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In a nutshell, we strongly outperformed all major indices during these three years.
HOW WE COMPARE -- SOLID GOLD
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North of the Blue |
Dow-Jones Industrial Average |
Standard & Poor's S&P 500 |
| 2006 |
51% |
32% |
14% |
| 2007 |
40% |
10% |
5% |
| 2008 |
42% |
-34% |
-37% |
2009
Quarters 1 - 3
(1/2/09 - 9/30/09) |
49% |
9% |
13% |
(1) To see a graph of this comparison chart, please click here.
(2) To see North of the Blue's historical portfolios, please click here.
(3) To see North of the Blue's 2009 year-to-date (September 30, 2009) stock details, please click here.
North of the Blue is divided into a number of Portfolios. If you look at the detail charts referred to in the three notes above you will see that we don't stay with an investment for very long unless all of the signals point to a trending stock that should be held. When we do lose the loss is small. If we are so great, you ask "Why do you lose?" Because we are human and not perfect. We have identified stocks that lost money and tried to explain why. Usually the reason is because we did not follow our own rules.
To understand what our rules are and what they mean look at the "Education" links on our home page or click on the first entry in our "Rules to Riches" tab on our home page.
Here's an example of following and not following the rules for the same stock during this year. My brother and I both eat at The Cheesecake Factory (CAKE). We talked about the long waits for seating even in these very large restaurants. Over the Christmas and New Year holidays the wait times were even longer. That, we both thought, should be a great investment. On January 5 we bought the stock at about $10.00 per share. And then we waited ... and waited ...and waited for the stock to go up. After the stock had fallen a dollar I ran the chart and saw that I had violated our own rules. We both sold after losing 10%. The Stochastics had fallen and we had ignored them. In March the stock displayed a very clear Stochastic-W. On March 10 I bought back in at $7.50. The stock fell below the Blue Moving Average on June 23 so I sold at $16.74. After some oscillations, the stock began a strong trend on July 14. I bought the stock back at $16.55. On August 4 the stochastics crashed and I stopped out at $20.00.
All in all The Cheesecake Factory gave me a very decent ride. In the first of the year I lost 10% because I violated our rules. However, when I went back to using our rules, my first gain was 123% from March through June. The July 14 through August 4 period gave me a 21% gain. Rules and checklists -- you can't live without them. You'll see other examples as you look through our various portfolios.
There are two factors that should be obvious but are often overlooked. Indeed, they were the hardest part of the North of the Blue programming to do. First and foremost, stocks don't go up all year long at some point they go down. Determining when they start down is he most crucial part of our North of the Blue algorithms. With NOTB we can see exactly when to sell.
On rare occasions we make bad decisions. We are only human. But, when we carefully review the charts we see the problem and immediately bail out. Our loss periods are very short.
Conclusion, the program "rides" the gains and "dumps" the losers. The result is large gains and small losses.
If I can get those kinds of returns from this program I am definitely interested. How do I get started? Click the box.
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