It is always a good idea to regularly review our stock investment strategies (including our profile parameters) with our financial advisor, to understand how effective they have been.

At the same time, it is also important to run with a profile for a while before deciding to tinker with it. Typically, an annual review may be sufficient.

Reviewing Our Strategy

A good review helps answer the following questions and provides tips and ideas to fine-tune our stock investment process. We can ask both stock-specific and general questions:

• Did the stock price's performance match the health analysis scores?
• Does the stock price's current performance match its historical performance (how useful was our simulation)?
• Did the 'buy' and 'peak' threshold parameters suggested by the simulation prove to be correct for the stock?
• Were the 'buy threshold' and 'peak drop threshold' values we used for a stock the best that we could have used for that stock?
• How many (and which) stocks that we thought were good ended up plateauing?
• Which stocks seem to be immune to (or vulnerable to) market corrections? This gives us an indication of which companies have inherent value and which ones are simply riding the market trends.

It is always important to keep in mind that past performance does not imply similar future performance.

Summary

As the stock market is never static (the stock price patterns change from year to year and from stock to stock), our strategy also needs to be tuned accordingly. Periodically reviewing our strategy and fine-tuning it is a good way to make sure it stays true to its objective: maximize our gains and minimize our losses.