Discussion on the "One-Sixteenth" Stock Selection Method

Everyone has a different investment style, and stock selection methods vary. Among the many stock-picking techniques, there is one called the "One-Sixteenth" method, which I’d like to recommend. What exactly is the "One-Sixteenth" stock selection method? When I first saw the name, I was curious too, so I studied it and will now share my thoughts on this method, hoping it will be helpful for your investments.

So, what is the "One-Sixteenth" stock selection method? Essentially, investors keep only sixteen stocks in their watchlist. These sixteen stocks can be recommended by well-known bloggers, suggested by friends, or identified through personal market observation.

As an investor, one key principle when buying stocks is to "keep the strong and eliminate the weak." First, note the top ten best-performing stocks in your watchlist, then remove the six lowest-ranked stocks. After that, you should find six new stocks to add.

On the second day, continue observing the top eight performers, record their names, and remove the eight lowest-ranked stocks. Then, add two new stocks, and so on, maintaining a final watchlist of ten stocks. After observing your watchlist for three consecutive days, if a stock appears in the top five performers for all three days, you can consider buying it.

Of course, if no stock meets the above conditions, the investor should refrain from buying and continue using the "sixteen-stock" method to refine the watchlist to ten stocks until a qualifying stock appears.

The above is the "One-Sixteenth" stock selection method. I believe that by applying it, you’ll see good results. However, this method only works if it suits your style—if not, you should adjust accordingly. Only by combining the method with your personal investment approach can you gradually develop your own stock-picking techniques.