Quality Above the Noise

pitino“Excellence is the unlimited ability to improve the quality of what you have to offer.” The quote is credited to Rick Pitino, a basketball coach at the University of Louisville. The team at BuySelliQ strives for excellence in order to assist users in achieving their goals. We measure our success by the feedback given to us from our users. We encourage feedback of all forms because it provides valuable insight, so please, don’t be shy!

Shortly after BuySelliQ was launched, we responded to a frequently asked question that you as an investor, has had to deal with at one time. Users asked how to select a stock or an ETF when there are thousands in each category. BSIQ answered by giving each symbol a Quality Score which is posted each week along with the updated price and dot color.

Screenshot 2015-04-24 15.29.12The process is simple in that each symbol will have a “rank” which starts with “0” — no green boxes– and ends with “5” — 5 green boxes — accompanying the symbol. The rank is based on technical data or market generated data. This is relevant because the data is raw statistics versus subjective information. There are no opinions, estimates or subjective items involved in the scoring process. Prudent investment decisions are not based on opinions because we all know how easily those are obtained.

That would be no different than buying a stock on a “hot tip” or a recommendation in a magazine. The idea is to manage your money for the duration and grow both your knowledge base as well as your bottom line. Like anything else in life, there is a right way and a wrong way; the latter will take you out of the game.

The quality score is valuable in a number of ways. The first is obvious in that the higher scores will improve your odds of selecting a vehicle that is going to be profitable. Secondly, if your position was a five and then dipped to a 3 or 4, you know it’s not a good idea to buy more. ALWAYS wait for the RED sell dot because there is no way to know if it’s volatility and temporary or on the way to a sell signal.

One other way you might want to consider using quality scores

Suppose you are working with very limited capital, building a portfolio and want only the high quality scores. You can build a mini fund of quality by only purchasing one or two shares of a position instead of a much larger number. If you are putting in a small amount of money each week or every other week, wait until you have built up enough to buy the next share or two of a quality vehicle. If you don’t have enough to buy every week then build your capital and buy when you are able.

The only discipline to be aware of is the change in the dot color. NEVER talk yourself into going against the trend change. Stay with your program, follow the quality scores and Trust the Dot™!

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