Easy money

Discussion in 'Trading' started by FishSauce, Jul 12, 2003.

  1. Has anyone tried this strategy?

    A stock declines by 5% or more ... MOC buy, sell next day close (MOC).

    From what I heard this is easy money.
  2. Quah


    Even easier money to just short MOC the day before it drops 5%.
  3. nitro


    Who is it that you heard this from?

  4. Okay ... <--- rolling my eyes

  5. mean reversion folks

  6. nitro


    Where are those folks?

  7. Yeah - because a stock that is down over 5% NEVER goes down more the next day. And, I have never heard of one gapping down, either.

    But, you need to make sure you take advantage of longs also - a stock rises 5% or more, sell MOC.

    Welcome to the club!!!

    :D :p :eek:
  8. Secret elitist traders (note: NOT elite, but elitIST)
    j/k pretty much of people i know who call themselves by that term.

  9. Sharp


    I would rather sell MOC after the 5% drop and buy back the next day.
  10. nitro



    Well, one way to see is to try it with a 100 shares over 20 stocks that get creamed and see what happens!

    Otherwise, this seems like an easy task even for the free version of Wealth-Lab to test.

    #10     Jul 12, 2003