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Q&A: Today's Market

I'm having difficulty seeing the logic, in such a volatile market, in selling one "A" stock and replacing it with another "A" stock. Are some “A” stocks better than others?

Thanks for the question. This sometimes happens in my Quantum Growth newsletter. Quantum is a trading service so the action can be fast and furious. Also, our method often runs counter to people’s emotions. I often say that we have to keep our emotions in check when we do our buying and sell.

I know it irks people to sometimes take a loss, but remember that the stock doesn’t know you own it and it doesn’t know what your entry point is. If you want to hold on to an A-rated stock, that’s fine by me. But in my issue, I feel that the best way to make up for any loss is with our new buy.

In the history of Quantum, even though the Buy List has climbed substantially, most of the stock positions have been sold for slight losses. The reason why we’re been able to do that and come out so well is that we sell our losses early so they don’t so much damage, and we let our winners run and run.

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Week of 07.21.08
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Stock Symbol Grade  
BP PLC (ADS)BPBBUY
Chevron Corp.CVXBBUY
Exxon Mobil CoXOMCHOLD
Hess Corp.HESABUY
PetroChina Co.PTRBBUY
Sunoco Inc.SUNDSELL
Tesoro Corp.TSOFSELL
Stock Symbol Grade  
Brinker InternEATCHOLD
CBRL Group IncCBRLDSELL
Cheesecake FacCAKECHOLD
DineEquity IncDINFSELL
P.F. Chang's CPFCBCHOLD
Ruby Tuesday IRTFSELL
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