Last year I taught my girlfriend how to buy and sell stocks. Since then he has developed a strategy that has made her a lot of money. I feel kind of stupid telling you about it, because it's pretty crude and simple. There is no basis for the view and only minimal technical analysis involved. All of the standard ways of picking stocks does not really apply here. The only reason I would even consider it because I see her by 10% to 20% in a month rather routinely. Let me outline its strategy so that everyone can play with it and hopefully make some money on your own.
It first started to watch list stocks. In it, she puts all the big companies are likely to have volatility, but very safe. list can include Apple, Microsoft, and / or Visa. These are the companies that will not go out of business and have a great up and down price swings of 10% or more per week or month. She is also going to put on her list of stocks to watch that are currently very hot. For example, agriculture and oil are hot lately, so it takes a leader in these industries, and adds them to her watch list.
Now that she has to watch list setup, it uses the Yahoo historical quotes and charts to find the price for each share, where they faced resistance and the price for each share, where is the support.
For example, as of this writing on August 9, 2008 in just the last two months, Apple (AAPL) fell three times at 165. Twice he hit 180 before reversing. It sits today at 169.55, after deducting from the bottom of your latest 153 and go to the 180th
As you can see, AAPL has been bouncing between 165 and 180 She bought in at 165 and exits in the 180 Every time is nearly 10% gain. Now here is a twist. She did not buy the shares for 10% of profits, she bought call options on the way up and put option on the way down. It uses only the stock price to tell her when to and from the options. With an option you can charge your back and make two to ten times more profit.
if the trade goes wrong, it is a strange strategy for trading stocks, which seems to work in this market. I normally cut my losses, but she actually bought more on the way down. This gives it a lower average price per contract. Now just waiting for stocks to bounce her. Since it has a lower average cost of inventories does not bounce all the way back to 180 (as in our example), for her to make a profit.
most of the time not come that bounced and she has very little loss. The reason for the bounce comes in choosing stocks. These are all large companies that face some bad news or difficult times that drag them down. However, investment funds will always step in and buy them if the price gets low enough.
most of the time not come that bounced and she has very little loss. The reason for the bounce comes in choosing stocks. These are all large companies that face some bad news or difficult times that drag them down. However, investment funds will always step in and buy them if the price gets low enough.
...Do not miss the opportunity.
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