Welcome to RSInvestor!


Dedicated to Timely Financial Market

Research and Profitable Trading Ideas

 

 

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I am a full-time portfolio manager and have been studying and trading the stock and options markets since 1997.  On this site you will find many thorough research reports as well as briefs on all topics related to trading and investing.


About This Site

I created this site initially to capture the vast amount of research that I do to stay ahead of the trading game.  Over the years I have filled notebooks with journal entries, filled directories with Excel spreadsheets full of data analysis, and written several computer programs to help automate the daily research.  My initial goal was to create a single repository where I could put my most worthwhile research to refer to when needed. Ironically, the best place for me was on a web server. 

What I discovered along the way was that my thinking became much more clear, and my analysis much more revealing when I had to formally explain the hypothesis and present the data in a cleaned-up, concise fashion.  I don't claim to know everything about the markets, but what little I can contribute here will hopefully benefit those who visit.  I intend to keep this site advertising-free, because there just aren't enough of those these days.

What you will not find are frequent, specific stock recommendations (there are a few).  Most fund managers and analysts fail to beat the market averages over time.  That is a fact.  They generally get paid for bringing in new OPM, or Other People's Money.  Very few stock pickers get rewarded based on performance.  The exception, of course, is if you pick your own stocks.  So why would you trust someone with your money if they don't outperform a simple, low-cost index fund?  The solution is to educate yourself and take control of your investments. 

I intentionally kept this site simple (some would say "plain") when I started it, because I wanted to focus on the research rather than site design.  I am, however, working on a major overhaul when I get time.  You can see a sneak peek here.


Relative Strength

The "RS" in RSInvestor stands for "Relative Strength", one of the basic principles of successful investing.  In a nutshell, Relative Strength is nothing more than comparing two choices, and making a decision.  Sort of an investing "lesser of two evils".  For example, let's say I like the steel producers for an investment.  To reach that conclusion, I would have to have determined that steel producers offer a better opportunity than all of my other options.  Why do I like steel better than financials, or health care?  Why steel over other commodities such as grains, copper, or any of the groups in the energy complex?  Relative strength gives us the tools to compare our choices, and make educated investment decisions after looking at all the facts.

That was a simplistic explanation, since there are many different types of RS. You'll discover technical strength (chart comparisions), and fundamental strength (earnings, revenues, cash on hand, etc.).  I also do a lot of work with sector rotation, which in and of itself is founded entirely on Relative Strength.  For instance, some stock sectors do better in a low interest rate environment, such as banks and real estate.  Others typically show their strongest moves further into an economic expansion, after rates have typically risen for a while.  These include basic materials and commodities.


Investor, Educate Thyself

Now, having said all that, I am fortunate enough to have beaten the market every year since I started actively trading in 2005.  Although I've paid my dues and have finally gotten to a point where trading makes sense to me, I still don't like giving out stock recommendations.  Investing and trading are so personalized based on personal knowledge, risk tolerance, risk capital, time horizon, that it would be irresponsible of me to assume to know where your money would be treated best.  The bottom line is that investing is hard.  It takes discipline, dedication, and a little sense of adventure.

The good traders I know have the personality type in which they always seek a challenge. Once something becomes easy, they move on to something else. You may know people like this. It describes me to a tee. There's probably a medication for it, but I'd rather seek challenges and fail than to always wonder "what if". Fortunately, the markets are never easy, so challenge-seekers never get complacent. There is definitely no free ride here, but if you are open to learning complex ideas, and investing some of your TV time to learning more about the markets, you will succeed over time.  I hope you find this site a useful part of that endeavor.


Dan Grill

www.rsinvestor.com

 

 

NOTE:  THE INFORMATION ON THIS SITE IS NOT A SOLICITATION TO BUY OR SELL FINANCIAL SECURITIES.  IT ALSO DOES NOT CONSTITUTE FINANCIAL ADVICE.  THE RESEARCH IS PROVIDED FOR INDIVIDUAL INVESTORS AS AN IDEA GENERATING TOOL.  ALL INVESTMENT DECISIONS MUST BE MADE BETWEEN YOU AND YOUR FINANCIAL ADVISOR.

 

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