The Motley Fool Discussion Boards

Previous Page

Retirement Discussions / Retirement-Soon or Done

URL:  http://boards.fool.com/sheilaoliver-quotmechanical-strategiesquot-11102240.aspx

Subject:  Re: "Mechanical Strategies"? Date:  7/30/1999  10:37 AM
Author:  GrayWulff Number:  12 of 169

sheilaoliver,

"Mechanical Strategies" are defined procedures for selecting, holding, and selling stocks.

You start with some defined set of companies, like the 30 Dow Jones Industrials or the Value Line companies, and then filter and rank them by a fixed set of rules. You wind up with 5 or 10 companies which you then buy, usually in equal dollar amounts. You hold the portfolio for some predetermined length of time, usually from one month to one year. Then you select new stocks using the same mechanical strategy, sell the old ones, and buy the new ones.

Here's a link to the some of the popular models used on these boards:

http://www.fool.com/Workshop/WorkshopScreenExplanations.htm

And here's a link to the MECHANICAL INVESTING board where these strategies are discussed. Be warned though, the folks over there expect you to spend quite a bit of time reading old posts before you start asking questions. Be sure to read the FAQ's. If you have beginners questions, ask them here; I'll do my best to answer them.
http://boards.fool.com/Messages.asp?id=1030013006413000
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us