On this thread, I am going to test the dead bounce theory over the next
several weeks to see how this works against the dow and nasdaq averages.
I have a friend who has bought the stock with the most % decline on the
Nasdaq (must be over $5) at the close of trading of the day of the decline
and has then held it for one day selling the stock the next day at the
close of trading. In the past six months he has done this practice and
has achieved an amazing 50% return on his money!
So, I thought I would try the theory here. The beginning date will be from
Friday 3/14 close and we will start with 10,000. Also, the dow is currently at
6935.46 and the nasdaq is at 1292.97. We will assume that all transactions
are using Datek so it will 9.99 per trade and we will assume we are fully
invested the 10,000 in each stock. |
