Selecting Stocks Based on Feel

what's up everybody you may have heard me mentioned in a separate video or on the livestream that sometimes my decisions are based on feel that it's it's really difficult difficult to explain like why I bought or didn't buy a certain stock in this video I hope to show you what I mean by feel alright so let's say I'm looking I'm looking at a stock right let's just pick a random one Penn National Gaming okay take our PE and and let's say I'm looking at that company and I'm not quite sure whether or not I should buy the stock right what I'll do is when I'm on sure I'm gonna refer to my trusty uno deck okay my uno deck and I maintain two piles at all times for times like this where I might be a little bit unsure what I should do so what I'll do is in the first pile when I'm drawing I get a draw from the first pile first so I show you the cards here this is just numbers all right it's just numbers in this first pile okay two four six eight in this case there's odd numbers in a new no deck but the odds are for the suits okay I'd like to keep my life easy keep it simple I'm just working with even numbers so I just draw a card keep it real easy and would just say six okay so I'm gonna be buying six thousand shares of pen right hold on there's a second deck you got a draw from okay now okay so this is the question now six thousand shares a pen but now there's some additional variables we're gonna take into account I'm gonna draw from this second uno deck here and I'm just gonna show you all the different cards that are that are in this deck so you can see the different possible outcomes of this decision process so the first is this you know what this means if I'm drawing this card it means it's just tell me you don't buy it move on move on to the next one right simple stuff then there's a couple of these type of cars like plus two plus four it's just saying just buy an extra 2,000 or next to 4,000 shares that's all that's saying real simple stuff right then we get to this one right the reverse you know this guy this is the reverse card right this is this is effectively a reminder for myself of like if you're really not that sure whether or not you're buying the stock man if you're not sure and and there's a little bit a little bit of ambiguity ambiguity there like don't force it I mean it's saying like don't worse reverse so what I do is if I'm looking at pen PE inin I reverse the tickers so then I start looking at in ep in this case and I say alright that's the ticker I'm gonna buy instead now that's if it's not a ticker right and any P's not a ticker I start chopping off letters until I arrive at a ticker so chop off the end then we're at any P and that weren't what is the next error Energy Partners or something like that that's the ticker abuyin see see how simple it is make keep it simple stupid next next card okay everyone loves to get this car right boom wild card I love to get this card too it's it really simplifies my life quite a bit and what the wild card is telling me it's saying when in doubt shake it about so that's what I do I shake my magic 8-ball about and what I'm what I'm saying now is I've already drawn the car say should I buy six thousand shares of Penn National Gaming writin let's just then the eight ball tells me what to do my reply is no right but yeah I just if I don't get the answer I want I just say I'm I'm still still a little bit in doubt so I shake it about should I buy Penn outlook not so good just you just keep on going my sources say no and you just keep on going until you get the answer you want should I buy should I buy a pen yes definitely perfect okay okay so then in that case we buy six thousand shares the pen see now that is all right there's one more card this one you know this card I start with this card is telling me right this one's exciting what this card is telling me is that if you're unsure of the fate go back to the blank slate it's telling me go back to the drawing board forget the ticker you were working with go start from scratch and don't start screening for a ticker you don't need to go looking around performing research it's such a waste of time what I do is I refer to my trusting game abut anagrams you know this Kamban anagram it's just again forget the screening and stuff I want to get the blank slate card back to the drawing board I'm just I just start drawing just start drawing letters you know what I mean we start drawing this is gonna determine which if I'm not gonna do pen which company I'm actually gonna do is then whichever letters you land on you just put them in the order it's very important you got to put them in the order that you pick them out and otherwise you stop barn you stop ticker that wasn't right for you and you put them together and then that's it that's that's the company that you're buying you know what I mean so like that's it see how simple that is keep it simple stupid so that's the blank slate card that's those are all my my you know cards and now when you see me mention in the stream that hey this decision was was was based on feel now you gonna know what I mean

Channel: Roaring Kitty

Views: 673,805

Keywords: deep value investing, value investor, the big short, warren buffett, day trading, davey day trader, investing, stock charts, charting, google sheets, stocks, spreadsheets, insider buying, value investing, technical analysis, wallstreetbets, google finance, stock valuation, stock market, live streams, dave portnoy, streaming, investment process, michael burry

Id: PQBubLv49fk

Length: 4min 49sec (289 seconds)

Published: Tue Jul 14 2020