Unfortunately some problems, like not having enough money to do it right, can't be solved. A lot of stocks make new highs, but only a small minority go on to make huge gains. If I could figure out which stocks are going to be the big winners (in advance) I'd be the richest man in the world.alp wrote:And what if you cannot buy all the stocks making all time new highs at the same time?ecritt wrote:Yes, we've tried everything from 10 day highs to 3 year highs to all time highs, in 5 day increments. Performance is nearly the same from 2 year highs to all time highs. It starts to deteriorate when you move to the left of 1.5 year highs. The deterioration is due to opportunity cost at first. When you buy a stock at a 1 year high the buying power has to come from somewhere…in this case it would be at the expense of the other stocks in the portfolio (stocks at all time highs). As you go faster and faster (6 month highs, 3 month highs, etc.) you get mired in the natural noise of the market, turnover skyrockets, transaction costs pile up, and profits come way down.
You could try using fundamental screens, but I don't see evidence of that working for anyone else. In fact, I think such is likely to diminish performance...