The Yalicoo way to
beat the market
January 14, 2008
The beginning of 2008 is a great time to analyze
Yalicoo traders’ returns in 2007. In order for the analysis to be meaningful,
one has to compare these results with the returns of the relevant index - the
NASDAQ. It is important to notice that Yalicoo is not a 3 winner’s competition
but a community of investors; we will therefore consider the returns of the top
five leaders at the end of each game.
Before launching the site, we knew that Yalicoo would serve as a unique tool for
investors and traders who wish to beat the market. However, we did not realize
just how good a tool it would actually be... The following results may astonish
you so be prepared.
It can’t be true! But it is…
The chart below compares the average results of Yalicoo's five leaders at the
end of every day in the
daily competitions of each month with the average daily
return of the NASDAQ (shown as the red bar).
We double checked all the numbers to make sure
that there aren't any typing or calculation errors of any sort. So rest assured,
the numbers in the chart are completely accurate.
Two main important conclusions can be drawn immediately from reviewing the
chart. First, and most importantly, Yalicoo competitors are, on average, are
impressively beating the index on a daily basis. The average daily return of the
NASDAQ during the last 5 months has been 0.03% while the Yalicoo leaders’
average daily return was 1.93%. Simply phrased, this means that Yalicoo leaders
beat the index, on average, by almost 2% every day. Translate this yield to a 5
month cumulative return and one can see that the portfolios of Yalicoo leaders’
yield returns of few tens of percentages above the market's total return. These
incredible results are also reflected in the weekly, monthly and
quarterly
competitions. That really is amazing!
Yalicoo players just keep getting better…
By looking at the chart above, you can also learn one more important thing.
Yalicoo players are constantly improving their average returns month after
month. The average daily return was about 1% during August and September; it
increased to 1.8% in October, 2.8% in November and continued to increase to 3.1%
in December.
If the market would have had an increasing trend of returns during this period,
it would be reasonable to relate this increment in the Yalicoo competitions to
the market rise. But, as demonstrated in the chart above, the market did not
have gains during this period; quite the contrary, the market dropped to
negative returns towards the end of 2007. And so, the inevitable conclusion is
that Yalicoo competitors who participated in more competitions, gained more
experience and eventually improved their stock trading skills. Moreover, more
players used Yalicoo’s platform to follow the leaders and increase their own
returns.
The bottom line
The Yalicoo community is getting bigger every month. This means more traders
bringing more skillful and original stock trading ideas and strategies, which
will obviously lead to an improvement in the returns.
It is reasonable to believe that eventually there will be reached a plateau in
the improved performance of Yalicoo’s traders over the market. It is possible
that the difference between the results of Yalicoo players’ performance and the
market return will shrink. Still, Yalicoo players’ returns are substantially
higher compared to the market returns (mainly in the US market); thus, either
the returns realized by Yalicoo players’ will substantially decrease or the
market will experience a significant surge leading to the decline in the
variance between Yalicoo’s players and the market returns. According to the
chart above, the returns of Yalicoo’s players increase while the market may
experience an unfortunate recession, a scenario which will keep the returns of
Yalicoo’s leaders high above those of the market.
Bottom line is that Yalicoo offers you a
unique tool that can assist you in
beating the market month after month. Just think how your real money portfolio
would look, if you had followed Yalicoo leaders during the past 5 months. You
would have probably gained many percentages to your portfolio; which would have
meant substantial profits that could have been translated to thousands of extra
dollars to your investment account!
If you already follow the leaders in Yalicoo, you probably know what we mean. If
you haven't done this by now, don't dwell on the profits you would have gained
in the past, but start learning from our leaders now in order to assure these
profits in the future.
In conclusion, following the leaders is not just a phrase; it actually works and
it is a very easy task; all you have to do is choose the competitions you like –
daily, weekly, monthly or quarterly – and join in. Then study the leaders’
portfolios, available in live real-time, and try to implement investment ideas
and purchase of stocks from these portfolios into your own real money portfolio
in order to increase your returns.
Start increasing your returns today!
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