How Stock Investors Use the AI Stock Forecast

Stock investors using the AI Stock Forecasting system only need to spend about 30 minutes each month rebalancing the holdings in their stock portfolios. The average time that a stock is held in our AI Stock Portfolio is about 9 months. So, on average, if you are holding 20 stocks in your portfolio, you'll be buying and selling about 2 stocks each month.

Buying

Using the information on the "Industry and Stock Forecasts" page of the AI Stock Forecast, investors should purchase stocks in the top 10 industries that have "buy" ratings. To see a list of stocks in a given industry group, click on an industry group. As a rule, it is wise to diversify your investments. We recommend holding between 10 and 20 stocks at any one time. Preferably, your stock investments should be distributed over the top 5 to 10 industries. A diversified portfolio will be less volatile.

Selling

Once a stock gets a sell rating, it is time to sell it. The proceeds from the sale should be used to purchase a stock with a "buy" rating.

Brokerage Accounts

If you don't have one already, we recommend opening up an account at a good on-line discount broker such as TD Ameritrade, Scottrade or E*Trade. Trading with a discount broker can save a lot of money over the long run. For example, for around $10.00, you can make a fairly large stock trade on-line. This is substantially less than a similar trade with a full service broker and will help keep the costs of trading to a minimum.