Investing 101 tells us to buy low and sell high.
But how do I know which stock is reliable, has high growth potential, and is at its lowest price so I could buy low?
Yes, resources are at our fingertips but it takes hours to research - ploughing through the news, checking various financial sites, analyzing complex charts and data.
What if there is an easy way to know, at a quick glance, what stocks are at an all-time low, and recommend them to you so you could buy them?
Gary Teh, a software developer who successfully built a 17K-strong user base for a data analytics platform spent four years building an investment solution, TrueSight.me, which shortlists majorly discounted stocks of reputable blue chip companies so you could buy low without the hassle of research.
What are blue chip companies? Companies with national reputation for quality, reliability, and the ability to operate profitably in good and bad times. These are companies that will not tank within the year. TrueSight eliminates slow growth companies.
Now, the shortlisted recommendation isn’t random. It is articulately curated from trending global topics that drive major US equity market sell offs.
These global topics aren’t just lifted off from major news sources like CNN, Fox News or the BBC. They are meticulously gathered from reliable and localized news sources following Gary’s three-year globe-trotting effort to seek the truth.
Quality of the news source satisfied, an important feature is baked into the system so that I don’t lose more than 5% of each position I choose.
This risk management feature promotes safe investing practices and to protect my investment. I’ll explain more below.
For now, let’s take a look at how the system works:
Say I have $5,000 to invest. I subscribe to www.truesight.me for its stock recommendations. I pay a yearly subscription of $120 which I think is a fair price given I’m very likely to make more than the subscription price in approximately three months.
I’d immediately have access to a dashboard like this:
This dashboard shows me the percentage of stocks being oversold on a daily basis, with data going as far back as 2018.
Whenever there is a major stock sell off above the average 180-day sell off, I get notified via email of a shake up in the stock market, and a shortlist of companies I should investigate and consider buying.
Some days there would be 18 companies, other days there could be 44 shortlisted companies. This depends on what happens in the news and world market that trigger such frantic sell offs.
The system takes the guesswork out of picking a stock, and whether to buy (if I haven’t already) or hold (if I have bought already).
As for selling, the system automatically sells your stocks for you when you make at least 10% returns.
Why 10% returns? This is based on the widely adopted Empirical Rule which is often used in statistics for forecasting final outcomes.
The Empirical Rule states that 99.7% of data observed following a normal distribution lies within 3 standard deviations of the mean.
Under this rule, 68% of the data falls within one standard deviation, 95% percent within two standard deviations, and 99.7% within three standard deviations from the mean.
Applying the three-sigma limits that follow the Empirical Rule, TrueSight sets the upper and lower control limits based on the inherent volatility of each company and produces a 10% return.
In brief, the 10% return calculation safeguards your portfolio from holding on to a position for too long and risk making a loss when the price drops. Again, this ties in to the baked-in risk control which ensures that you don’t lose more than 5% of your portfolio.
Much of the system is automated to safeguard your investment. TrueSight optimizes your position based on your portfolio and how volatile the stock you picked is so even if I was financially naive and see a large dip which I wanted to buy more of, for example, a blue chip stock like Upwork tanking over $20 in the span of a month, the system would automatically apportion only a fraction of my cash balance to this particular stock. No bets are placed high. Bets are meticulously distributed to ensure my risk per position remains under 5%.
So much of the guesswork is taken out of an investor who doesn’t trade full time for a living, but simply trades with whatever little time he/she has.
I’ve had a chance to use TrueSight and I must admit, it is reassuring to have solid, reliable data at my fingertips so I could make a quick analysis in minutes and invest with confidence in seconds. I’m no savvy investor by any means but I sure feel equipped and educated by an intelligent system to take that investment plunge!
Before you get put off by or suspicious of the minimalistic design of the website, a re-design is in the works. Here’s a sneak peek...
How do I know so much about what seems to be proprietary software? Full disclosure, I work with Gary because I have personally been searching for an investment platform that cuts the complexity of research and amplifies my investment returns. He pays me by buying me ramen and sushi. That’s a pretty fair deal, don’t you think?