Easy Money in the Stock Market with StockScouter

During 2000 - 2002 investors were loosing their shirts. Many people were loosing their whole retirement accounts. The pain of loosing this much money is more than most people can take. You may be one of those people but I hope not.

So I am going to show you an easy strategy that a beginner can make money in the stock market year after year to the tune of 48%. The best part is that this strategy is free, you won't need any fancy computer systems or expensive stock market timing software.

One question that beginners ask is how can I find a stock that will make me money when there are over 7500 to choose from? Our answer to this is StockScouter from MSN Money. StockScouter is not perfect but it will give you the information needed to make money year after year without knowing much.

StockScouter is a Quantitative research tool that does the hard work of finding out if you should buy a stock. StockScouter will rate each stock from 1 to 10 (10 is the best). Each day the stocks get recalculated with a new score.

Here is how they do that:

Fundamental - It checks the company's past growth earnings, estimated future growth and it's ability to beat the analysis projections. It must be growing fast enough to be powerful in the future.
Ownership - It checks to see if the company owns its own stock. To have a high score, a stock must be owned by high ranking executives or board members.
Valuation - It finds out if the stocks price is high or low based on its level of sales, earnings and growth.
Technical - The stock should have a positive technical signs of growth to get a high score.

Generally StockScouter will do well in a 6 month or under time frame. Reason being is that after 6 months there are too many factors that can change the stocks price. So now lets get into how we are going to make some money in the stock market. We are going to take the top 10 picks in the StockScouter index. These are stocks that are very strong currently and in powerful sectors that are very hot right now. This list changes every Tuesday.

1. We are going to start with 10,000 and put 1,000 in each stock. You are going to set your stoploss levels at 20% for each stock to protect your money. This way if your stock looses money you will loose no more than 2% of your total money. This strategy uses best money management rules.
   
2. We are going to rebalance our portfolio of 10 stocks on Tuesday. Visit MSN Money on Tuesday and get your list of stocks to buy. Now buy them!
3. Now we are going to give our stocks 1 week before we come back to the StockScouter top 10 list. Now compare the list to your list of stocks you own. If any stocks are no longer on the list, Sell it and take any loss or gain you might have. The rule is to hold your stock as long as it's on this list.
   

Our research indicates that should receive close to a 48% return on your money per year. Keep it simple, why try and complicate things. I would say give it 3 months and see how you like this strategy. Maybe use a play money account to track the results.

So how did your 10,000 do over a 5 year period?

Starting Money: $10,000.00
Ending Money: $504,216.62 !

Not bad for easy to follow free research, Can you Digs it?