Introduction

StockRing is powered by advanced stock portfolio monitoring software. The accuracy of its generated Buy-Sell-Hold ratings can be attributed in part to the efficiency of our risk evaluation algorithm and partly to the repeated and automated evaluation of the general market conditions in relation to client portfolio holdings.

The heart of our software is BalanceRank    a system for ranking the balance between buyers (green part) and sellers (gray part) of stocks and mutual funds developed by our founders while working in Salomon Brothers, a large Wall Street firm. And while we are always working to improve every aspect of StockRing on a daily basis, BalanceRank continues to provide the basis for all of our stock rating tools.

BalanceRank Explained

To understand the idea behind BalanceRank approach, investors need to realize that the only reason for stocks to go up or down in price is the pure relationship between Supply and Demand. Obviously, the balance between Buyers and Sellers is influenced by various financial news, general market conditions and other hard to predict events. However, after reading all the news about some stock, if we were presented with a situation when for a few months 90% of all orders for this stock were “Buy” orders and the rest 10% were "Sell" orders, we can safely predict that the price of this stock was going up during that time. The interesting fact is that even if the balance between "Buy" and "Sell" orders started to shift and over time became 80% - 20%, or 70% - 30%, or even 60% - 40% (Buyers vs. Sellers) the price of the stock would still continue to go up, but probably not as fast. It is clear, that the price of the stock will stop rising when the balance between Buyers and Sellers will become 50%-50%. At this point, there is no clear indication where the Stock price would go next and it becomes dangerous to hold this stock.

StockRing software daily harvests a huge amount of financial data about each stock in the client portfolios and feeds this information to BalanceRank system. In turn, it analyses the impact of this data on the current and future balance between Supply and Demand for this stock and generates the percentage relationship of Buyers vs. Sellers.

If BalanceRank detects over 50% of buyers for a particular security that our client currently owns, it assigns a "Hold" rating to this stock. However, if the percentage of Buyers is less then 50% then this stock considered being risky and a "Sell" rating is generated. The same approach is used to generate "Buy" and "Wait" ratings for stocks and mutual funds that StockRing customers are looking to buy in the future. If BalanceRank detects that a majority of people are buying a particular stock it would generate a "Buy" rating otherwise a "Wait" rating is assigned.

Integrity

StockRing complex, automated early warning system prevents our clients from making common investing mistakes that they made in the past. And though we do only estimate the balance between Buyers and Sellers, the margin of error in our calculations is very insignificant and still produces phenomenal investing results for our clients. A StockRing Buy-Sell-Hold rating system is an easy, honest and objective way to find bad stocks in the client’s portfolios and quickly unload them to cut losses early or to preserve already made profits. It is also an extremely efficient way to discover high-quality stocks to buy in the right time and at the good price.