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Posted: 12/1/2002 10:19:53 AM EDT
Would anyone care to weigh in on using a 'system' to make money in stocks? Has anyone had luck with 'rolling stocks'? That's were you use the cyclical nature of a stock to time your buying and selling. I was working on a trend that looked exploitable, and repeatable, but it became too cumbersome to track by hand. I need to be able to find an archive of biggest %losers for any given week. Bigcharts didn't have it,nor did smartmoney.com.
Link Posted: 12/1/2002 11:46:25 AM EDT
[Last Edit: 12/1/2002 12:34:53 PM EDT by raven]
Well, naturally, if there was a winning trading system, the owners/inventors of it would do everything they could to keep it secret. If everyone did the same thing, the power of the system would be diminished. Conversely, you can assume that any system you see for sale in trading/investment magazines or sites couldn't really work, otherwise they wouldn't be for sale. Read this article by Richard Russell. He's the best market observer I know of [url]http://www.dowtheoryletters.com/DTLOL.nsf/htmlmedia/body_rich_man__poor_man.html[/url] I subscribe to his newsletter and the two fundamental things that he has seen work to make money in the markets is compounding interest, and being on the right side of the stock market's primary trend. He's a real big-picture thinker, but when he sees short term opportunities and reversals, he'll point those out as well. [url]www.dowtheoryletters.com[/url] I cant recommend Russell highly enough.
Link Posted: 12/1/2002 12:09:19 PM EDT
Invest in a monkey and a dart board set pasted with ticker tape, then blindfold the little bastard and let him have at it. You will also do well to stay away from investing in tulip bulbs more commonly known today as dot coms. I read the book "A Random Walk Down Wallstreet" over 20 years ago, required reading in one of my investment classes, and it has stuck in my mind ever since. I still have that copy lying around someplace.
Link Posted: 12/1/2002 12:15:26 PM EDT
buy low sell high
Link Posted: 12/1/2002 12:23:57 PM EDT
[Last Edit: 12/1/2002 12:25:48 PM EDT by Redmanfms]
I have a system for you: Don't invest with the dream that you are going to get rich quick. Buy some reasonably stable stocks when they seem low and sit on 'em for a few years. Don't forget to diversify. That means you should buy "guaranteed" returns as well, like bonds, and CDs. I had a friend that used to laugh at me for putting most of my money in secured futures, until he lost every penny he had saved in the collapse of the tech and internet stocks. Now I'm 21 and will have a sizeable amount of money (about $250,000 as it stands right now) by the time I retire from the Navy at 42 (that's my plan anyway). He's 23 and has to start all over again. The stock market isn't exactly playing the lottery, it's more like black jack. You have a limited amount of space you can "play" and the rest is just pure pot luck. The guys who write "system" books usually didn't make it big on the market, they made it big selling books to people selling some cockamamie system. Just keep that in mind.
Link Posted: 12/1/2002 1:04:33 PM EDT
So then you think the old guy, Graham and that Buffett dude are on to something? What about hedging stocks? The cyclical nature just seems like it would [i]have[/i] to be able to be analyzed. All you would need too do is find a repeatable pattern right? That's all. [:D]
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