I am regularly asked about the indicators that I use in my investment strategy. To refresh your memory, GOPM (Grow on Other People's Money) is the strategy that I teach in my book, The Confident Investor. It has a couple of main tenets:
- You should only invest in truly Good Companies.
- You probably do not have enough money to have a balanced portfolio of "buy-and-hold" positions in truly Good Companies.
To get around the realities of the second tenet, I have developed a trading methodology to help. This methodology allows you to invest in companies that are currently experiencing a bull market. It also avoids those that are in a bear market. Almost all companies experience times when their stock price drops. This means that you have your money invested when the stock is going up, and it is invested elsewhere when the price is falling.
For the balance of this article, I am going to explain why I have modified some standard indicators. These indicators help to signal the bull and bear action of the stock. This explanation will only be available for registered owners of my book, The Confident Investor. If you own the book, you can register and log in to see the balance of this article. If you don't own the book, you can purchase my book wherever books are sold such as Amazon, Barnes and Noble, and Books A Million. It is available in e-book formats for Nook, Kindle, and iPad.