What is MSW?

I run this blog as an extension from my equity research business that resides at MarketStockWatch.com. The business originates from my own personal research and also provides an additional stream of income for me and my family. It’s not my sole source of income or the largest income but it does well and I love every second of teaching. Believe it or not, teaching and running a real-time portfolio actually makes me a better investor as I must be completely honest with myself and my rules. I am not shy to admit that I run the site as a profitable business as I don’t trade for a living at this time. I aspire to trade for a living as some point in my life but for now, I trade for capital appreciation. In other words: to build wealth (my net worth).

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I have been (trend) trading for ten years and love every second of the challenge and don’t mind if I don’t ever do it for a living. I am an entrepreneur at heart with interests in business, trading, real estate and education and I understand and prefer multiple streams of income to support my family. Trading for a living would need my undivided attention and I not ready to do that at this time. My main focus and goal in life is to stay out of the “rat race” or the so-called 9-to-5 job that I can’t stand. Time is more valuable to me than money and a job exchanges time for money so I understand that this path limits my freedom and monetary success. Therefore, I invest to increase my net worth, I run a profitable business that I started from nothing, I consult full time within the big builder industry and I own some real estate. I am by no means a real estate investor but I also have some aspirations to run a small business that buys distressed properties and hires a crew to restore the structure and sell it for a profit (that’s the architect in me speaking). I won’t get my hands dirty because that would just be another job; I envision myself as the business brains behind the operation.

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Anyway (I’m getting off on a rant)…

I wanted to share with all the readers of this blog what I do over at MarketStockWatch.com. Yes, this is a plug so stop reading if you are not interested!

My research breaks down into several categories and sections throughout the week.

The MSW Index is the official “Watch List” of MarketStockWatch and serves as the main list to select buying and selling opportunities. Daily screens are the tool that gathers stocks during the week in order to add the best candidates to the MSW Index. From there, all stocks with potential money making opportunities will be purchased into the MSW portfolio. The MSW portfolio will highlight several key factors that all investors should be tracking when buying and/or sell securities.

An example MSW Index is located through this PDF link.

An example Weekly Analysis is located through this PDF link.

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A sample MSW Portfolio Spreadsheet is located through this link. It’s a fully interactive spreadsheet that incorporates my position sizing calculator, sell stops, target prices, R-calculations that help determine the risk-to-reward ratio and other key factors. Download it for free and modify it to use for your own trading portfolio.

The most viewed page from this blog is the position sizing spreadsheet and I would be willing to bet that this will be the second most downloaded spreadsheet heading into the future.

The Daily Screens:
This screen looks for new stocks making strong moves during the trading week with the types of characteristics that are explained on the Buying Strategy Page. A stock can be purchased from the daily screen but the MSW strategy is to look at these stocks further and allow them to prove their strength by watching them form patterns and entry opportunities on the MSW Index. These screens will take place on Monday, Tuesday and Thursday of each week. General market analysis on the major market indexes may be given during daily screens along with major emphasis on the strongest industries and sectors of the day.

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The Weekly Screens:
The weekly screens will highlight the action among the major market indexes, the top performing sectors and/or industry groups from the previous week and the underlying trends in the market. The New High – New Low Ratio will also be highlighted during the weekly screen with key 52-week highs and lows. Changes to the MSW Index and the MSW Portfolio will be highlighted on the weekly screen. Links to the MSW Index and the MSW Portfolio will be located at the bottom of the screen. This screen will take place one time per week and will be uploaded no later than Sunday of each week.

The MSW Index:
This tool will be presented in PDF format and will focus on the strongest stocks from the daily screens; the stocks that make it onto the MSW Index will be analyzed deeper on both a fundamental and technical basis. This Index will look at things such as current price, support, resistance, buy-hold-sell ratings, target entry areas, stop loss areas, target gain and percentage gain on the MSW Index (general idea of trend). The MSW Index will also be the central place for detailed analysis on each stock that makes it to this level. The MSW Index will be offered each week at the same time as the weekly screen.

The MSW Portfolio:
The MSW Portfolio is a list of stocks that have been virtually bought and sold by MSW in 2007. Each stock has been bought or sold using the basic rules stated on the buying strategy page and employ the position sizing and risk techniques explained on this blog. This portfolio will give the community an idea of how I actually buy and sell stocks myself and how I perform against the major market averages and similar equity research services on the web. The MSW Portfolio includes key areas such as ticker, date bought, share price, portfolio size, percentage of portfolio risked, total dollars risked, stop loss in percent, position size, number of shares bought, 1-R risk, actual stop loss in price, target price, risk ratio, date sold, percentage gain/loss and notes on the entire transaction. (please view the upload example images in this post).

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MSW Charts Page:
This page will house annotated stocks that are located on the MSW Index and the MSW Portfolio. This page can and will be updated on a weekly basis with key information located directly on the charts. The charts page will also have additional charts for the major market indexes, commodities, sector performances and other important technical screen shots.

The chrisperruna.com Blog:
The blog will serve as my platform to explain in further detail how I trade. It will cover the rules, the systems and learning experiences during my trading career. The blog will cover topics related to the stock market, success in life and anything I feel is important to talk about. I will highlight “stocks of the day” every week and will perform case studies that will focus on what I did right or wrong after a transaction has been closed on the MSW portfolio. The blog will be filled with colorful charts that will help everyone become a better trader – it’s the ultimate real time teaching and learning tool.

So that’s it. Enjoy the example MSW Index from earlier this year and the latest portfolio spreadsheet!

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