Charles' Story

I have used different stock market data suppliers for a while now. I use a filter that selects only equities that exhibit a consistent, upward momentum or trend. There is very little point, in my view, in selecting equities that merely maintain their value or, even worse, trend downwards.

I look for a minimum of 4 months to establish consistent upward momentum I also include a ROCE figure of 15% or greater. I monitor their progress, and once they turn level or even down I look to replace them. I accept some volatility but I prefer shares whose prices move within narrow trend lines.

Stockopedia’s StockReports are some of the best I have seen.

Stockopedia’s StockReports are some of the best I have seen. Once I have identified equities that display the momentum I want, I look very carefully at the StockReports to try and understand why that particular share is doing well, and to note any inconsistencies. I particularly like to look at the Graham Formula in Margin of Safety as well as the historic performance of each metric through Stockopedia’s graphs.

I also consider the StockRank for each investment, particularly the Quality and Momentum ranks. Stockopedia’s bubble charts help me quickly analyse each share’s exposure to these factors. I try to ensure that all investments are ranked highly for their Quality and Momentum, anything that falls outside of this is subject to careful analysis.

Since I started using Stockopedia I have achieved an investment return of about 25% for my wife’s SIPP, 20% on my SIPP, and about 18% with our investment club portfolio. I do a fair amount of analysis each week, but Stockopedia helps give me peace of mind.

I have a few rules that have worked really well for me: Aim for at least 20, preferably 30, equities in an initial portfolio to gain diversification of sector. Balance the portfolio between about 15% large cap (elephants), 45% mid-cap (FTSE 250 + UKAIM 50) and 40% Small cap + AIM UK 100 > £50m (cheetahs).

Use Stockopedia’s High Flyers, Super Stocks, Turnaround and Contrarian screens to help you build a good watch list.

Use Stockopedia’s High Flyers, Super Stocks, Turnaround and Contrarian screens to help you build a good watch list. Use Stockopedia’s Quality v. Momentum (QM) score, ideally >85, to check that upward momentum is being maintained. Use Stockopedia’s ‘bubble’ diagram facility to regularly check their exposure to these factors.