1. Each four weeks, for instance (though the regular interval could vary, for example every week or every quarter), put a new buy order in at the close of trading on Monday (or the first day of trading that week, if the exchanges are closed for a Monday holiday). Invest in a single value + momentum stock not already held that statistically stands a better than even chance of going up and meets the guidelines of a good value and price performance stock screen.

2. Sell stocks after held five weeks, if they are then up 20% or more, or when they no longer qualify under the buy criteria, replacing them with new stocks (not in the portfolio) that meet the buy criteria. If during the hold period a stock goes down 10% or more, yet still meets the guidelines per #1, buy more shares. Then the new sell price target will be 20% above one's average cost basis. To avoid wash sale rule violations, use a tax-deferred account for these trades, or do not purchase the same stock within 5 weeks of previously selling it when there had been a loss before.

3. Invest a fixed amount each four weeks (or week, quarter, etc.). If one's available funds and income allow for setting aside, say, $5000 every four weeks to invest in stocks, that could be the approximate dollar amount used for each of the strategy purchases.

4. For most of our value plus momentum investing, I use the Motley Fool CAPS screener and these selection guidelines from among its variables:

   a. CAPS ratings 4 or 5;
   b. All-Star outperform picks 25 or above;
   c. 52-week price change 100% or above;
   d. EPS Growth Rate in the last 3 years 37.5% or above;
   e. Revenue Growth Rate in the last 3 years 37.5% or above.

   (If sometimes every stock meeting these standards is already held, has been sold within the past 5 weeks, or otherwise was redeemed in a way or an account that contraindicates a new purchase at this time, then no additional investment occurs yet for the current portfolio rebalancing.)

5. Assuming this approach is as profitable for you as it has been for us, just repeat indefinitely.

After this portion of the overall holdings reaches more than 50% of the total portfolio, new stock investment amounts can be raised. For instance, if the portfolio were kept at 5 stocks and the value of reserves were now roughly equal to the total equity market value, each new equity purchase would be for about 10% of the total (of stocks plus reserves).

If so, there are a number of investment services, usually including one's brokerage company, that can give a list of fine choices among stocks that have financial strength as well as higher than average dividends. Here are a few of the latter which currently look promising:

Best of luck with your own well balanced and profitable investing portfolios.