High Growth Stock Investor
P.O. Box 760
Sumner, WA, 98390
level: Beginner to advanced.
Price: $599 a year, $60 more with commodities; or $59 a month +$5 for commodities; Trial offer is $49 for 60 days.
Recommended System: PC with Windows 2000/XP/Vista, minimum RAM 512 MB (1 GHz recommended), 2 GHz Processor or faster, 5 GB free disk space or more. Internet Explorer 5 or later. Internet access with 56k modem or with faster DSL/cable. 16-bit color display.
Self-directed investors, traders and professionals seeking analytical software that can quickly rank the best or worst performing securities by price, industry and sector relative strength performance using a combination of technical and fundamental screening tools will be impressed with High Growth Stock Investor’s (HGSI) capabilities.
This end-of-day software package costing $595 a year (including the daily data downloads) provides users with many different views of the stock market depending on the user’s selection criteria. Not only does the software provide user defined and pre-defined multiple screening tools for stocks, but also for ETFs, closed-end funds, mutual funds, and commodities.
Getting started is easy. The software is first downloaded on the user’s PC from the Internet, and then the latest price database from Quotes Plus is also downloaded to obtain current information. Each night in about 10 minutes (using a DSL connection), the user can access and obtain the closing prices. Since the software and updates reside on the user’s PC, it is easy to do analysis anywhere at any time. Of course, daily updates are needed to keep the database current.
DEPTH OF FEATURES:
The four main components of the program are the Designer, Warehouse, Ranking and Charting tools. Since the stock market universe is so large, the Designer contains many different customized slices of the market for analysis purposes. For example, if only NYSE stocks or only the Nasdaq 100 stocks are of interest, then the user can select that grouping to work with, as they already listed as a separate group. Likewise, ETFs, closed end funds, mutual funds, S&P component indexes, Dow Jones Indexes and other grouping are provided in the Designer with a click of the mouse.
The Ranking tool is used to rank the price performance of the stocks selected in the Designer. The user determines the time period to rank the securities, and the program arrays the stocks in order from best to worst performing using either a percentile rank (1-99) or the actual percentage change. For example, you could rank the price performance of international ETFs over the past 26 weeks, then 13 weeks, and then four weeks to see which ones are the strongest and those getting stronger.
Once the ranking is completed, the user can then go to the Warehouse to further analyze the securities from multiple technical and fundamental perspectives, combined or individually. Imbedded in all the program components are more than 400 filters allowing the user to screen the securities for any number of pre-selected conditions, as well as customizable user-determined criteria. For example, stocks with percentage rank of 90+ for three criteria such as earnings growth, individual stock price performance rank and group price performance can easily be brought up on the screen with a mouse click using that filter or any variation desired. Applying filters hones down the stock picks to a much smaller number where further analysis can be performed.
Once the top stocks are selected, then the Charting tool can be used to determine the proper buy point or sell short point. This advanced charting capability, composed of more than 50 indicators, allows the user to place four indicators on the screen at once in addition to price and volume data daily, weekly or monthly. There are many preset charting screens showing the user different views of the security, as well as the market internals (ADX, percent of stocks above various moving averages, McClellan Oscillator).
One unique indicator is the Hindenburg Omen. The indicator signals pending market corrections by monitoring the number of securities that form new 52-week highs relative to the number that form new 52-week lows. If both numbers traded on the NYSE are greater than 2.2% of the total number of issues that day, the criteria is met. The chart shows the indicator flagging two recent significant market corrections.
One feature the software does not provide is the ability to back-test different search strategies using various criteria. This feature would have been helpful to traders who need the confidence of backtesting to feel comfortable putting their money at risk, although we all realize that past results do not guarantee future returns. There is a way for users to select securities based on any criteria selected and track the performance going forward against appropriate benchmarks. This real-time approach, using watchlists, will show how good the user is in picking the appropriate criteria.
HGSI offers numerous ways to become proficient with the software including an online user’s guide, a topic guide accessed by a mouse click on the Toolbar, a learning center and videos. In addition, a weekly review of the markets and stock review process using the software is provided most weekends in a video format. Users also can purchase DVDs with more detailed instruction for $125, or subscribe to a comprehensive monthly newsletter for $200 a year. HGSI also offers two threeday workshops a year in California for $1100 covering all aspects of the market, program and new features and strategies.
One of the most useful educational resources is the HGSI User forum on Yahoo where users post questions and answers, commentaries and useful insight on program features and strategies, and current market conditions. This is an active bulletin board that can greatly enhance a user’s ability to learn the ins-and-outs of the software in a friendly environment.
HGSI is a fully featured, customizable product that offers users the ability to scan the markets for securities that meet their specific criteria. Many preprogrammed criteria, searches and security groupings provide a myriad of choices. Self-directed market players who learn the program will find that they will be able to cherry pick the market for the best-suited
candidates for potential price performance, and hopefully provide more consistent profits.
Leslie N. Masonson is the author of All About Market Timing and Day Trading on the Edge. Reach him at firstname.lastname@example.org.