White Paper: Page 1
Our Investment Philosophy
Introduction to Bulls to Bears Inc.
Bulls to Bears is an Independent Stock Research and Advisory Firm dedicated to the Independent investor. Bulls to Bears lives by the philosophy “everyone their own broker”. Our service grew out of the growing trend of individuals wanting to take control over their own financial destiny. Many of these investors had been burned by unscrupulous stockbrokers looking to “churn their accounts” for commission dollars. The advent of the discount broker and the use of the internet gave individuals the confidence to rely on their own talents to pick and execute winning stock trades. Unfortunately confidence quickly turned to dismay as those individual investors learned the reality of the perils of flying solo in the stock market. Bulls to Bears provided the perfect answer to the investor dilemma. Investors could get expert advice, but from a third party who’s compensation was not tied to the number of transactions the investor did. This third party objectivity gave the investors the confidence that our only motive was to bring them winning stock trades! This paper is going to explain our investment philosophy so you can further understand the true value of the experience and knowledge that Bulls to Bears provides its members.
For new investors, dabling in the stock market, it is like when first learning to ride a bicycle. It looks real simple when you watch someone do it. It is another thing to get on and start peddling. Most online traders are apprehensive in their trading. The reason for this is they are not in the market every day. An individual investor is never going to execute the number of trades that will give them the “street smart” confidence to execute their trades with the pinpoint precision that is necessary. This hesitant mind set leads to poor trading results and sometimes even disaster.
The staff at bulls to bears has a decades of trading experience. We are not hesitant in advising you to execute your trades. We have a tendancy to set very strict stop loss parameters to ensure you preserve your capital. We not only tell you what stock to buy, we tell you when you need to be selling to maximize each trade.
Most professional traders make money in the stock market because they develop a strong feel for the market. They also track each individual stock and get a feel for its trading behavior. Bulls to Bears closely tracks its recommendation to learn its behaviors. We track these stocks for months and in some cases years before they become a recommendation to our customers. These actions are what philosophers have spoken about for years. Having wisdom and not knowledge. Knowledge is information and wisdom is experience. The average individual investor can never get to this level because they just can’t spend enough time in the market. Bulls to Bears lives in the financial market place and we bring this wisdom to our clients.
Picking Our Stocks
We have found that the best trading situations are found in stocks that have fallen out of favor with the market. Many times this will be due to a general weakness in certain market sectors. For example technology stocks may be getting hammered as a group, but you will always find one or two stocks in that group that are doing well, but their stock prices are getting hammered like the rest of the group. These stocks are poised for strong upward movement when the pressure is off the group. These stocks usually at or below their book value and are in an oversold territory. Bulls to Bears tracks those sectors, identifies the “diamonds in the rough” and tracks them until they meet our investment criteria.
Stock Picking Goals
One goal is to make sure our clients do not fall into the heard mentality. i.e. Currently gold is the “flavor of month”. To us, this indicates that a bubble exists and there is great risk investing in situations tied to gold.
Another goal is to pick situations that will produce 10% to 15% gains in a months time frame. Day trading for the average individual is just gambling. Long term investing has proven to be perilous when the market hits a rough patches. By setting our goals realistically, we greatly increase our client’s chance of success. Many situations we recommend have potential to show a larger gains, but with proper money management 10% to 15% will provide a bankable differential from those positions that do not work out.
As time marches on, it is becoming more and more difficult for the individual investor to make money in the stock market. Program trading, institutional buyers and instant execution give the professionals an advantage over the individual online investor. Bulls to Bears “levels the playing field” for our clients. Our advantage comes from our market wisdom and our ability move very quickly. This is why we have our internal instant alert systems set up. If you are an individual investor trading with a discount broker you need Bulls to Bears in your trading arsenal.