The Big Dipper system is based on stocks that are picked are on the Basic Strategy but have made a temporary drop in price. Stocks on the Big Dipper have targeted lower or dipped prices that one would buy only if and when it hit this lower targeted Big Dipper price. Our studies have shown that, those that drop by a certain amount have a good tendency to bounce back up. Some don't, but by far, there are more winners than losers. Many people like this system as they can't afford to get into every stock in the Basic Strategy. This way, the BD gives a lesser number of plays, while at the same time, the profits per stock tend to be higher. Also, for those members that buy the picks on the Basic Strategy, this the Big Dipper provides a way to cost average the purchase price when a stock takes that temporary dip. This in turn makes a profit point for the overall average cost lower thus easier to achieve. We like options in these, if they are available and the premium is not too high, but we do not recommend getting into options unless you understand how they work. We like the leverage that options provide (See Sample 1 below).
Symbol (1) | Big Dipper *Target Buy Price (2) | Fri. 10/12 Close (3) | Don't Buy Past (4) | Date 1st Hit BD Price (5) | Split Date (6) | *Target Sell Price (7) | Regular or BD Sell Date (8) | Split Ratio (9) |
XYZ | $55.50 | 62.46 | 10/21 | 10/05 | 10/25 | 66.50 | 10/29 | 2-1 |
ABC | $77.75 | 93.10 | 10/14 |
| 10/18 |
| 10/22 | 2-1 |
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*No Options (10) | Exact or Lower (11) | Close Below BD (12) |
| Hit Today (13) | Date Change (14) |
| Date Change (14) |
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New (15) |
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| # = Split Price (16) |
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(1) Symbol - This first column displays the stock symbol.
(2) BD Target Buy Price - The price to look for if you want to follow this strategy (based on computer research). If it ever gets down to that price (within a dollar) it's a buy. You have to keep watching, or put an order to buy it with your broker at the Dipper Price.
(3) Fri. Close - This column shows the last closing price for each stock.
(4) Don't Buy Past - This is the last date you should buy a Big Dipper pick. We don't want it to get too close to the sell date and not have enough time for the stock price to increase.
(5) Date 1st Hit Dip Price - This column shows the date that a given stock first hit the Dipper buy price. It may go lower after that, or reach it again later, but that is the first time it gets there.
(6) Split Date - This next column gives the Split Date, which gives you a general idea of how much time you have before the split date.
(7) Target Sell Price - Once a stock becomes a buy, this is the targeted price to sell the stock.
(8) Or Big Dip Sell Date - If a Big Dipper never hits the targeted price, then the stock should be sold on this date at open of market..
(9) Split Ratio - This enables you to adjust the sell price after the stock splits.
(10) No Option - If the stock symbol is shaded in yellow with an asterisk then that stock has no options associated with it.
(11) Exact or Lower - This simply means that to buy the stock at the Big Dipper price or lower not above the Big Dipper price.
(12) Close Below Dipper Price - The price in this column will be shaded in green if the stock closes on or below the Big Dipper price..
(13) 1st Time Hit Today - If the stock closes on or below the Big Dipper , then the first date it hit the Big Dipper price will be shown in column 5 and shaded in yellow.
(14)Sometimes companies change the split dates after the fact. When that happens the date will be shaded in pink.
(15) New - When a new stock becomes a BD candidate it will appear at the bottom of column 1 and is shaded in gray.
(16) # Split Price - The "#" next to the price in column 3 (the latest closing price) is based on the stock after it splits.