3 Ways To Invest With Wootrader
Posted: July 8, 2015, 11:50 p.m. by atanass
Most every investor is different—each has different goals, different knowledge, different amount of spare time available for investing, and different core beliefs. That is why we designed Wootrader—to cater to those various investment types.
Wootrader offers 3 different methods that can help you find stocks to buy or sell/short. Depending on how much time you can spend on managing your portfolio and your comfort-level at making investment decisions, the methods are listed from the easiest to use (and probably the safest too, but with the smallest potential to 'score' big gains) to the most involved ones (you definitely need to have some comfort investing as they carry the highest risk but possibly the highest rewards, too).
1. Investing with the General Woo
The General Woo is the main ranking in Wootrader - it's the first screen you will see on the home page after logging in and is available for all subscription levels.
The General Woo ranking is an aggregate ranking calculated by averaging the investment timeframe (week, month etc), number of stocks in the portfolio (5/10/25), and the number of performance metrics available for use (one day, five days average or the entire performance history average).
When you are unsure about your investment preferences, the General Woo is the easiest way to take advantage of the powerful engine behind Wootrader. Since the General Woo is a very broad strategy, the average returns are not the highest possible, yet they are more predictable (safer):
The above is the average performance of the General Woo rankings, compared to the S&P500. This is an average over the history and it does not guarantee that every single day you will get this performance. There are days with higher performance, and days with lower performance, yet on average the top 5 stocks of the General Woo ranking, if held for a month, grew in value about 2% more than the S&P500 index.
If you are looking for stocks to sell/short, you can simply reverse the sorting order and look at the lowest ranked stocks in the General Woo.
2. Using the Woo Wizard
The Woo Wizard is available to the Rainmaker membership level and above. The Woo Wizard can be used when you have a better idea of your investment goals - are you looking for stocks to buy or sell(short), how many stocks are you going to track in your portfolio, how often are you going to revise your investments etc.
The Woo Wizard will guide you through a couple of questions about your goals to find the best screeners for your specific needs.
Let's look at the results from selecting stocks that can grow in value, with a 25 stocks portfolio, keeping the stocks for a month and using the short-term average of the performance (more actual for the current markets) :
As seen from the above performance, being more specific in your goals can yield better performance results.
3. Using Specific Screeners and Woos
Using the rankings of specific Woos (groups of screeners) and individual Screeners is available to the Rainmaker membership level and above.
When you feel comfortable enough with stock markets, indicators and the way they can be influenced by the current conditions, you can invest directly with a specific Woo or Screener.
As of this post, we are in the midst of the Greek crisis and the China stock markets correction - rough times to say the least. It is often assumed that in such fearful markets, a safe bet is to invest in high dividend-yield stocks instead of growth stocks, and if we go to the Best Performance reports, we can effectively see that the Dividend Yield screener is one of the top performers, along with several technical indicators :
If we go the Dividend Yield screener, the stocks are ranked by their last quarter dividends distribution as a percentage of the stock price:
It is to be noted that the top ranked stocks are in infrastructure, oil/gas and some REITS. The performance of this screener is impressive - 20% up for the last month, with a very timid S&P500 for the same period. Such performance comes of course at the expense of a higher risk - you will invest solely on the performance of Dividend Yield stocks where the General Woo combines all of the screeners' performance to offset the risks.
In conclusion - it is best to invest depending on your own goals, preferences and the amount of time you can dedicate to nurturing your portfolio of stocks.And if you feel unsure about your investing skills, always start with a virtual portfolio instead of putting at risk your savings.