Hurst methods plus market fundamentals allows the investor to formulate a very sound market opinion. These attributes are mutually inclusive and must be weighted equally before investing or trading in any Stock, ETF, Currency, Bond, Commodity, CFD or Mutual Fund
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