Cherry Picking Stocks and Stock Scanning

Modern examples of cherry picking are all over the street. Investors follow large institutions and investors like Warren Buffett, who is known for quality trades. Cherry picking is simply following the trades of a profitable trader or institution that has a long history of trading success. For the cherry picker, trading structure is based around the proven techniques and strategies of other investors. Cherry picking provides easy profits in both bear and bull markets. Professional traders are quick to follow the advice of other professional traders.

Following the Big Names

When firms like Berkshire Hathaway take positions, investors follow suit and invest in the same company with minimal research of their own. Rather than using their own investment techniques and strategies, they rely on the track records of other investors. When word hits that Warren Buffett made a sizable investment in a company, various firms are quick to follow and rapidly push up prices. Day traders and swing traders also make large amounts of money by following the advice of TV personalities like Jim Cramer by entering a position based on his take, as other investors will likely follow suit.

Save Time on Researching

Cherry picking can be used to make quality trades without using technical analysis or studying the business. Cherry picking saves time for the swing trader who would rather rely on the history of others than use their own algorithms to define worthy investments. A cherry picking strategy is usually profitable for swing traders in both the short and long terms; short-term volume pushes the stock prices up, while history’s best investors rarely make terrible long-term trades.

Cherry picking can also be used much like momentum trading, or buying stocks that have already done very well. A quick look at a mutual fund prospectus will show the best performing stocks out of an already good list of investments. The cherry picker thinks that the stock is likely to do even better because the stock is doing the best out of stocks that were already heavily researched. Cherry picking is like picking a lawyer from Harvard, knowing they’re the best in the business without checking out the credentials of the particular individual.

Shop at the Bottom

In much the same way, cherry pickers also find stocks that have bottomed. Mutual funds only take quality trades that have been well researched and studied. If a stock has tanked since the fund made an investment, sentiment would be that the company is even more of a buy at its deflated price than it was when the fund invested. Swing traders and day traders find it easy to profit when the prices are already deflated and ready for a big run.

Checklist for Starting a Home-Based Business


1. Get Mad / Get Excited – If you are unsatisfied with life, get mad about where you are and get excited about where you are going. People are more likely to listen because of your enthusiasm than your knowledge.

2.Invest in Your Education / Training – it is the only investment that pays you FOREVER! The marketplace pays for value. How do you increase your value? By improving your skills. Also, don’t be afraid to ask for help. You should always work harder on yourself than anything else, including your career!

3.Need To Go To Work – fill your pipeline with prospects. Expose at least 5 people per day on average. People will not know you are in business unless you tell them.

4.Never Give Up, Never Give In, Never Ever Quit – this cannot be an option. You must be 100% committed because this changes your posture. Only if you stick it out and don’t quit, can you succeed. You can only grow through trials and tribulations.

5.Tell Your Story – why you got involved, what really drew your interest, where you see things going, etc. Facts Tell, Stories Sell.

“If you help enough people get what they want, you can have everything you want.” – Zig Ziglar


This is how you are going to interest others in finding out about your product and/or opportunity.

Key Point: The more people you expose your business to the quicker it will build and the quicker you will find leaders that want to do the same. Exposure really is EVERYTHING! It is really important for you to understand that people are not going to just walk up to you and ask if you are in business.

It is also important for you to understand that there are many ways to expose your business and you can surely find a way or ways that work for you.

Open your virtual doors. Now that you are completely prepared, you are ready to open your business up to the public.

Which Is A Better Real Estate Investing Strategy, Wholesaling Or Rehabbing?

This topic has been one of heated debate for quite some time now. You have the “Die Hard” Wholesalers, your Rehabbers, and Landlords that all feel that their strategy is the best.

Probably the best way to describe where everything fits in, it’s best to think of a triangle. If you look at Real Estate like a triangle you’ll see that on one side we have Rehabs, on another side we have Rental Property and on the last side of the triangle we have wholesaling.

