Some of those who have followed my writing since I first gained a public platform in mid-2015 might be left with the impression that I don't like capitalism, or the Stock Market. Perhaps no other Canadian of my generation has rallied against questionable trading practices as vigorously as I have. How can someone who takes such an open stance against certain stocks claim to back the trading of others?

The truth is, I am amazed that more people, particularly those with gripes about corporate America, and corporate Canada, don't take a more active interest in capital markets.

Every single American and Canadian who was alive at the time had the opportunity to buy shares in Microsoft Corporation (Nasdaq: MSFT); Amazon.com, Inc. (Nasdaq: AMZN); and Wal-Mart Stores, Inc. (NYSE: WMT), among many other companies that have literally minted billionaires.

Is the stock market really just a big scam?

I have had it explained to me that shares like those issued by Facebook, Inc. (Nasdaq: FB) are tantamount to a "scam." That the entire stock market is a "scam." And so forth. This just isn't so. Every single successful businessperson has mastered the stock market; from Warren Buffett to Bill Gates to Jeff Bezos. The most wonderful part is, almost anyone who can save $500 is allowed to take part.

So many people take this right for granted.

Anyone can learn to tell the difference between a real business, a growing business with shares that have the potential to gain in value, and a scam. It certainly isn't rocket science: top-line revenue, bottom-line profit, margins, and debt are the metrics that, once mastered, along with chart reading, open an entirely new world.

It seems evident that to properly understand the workings of the world that an understanding of the stock market is needed.

Financial techniques for life

Today marks the launch of my new public portfolio Sinclair Big Growth. I will share my trades and my analysis of the market, as well as the performance of the portfolio.

My goal is to share some of the techniques I use, which aren't rocket science, but might not be apparent to the average investor. My portfolio management style is heavily influenced by William J. O'Neil, the founder of Investor's Business Daily.

The portfolio will invest in mid- to large-capitalization companies with strong EPS and revenue growth and low debt. Other factors considered include return on equity, profit margins, institutional sponsorship, technical factors, and general market conditions.

The neutral position of the portfolio is 100 percent cash. Otherwise, 5 percent positions will be initiated when conditions dictate. Losses will be kept to a maximum of 8 percent, with the goal of maintaining an average loss near 5 percent.

Add-on purchases of stocks that move in the portfolio's favor after purchase will be strongly considered. Profits will be taken based on a number of factors with the goal of attaining an average profit of more than 20 percent.

Profitable growth names only

Sinclair Big Growth will launch today and initiate 5 percent positions in Weibo Corporation (Nasdaq: WB); NetEase, Inc. (Nasdaq: NTES); GrubHub Inc. (NYSE: GRUB); Floor & Decor Holdings, Inc. (NYSE: FND); Five Below, Inc. (Nasdaq: FIVE); Mercury Systems, Inc. (Nasdaq: MRCY); Cirrus Logic, Inc. (Nasdaq: CRUS); SINA Corporation (Nasdaq: SINA); and NVDIA Corporation (Nasdaq: NVDA).

The portfolio is being administered by Marketocracy.com, begins with a net asset value per share of $10, and total assets of $1,000,000.

The major averages are currently in an uptrend, and have bounced after heavy selling on news surrounding U.S. President Donald Trump last week. Leading growth stocks, particularly NVDA, SINA, and WB, are displaying uncommonly bullish continuation patterns. Whether this leads to higher prices remains to be seen, but would seem encouraging.
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