Alpha Stock Trading aims to provide useful information on the Stock Market worldwide. This site is dedicated to Stock Traders and Equity Investors worldwide, though our primary focus is the US market.
We have nearly 20 years of stock trading experience in the global equity markets including S&P500, Nasdaq100, Dow Jones Index, Nifty and Bank Nifty in India, UK FTSE 100, France CAC 40, Germany DAX, Shanghai Composite Index, and Hang Seng Index of Hong Kong.
Having seen equity markets worldwide, we know how the capital flows between developed markets and emerging markets, and how it impacts stock prices. Movement of large scale capital flows is the single largest factor for stock market price rise and fall; not individual performance of stocks. One has to remain careful about global capital flows.
We decided to create this informative Stock Market website for stock traders and investors. We are able to see capital inflows and outflows, and also stock movement trends and our members/subscribers benefit from our market reports/posts/newsletters.
We trade in businesses in a variety of industries, including Biotech/Life Sciences, Healthcare, Energy, Natural Resources, Financial Services including Banks and Insurance, Metals & Minerals, Media, Foods, Telecom, Software, Retail, and Real Estate. We are constantly working on a wide range of trading/investment opportunities, and we remain open to new possibilities and welcome inquiries by email: info @ alphastocktrading.com
Stock Trading Strategy
Our strategy is to identify a few stocks or ETFs that we can hold with high conviction that earnings will increase over next 3-4 years, despite any near term blips, and we have a comfort level with company’s management. After buy some stock initially, we will wait patiently for market corrections and buy more stock at 6-12 month lows. We do about 5-10 trades per stock per year.
Our trading strategy in Index ETFs is to buy all major corrections of 8% or more, and sell them on bounce back towards 3-6-12 month highs.
Even the best quality stocks can run into big trouble…it happens all the time. For example, Goldman Sachs (GS) fell 25% in 2 weeks in April 2010 due to legal issues. ICICI Bank (IBN) fell from $13 to $11 in one week.
Missed earnings, industrial accidents, law suits, unexpected CXO departures…there are N number of risks that we face when we invest in company stocks. But when we buy Index ETFs, its like buying the entire market, which removes company specific risks, which is one of the surest ways to limit deep cuts on the investment.
It’s true – a top performing stock can easily beat the S&P 500 returns, but can you really load your entire capital in one stock? No! So you need at 4-5 winners, and that is difficult, and accidents can happen with winners too, and the market reaction will be even more harsh. Most fund managers will be very happy to get 4-5 winners every year.
In the S&P500 ETF (SPY) and Nasdaq ETF (QQQ), we have the entire market – the real winner! Capital may flow from stock A to B, sector X to Y, but it tends to stay with the within the market most of the time, which gives rock-solid support for the S&P500 and Nasdaq100 indices. SPY and QQQ have been our top two equity investments since year 2000, and they are most popular ETFs in the world, and for a good reason, because they are very reliable and suitable for the long haul.
If you have to buy/trade only one stock, please select the S&P500 ETF (SPY). Just buy at 3,6,12 month lows and hold for 3,6,12 months, you won’t go wrong. You will be surprised how consistently the S&P500 Index gives you profits than any other stock. And you can load as much capital as you want. So if you are in for the long haul (and you should be), buy a Mack truck, not a Ferrari.
Following is a sample set of trades from our model portfolio.
To benefit from our stock market experience, subscribe to our
Alpha Investment Newsletter.