We constantly strive to identify ripe market conditions where we anticipate an investment vehicle which will unlock its value before the general public takes note of it. In order to do that, we adapted a simple — yet powerful way using a scientific method & investment strategy we call SSA (seven step analysis for short).
Here’s how it works:
- Sector & Industry (S & I) Analysis – Many investors look for investment vehicles in strong sectors and industries to invest in. While this may be a good idea, we are doing our analysis a bit different. We have several underlying steps of doing S & I analysis. One way is by searching for S & I’s that are doing a possible comeback. So it may not necessarily be a strong S & I “yet”, but it could in the very near future.
- Scanning – As we continue to do our search, the deeper we dig, the more trading vehicles get discarded. So once we like a certain S & I, we move on to the next phase. We start scanning that market for strong candidates that show a very specific human behavioral pattern in that specific S & I. After we find a basket of possible contestants, they go into our watch list and we get to work.
- Valuation Analysis – Next, we have our basket of trading vehicles, so now we start evaluating one by one. Value investing is the strategy of selecting an investment vehicle that trades for less than its intrinsic value. In other words, a company that is worth more than its reflected current price. In short, we look for something that trades at let’s say $10 a share, but is worth $15 or more. We actively seek companies that we believe are undervalued by the market. Value investors believe the market overreacts to good and bad news, resulting in price movements that do not correspond with the company’s long-term fundamentals. The result is an opportunity to profit by buying when the price is deflated. Value investing is not about buying anything less than $2 per share. Value investing is about finding companies that the market has not correctly priced.
- Paper Analysis – This has nothing to do with anything physical. We simply start looking at companies management’s and drill down hard! We look at their profit margins, balance sheets, operations statements, cash flow statements, product lines, their competitive landscape compared to their competitors, catalysts, share structures and more. This process is very time consuming and takes special knowledge. If we like what we see in a company, then it moves up the rank to our next step.
- Pattern Analysis – Once we get a number of trading vehicles into stage 5, things are getting a little more interesting. Unlike Elliott Wave and Fibonacci theories, we deploy a very different approach to help us forecast market conditions, sectors and specifically the trading vehicles that managed to make it this far into stage five.
- Proprietary Indicators – One of the most frequent pieces of advice new traders hear from experienced traders is: “Do what the big boys do.” Of course, that begs the question: “How do we know what the big boys are doing?” That’s where our proprietary indicators come in. With a quick visual look, we can see what the big boys are doing, but more importantly — what they’re going to do next. These indicators have stood the test of time, going back decades. To get all that, TeppersList has been utilizing artificial intelligence to perform very advanced forms of analysis that we, as humans, couldn’t do. Artificial intelligence is able to analyze massive quantities of data on virtually any market in mere seconds, so that we, as investors, get the information we need to make the right decision — at the right time! This is what’s stacking the odds in favor of our subscribers.
- Risk Factor – One of the most important components is risk. We look for opportunities with low risk and high upside potential within evenhanded holding periods of weeks and sometimes months. Depending on what type of investor you are, this could vary. There are a few key factors we look at that tell us the risk involved.
Every time we moved up one rank, we eliminated more and more contestants. We may have started off with a basket of 20 to 80 (sometimes even more), but as we move up, that number goes down drastically. Once something made it to the seventh step, then we issue an alert based on all seven stages. This includes a brief analysis with possible entries & exits points including a special rating we give.
As someone can imagine, there is quite a bit of work that goes into the selection process. The methods we use at TeppersList are considerably different than traditional investors use. This includes how we start our process from start to finish. We believe that just swing trading alone, based purely on technical chart patterns, has too much essential risk.