Definitions and Strategies

The results of these rating are very helpful to the trader to quickly evaluate any stock position. Zabacus Stock Calculator seems very well geared for the swing trader and can be helpful for quick decisions required by the day trader. Most stock seem to take a week to six weeks to go from a very low score to a high score. That being said market news or conditions can influence the time line or trend direction at any time.

Zabacus Stock Calculator ~ Inside the box...

How are the calculations performed you ask. Our analysis have programmed into the Zabacus Stock Calculator formulas that use standard technical analysis of charting information. Zabacus also uses other important market data which is entered like sector trends, professional analysis or recommendations, and other fundamental information. All of this information is then computed through our proprietary sequences of elementary and complex algorithmic formulas using various weighted averages. The results are then scored according to the decreasing or increasing strength of your stock with the interactions of the market. Since time is money we then deliver a very short and concise report about your stock request with our evaluation.

Stock Purchasing Strategies

There are many investment strategies on how to buy stock. If Zabacus Stock Calculator gives a stock a BUY rating then the stock is usually very near an over sold point or already is in an upward trend. However; like any stock the possibility of continuing a trend further downward is possible. If this happen then a second or even a third purchase may be required as the score reflects and would be recommended. In which case the best method is to double up on you investment.

~ i.e. 1st purchase 100 shares, then on the 2nd purchase buy 200 shares, third time buy 400, etc.

We rarely ever have a 4th buy situation because the company will mostly likely have filled a Chapter 11 by then.

On the reverse side the Sell would be handled by selling off say 50% when a change from Hold to a Sell Area occures or sell 100% on small quantities. Then if upward trend continues sell the rest upon a higher score. Zabacus cannot predict the bottom or top of any market. That being said Zabacus works like the events leading up to the "The Perfect Storm" the more conditions that come together the stronger the BUY or SELL signals become. Therefore; if your stock receives a 1.2 Buy score you darn betcha it won't stay there long and will soon start on a upward trend. The opposite being true you have a 9.6 or so it is time to go to market. (side note anything above a 9.0 well you know what they say about pigs and hogs.)

All this works equally well for shorting stocks just think in reverse.