2012 Positions and Picks

This Page Last Updated on 12/31/12

DISCLAIMER: DO NOT INVEST IN ANY STOCKS OR INDEXES BELOW UNLESS YOU WANT TO LOSE YOUR MONEY. This information is for educational and entertainment purposes only. Consult your financial advisor before making any investment decision.

© 2012 The Keystone Speculator™. All Rights Reserved.

Keystone’s Positions and Picks 2012:

The Keystone Speculator™ separates trading into two groups; first, the Core Position Trading and second, the Short-Term SpeculativeTrading. The Core Position Trading is currently 65% of the overall portfolio and the Short-Term Trading is 35%. The larger core position trading part of the portfolio is traded solely by Keybot the Quant™, Keystone’s proprietary trading algorithm. The status of the core position is constantly displayed in the left margin on this site. Keybot does not call market tops and bottoms but rather moves thru the year with the smoothest trading line possible, alternating between bull and bear positions (either long or short the market) that maximizes profit while keeping risk at a minimum. For any trader looking for a gauge on the bull-bear status of the broad markets in real-time, reference Keybot the Quant™ in the left margin. For anyone that wants lower risk, and perhaps does not have a lot of time to trade, or simply prefers to not trade all that often, and is more concerned with a return over a longer period rather than participating in wildly volatile up and down near term speculative market moves, Keybot is an attractive tool to follow.

The Short-Term Speculative Trading involves individual tickers, indexes and ETF’s and takes advantage of positive and negative divergences, stock chart patterns, trend lines, support and resistance and other technical analysis, seasonality and proprietary indicators, as presented on this site daily. These trades are not held long term and are typically shorter term highly speculative and extremely dangerous trades including day trading. These trades provide higher rewards, but, at much higher risk. Also keep in mind that the short-term trades may serve as a hedge against the Keybot core position.

As a rule, do not view the markets as a long or short, black and white, proposition only. Diversification is key spreading out stock plays among many different sectors as well as holding both long and short positions at the same time. If you believe the markets are headed south, do not view that as having trades that are 100% on the short side with no longs. Instead, view that as having about 70% of the positions short but maintaining 30% or so long. Everyone has to decide their own risk tolerances. Likewise, if you are very bullish the markets, do not place an all or nothing 100% on the long side, instead, hold about 70% of the positions long but maintain about 20 or 30% of the positions short. For example, if you are bullish overall, perhaps maintain five or six positions long and a couple short. Conversely, if you are bearish the markets, perhaps maintain about five or six short positions with a couple of long plays. Staying diversified with both long and short positions typically insures something working for you on any given day and helps lower risk.

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