Sharing
Since SI is all about sharing ideas and experiences:
Since February I have been conducting a little experiment, one of about a million experiments in the last 30 years of trading, most of which have not worked.
I took a $30,000 account, with margin privileges, and simply put it on the sidelines, out of daily trading.
When the market dropped significantly I then used the account and bought many of the stocks discussed by the Katt man--ABB B CTB GT OSK --I bought all that I could at the bottom of the bad day, in 200 to 500 share blocks because often what appears to be the bottom ain't the real bottom. But I would "spend" as close to the $100,000 allowed by margin as I could.
The very next day all but one or two would rise significantly and I would sell for a gain of roughly $3,000 to $5,000.
This happens 3 to 4 times a month, or at least it has since Feb.
So the return on this has been from, roughly, $10,000 to $15,000 a month on a $30,000 account.
Can one do better using this very mechanical system?
Yes.
If I had sold 2 days later instead of the next day I usually would have made significantly more.
Eagle |
