THIS PAGE IS FOR STOCK INVESTORS
FalconRidge Consulting LLC is dedicated to supporting Professional Wellsite Consultants with practical tools and resources. The Automatic Investment Manager program provides a simple way to help you invest in your favorite stocks, making investment management straightforward and accessible. Alongside free downloadable forms and the comprehensive Professional Wellsite Consultant Handbook, this program aligns with our commitment to empowering consultants both professionally and financially. Simplify your investment process while focusing on your core expertise with confidence and ease.
Many years ago I developed a simple algorithm, a tool to assist in stock trading. My intention was not to become a "day trader", or "swing trader", but merely a PROFITABLE TRADER. It took some time to develop the math that fit my desire to profit from trading stocks in the markets, and I have done moderately well using the platform. I call my system "Automatic Investment Manager", or "AIM".
I came up with a set of rules that worked for ME. Here are the rules:
Three Rules for using the Investment Manager
General Statement:
Four stocks should be picked for the initial investment. Initial value of that stock will be as follows (Stocks picked should be marginable if possible):
Stock #1: Stock price should be $3.50-$5 per share
Stock #2: Stock price should be $5 to $6 per share
Stock #3: Stock price should be $6 to $8 per share
Stock #4: Stock price should be $8 to $14 per share
Note: If your stock picks do not meet that criteria, just proceed with the ones you selected.
You also may elect to trade "penny" stocks. Sometimes a penny stock can be purchased in great volume, resulting in significant gains (or losses) being realized on small swings.
Core Selection Rules (pertains to stocks under consideration to trade):
First Rule: The stock must have shown significant volatility for at least 12 previous months.
Second Rule: The stock must NOT be thinly traded. There must be active trading each day.
Third Rule: The stock must show high VOLUME of shares traded daily.
Method of Trade
The ultimate goal should be to hold $70,000 in cash equity in the trading account. Of that initial amount, roughly $20,000 will be held in an "anchor" stock, and will not be traded on the swing. The remaining $50,000 will be swing traded as follows:
Initial buy will include four stocks (as noted above). The value of the buy will be a total of one half of the invested cash, leaving the other half as a backup. Each day, the stock value will populate automatically, and enter the values into the A.I.M. portfolio daily record. The program will then compute whether to buy, sell or hold. If buy or sell, it will compute the dollar amount of the trade to execute, and it will be determined at that time, which stock or stocks will be traded in the requisite dollar amount.
The program allows for scenario plotting, which enables you to predict stock prices and place relevant orders in advance. Essentially, you enter stock value that you expect to see, and watch how the algorithm reacts, whether to Buy, Sell, or Hold. Based on that, you can go to your broker and place Buy or Sell orders for the expected value, GTC and wait for the fill. The strategy is known as "Paper Trading". This eliminates the need to watch the stock performance minute-by-minute, and you can relax. Potentially, $500 and $1,000 can be made with each and every trade. When any particular stock ceases to follow any of the three rules, then it MUST be disposed of.
ABOUT THE PROGRAM
My program is in Excel format, and should be used with Microsoft 365. Without MS 365, you can still use it, but you will need to get stock quotes from another source. The program is available for download for $20. The program is dependent upon the USER's knowledge of the markets and input.
All stock orders/trades are conducted by the USER. The User MUST have a stock trading account with a broker in order to benefit from the use of this program.
DISCLAIMER
This software, including all worksheets, formulas, calculations, outputs, and related materials (collectively, the "Program"), is provided for informational and educational purposes only. The Program does not constitute, and shall not be construed as, financial advice, investment advice, trading advice, legal advice, or a recommendation to buy, sell, or hold any security or financial instrument.
There are no guarantees of profits, gains, or favorable outcomes. All investing and trading involves risk, including the potential loss of some or all invested capital. Past performance, whether actual or simulated, is not indicative of future results.
All decisions regarding securities, trades, margin usage, position sizing, and timing are made solely by the user, who assumes full responsibility for all such decisions. The developer does not provide personalized recommendations, does not assess suitability, and does not consider the user's financial circumstances, objectives, or risk tolerance.
By using the Program, the user expressly acknowledges and agrees to assume all risks associated with its use and irrevocably releases and holds harmless the developer, creator, and any affiliated parties from any and all claims, liabilities, losses, damages, costs, or expenses (including but not limited to financial lossses, indirect or consequential damages, or lost profits) arising out of or related to the use of the Program, reliance on its outputs, data entered by the user, or any trading or investment activity undertaken.
Use of this Program constitutes acceptance of this Disclaimer in full.