Ingenious New Trading Strategy

Discussion in 'Strategy Development' started by mazotrade, Apr 16, 2004.

  1. I have an ingenious new trading strategy. When the market opens, I watch my broker's "hot list" of top price % gainers. I buy the first one that breaks 100%. MACE, ABIX, VCMP -- you get the idea. Feel free to use my brilliant new strategy -- but try to keep it to yourselves. I know you ET'ers can keep a sercret. We don't want the market to incorporate our exploitation of this inefficiency into the vast matrix, blah, blah.

    Let's see, now. VCM: up 250% thus far. Not a bad, not bad at all -- but I think it's heading for the 300% mark, baby...
  2. this is a stock bubble....crap like this happened in 1999....

    You strategy won't last for long. Don't get too giddy. Once the rates start ripping (and the inverted yield curve breaks its back), all of this bond and stock and real estate crap will topple.
  3. Dude -- lighten up, I was joking.
  4. gms


    Reitberg wasn't.
  5. abogdan


    I have a better idea: On the first day of the month let's buy 10 stocks that start with letter "A" , then next day let's go short in 10 stocks starting with letter "B", on the third day however, lets buy 10 stocks that start with letter "C" etc.....
    Works 100%. This is the Holy Grail, this is it! Be careful though with letters, don't confuse the company name with its ticker symbol! Its very important!
  6. Nice system. I'll trade it tomorrow and let you know how it goes.
  7. I was only half joking. I actually shorted ABIX yesterday after it had made a 100% gain, thinking it couldn't possibly go [much] higher. Wrong. Bitter and annoyed with these bubble stocks, this morning I bought VCMP at the 100% mark and exited at 200% to take back the $ that had been so rudely stolen from me the previous day. Perhaps I should have set a trailing stop...

    Now, I like to think of myself as a somewhat sophisticated trader with a decent strategy for making higher probability trades that will, statistically, make $ in the longer term. I'm an adherent of Stan Weinstein's stage strategy and CANSLIM. Boring, perhaps, but effective.

    But why ignore mass hysteria if you can turn a quick buck? Never underestimate the power of large groups of stupid people to alter the landscape. Personally, I'm grateful for the majority of stupid people, as it makes life easier than having to compete in a world full of clever people. And it can be argued that the stupid person is he who does not adapt to the stupid environment in order to survive, regardless of how repulsive it may be to his nature.

    What astounds me is the pace at which these "security" bubble stocks have been climbing the last few weeks. 200% in one day? 300%? I wasn't financially 'aware' during the dot com bubble. Did Internet issues rise that much intra-day? It almost seems like the public's lust for instant gratification has quickened by an order of magnitude.

    Okay, so now I see how to get my money for nothing. What about my chicks for free?
  8. You take the biggest gainer and the biggest loser at 10:00 EST. Take a coin. Heads is go with trend, tails is fade. If you get two heads in a row, then go with trend, if you get two tails in a row you fade the mutha fucka. If after 10 flips no two in a row then you wait until 11:00, take the biggest gainer, biggest loser and start flipping again.

    My cat told me about this.

  9. Just be sure to sell it before the bell.
    #10     Apr 19, 2004