On the bottom right of the short term what does the green “Excellent 3.33” or the red “Loser 0.33” rectangle mean?
We rate every stock for its short-term trading characteristics. We have 4 types of ratings: green is “Excellent”, blue is “Good”, yellow is “Marginal” and red is “Loser”. These ratings are a result of a mathematical measurement of how the stock has been performing. We use a ratio of the total dollars won divided by the total dollars lost. An excellent stock is a stock that makes at least 3 times as much as it loses. For example, over a 3 month period of time, if you had 5 wins at an average of $2 each and 2 loses at an average of $1.50 each, the ratio would be (5 x 2) / (2 x 1.5) or 3.33. This would be an excellent trading stock. If on the other hand, you had 2 wins at an average of $2 each and 3 losses at an average of $4 each, this would give a ratio of (2 x 2) / (3 x 4) = 0.33. This is giving you a losing performance. Any ratio under 1 is a loser and a rating between 1 and 2 is marginal. A marginal stock is one that you can make money on, but it is too much work for little profit. A