I consider wholesaling to be the bottom side of the triangle, the foundation. Wholesaling is the foundation that quickly injects large chunks of capital into your home buying business. This is the capital that you’ll be using to grow your business and purchase long term wealth vehicles like Rental Properties. I personally wouldn’t recommend trying to do any of the other real estate investing strategies until you’ve had a few wholesale deals under your belt.

Wholesaling, or “Flipping” properties is by far the easiest way for a new real estate investor to go from zero to $20,000 in 30 – 45 days. It won’t take you long to get to the point where you’re making $10,000 to $20,000 checks each and every month only working a few hours a week. That’s probably one of the greatest benefits that you’ll find when wholesaling Real Estate.

Who wants to worry about fixing junk properties..or unclogging toilets? This is a strategy that you can put on auto pilot if you put the appropriate systems in place. If done properly, you should only need to show up to Close The Deal & then to pick up your check at the title company. Remember that time is your most valuable asset!

Once you’ve created your investor list (which we will discuss) it won’t be hard for you to move these deals in a short amount of time, normally within 10 to 15 days. Your buyers will be paying with All Cash and financing is not an issue.

This is much easier than selling to an “End Buyer”. In a slower Real Estate Market, it may literally take two to three months for you to find a qualified buyer who wants to buy the property. Remember that the keyword here is “QUALIFIED BUYER”. When you’re dealing with other investors you know that they either have cash or hard money, and financing isn’t a big issue. When you’re dealing with “Joe Q. Public” you’re going to get interested buyers with various financing issues and you’re the one that has to worry about getting the deal closed. Once you find a buyer, you’ve got to get their loan approved, then you’ve got to get the loan taken care of, get the appraisal and all the other things that come with a regular retail buyer, and so it may take anywhere between three months to eight months to close a deal on a rehab, going from purchase – rehab – resale.

That brings me to another reason why I prefer wholesaling real estate over rehabbing. When you buy, fix and resell real estate, you’re committed to the property. Once you close on that baby it’s yours…The Good And The Bad! If some unforeseen problem arises (It always does), you’re going to be the one that carries the expense. If you’re rehabbing a property, you’ve got to start by hiring a contractor or handyman. You’ve got to get him to do all the repairs to the property, market the property, go through the process with the end buyer. All of this may take a long time, and you are the one carrying the costs. Every day that this property remains in your possession, money is pouring out of your wallet.

In a wholesale deal, all that you are really doing is getting control of the property. You would simply take the same property that you would normally buy and rehab, and get it under contract. Then, you’re taking that contract, marketing it and selling it to other investors that want to take on the project. There are investors out there that prefer doing rehabs. These are investors who have the cash to pay and who don’t mind waiting six months to do a rehab. There are also investors that want to do a deal, but are horrible at talking to sellers and would not be able to secure the pricing that you can. These Rehabbers have no problem paying you an “assignment fee” (the amount that you pocket when you sell your contract) because they understand that it is a cost of doing business for them.

The Rehabber will generally net more than a wholesaler, but look back at all of the risk and time associated with doing a rehab. The average, depending upon your location is between $25,000.00 to $40,000.00. and at times even more. But most wholesale deals are going to net you anywhere between $10,000.00 and $20,000.00. Usually about half of what the average Rehabber makes per deal. However, unlike the rehabber, as a wholesaler, you have more control of the amount of money you earn. The best part of wholesaling is that your pay is directly proportionate to your ability to put deals together and not how much time or physical labor you have in a deal. As you get better at negotiating, you’ll be getting properties under contract for less and less, allowing you to sell the contract for more and more.

I would personally rather do four wholesales and spend less time than to wait six to eight months for a single rehab to cash out. Even if you’re in a position to wait that long, is it really worth the risk? That’s the question that you need to ask your self when deciding which real estate investment strategy you want to take on. Exactly how much risk are you willing to accept?