MEMBER QUESTION: If the risk control is already built into DreamTai, then a portfolio approach really isn't necessary as a tool to minimize risk,
DreamTai has already factored that in right?
It depends on the investment approach you take. DreamTai does its job of risk control and market timing.
Now, it depends on you on how to build up your portfolio.
You can take the sector approach, like some portfolio managers do. Every week, look at Investor Business Daily and see which sectors are the hottest sector. Then find the hottest stock (stocks with larger power ranking in these hot sectors) and invest in these stocks.
Link for the HOTTEST Sectors:
http://bigcharts.marketwatch.com/industry/bigcharts-com/
Another approach is to look at the hottest trending stocks irrespective of their sector. If you notice that Google is speeding up and has a high power ranking, just buy it using DreamTai criterion.
Link for the hot stocks:
http://bigcharts.marketwatch.com/reports/
MEMBER QUESTION: Stock or EFTs (DIA, SPY,QQQQ)
What is the purpose of Power Ranking Tab in the DreamTai software ?
The stock power ranking shows the strength of the stock move. The higher the number, the more bullish the stock.
Suppose, there were two stocks that went up by two dollars.
For the first stock, the volume was one million, but for the second stock, the volume was thirty million. Obviously, there was a greater power for the second stock.
The Stock Power ranking measures the power. If you are considering to buy many stocks, you can input them in DreamTai and buy the stocks with the highest power ranking.
Conversely, if you are shorting, you should select the most negative power ranking stock.
Please refer the following page:
http://www.dreamtai.com/mainpages/questions.htm
