We seek to buy from the scared, sell to the greedy. Our goal is to find investment situations that present better than average return potential coupled with lower risk.
We are looking for investments that investors have oversold on the long side, or that have overbought on the short side.
We essentially follow the AIM philosophy (see AIM users board, http://www.investorshub.com/boards/board.asp?board_id=949) of buying on lower prices and selling on higher prices. However, we are somewhat more aggressive than the pure AIM model. We are investors, seeking long term gains from successful businesses, but trading more frequently than traditonal investors. We seek an edge on the market by hedging our positions with short options. If premiums are low, we may purchase options as well, as a substitute for stock ownership, or to insure our portfolio against loss.
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Being contrarian is not just buying stocks that are priced low. This is a common amateurish mistake. Cheap stocks frequently deserve to be cheap and are destined to become even cheaper. This board is for informational purposes only, and nothing should be construed as investment advice, do your own due diligence!
