Been lurking on this forum for over 3 years now, but never really bothered to make an account to post or reply threads until now. Let me start off by saying that up to this day, I go into all my trades with humbleness and uncertainty. I just don't know what the outcome of a specific trade will turn out to be. There is much validity to the saying that trading is "controlled gambling." A little background story on how I picked up trading and how I eventually stumbled across this method of making money. Upon the day of graduating high school, my parents gave me 100Gs and told me, " Eric, this is the last batch of cash you will ever receive from us in this lifetime, do whatever you want with this money, start a business, go to college or buy a BMW, whatever floats your boat!" Of course at the age of 18 being the financial guru that I was, i choose to buy a 2005 BMW M3 with that money at the time. Sure, the car brought me lots of tail and attention from the ladies, but it was only a matter of time before I realized the stupidity in buying that car. Around 2008 I sold the car to Carmax, and was written a check for $31,000 (more or less forgot the actual amount~) at the time, 22 years old with no college education and roughly 40gs in assets, being the Asian that I am, I felt like I was financially F***ed. Then again on hind sight, being the Asian that I am, I should have just went to college ! HA~ sigh but I'm glad I didn't ! because if I did, I would have never stumbled across trading! after working petty jobs here and there a couple of my friends brought up the idea of day trading and how they make a couple of hundred dollars (haha) a month doing it. At the time I thought hey, why not? Keep in mind that this is the year 2008 when all the financial turmoil is going on! I sat back and studied what I can gather about the market. Until 1 day sometime in March or 2009 I went home and saw the news about Citigroup on TV and how the stock dropped to the low 1 dollar territory. I immediately called Charles Schwab (Parents were using them for the longest time so I had an account there) and told them to buy me 20,000 shares of C at market. I remembered this like it was yesterday, the price filled at 1.03 and of course as all of you know by now, Citi eventually goes up to a 5 dollar stock(Pure dumb beginners luck, absolutely no analyzing or charting was done to achieve this trade!). But that's not what this thread is about, this thread is about how I made my money day trading just one single stock for 2 years. The symbol "C" As of now I am deeply infatuated with C stock haha, as it has returned me a generous percentage on my portfolio. So I started looking into this stock more and more until I stumbled across a method of day trading JUST this stock alone "C" would yield me robust returns. Keep in mind I know nothing about charting or technicals so I'm deeply skeptical about this method at first until I tried it out on a sim acct. with OPX. But in the end, the method proves to be legit. I was able to return a generous percentage of my assets with probably one of the dumbest and yet simple strategies ever. No charting or technicals required! although I can imagine you can probably enhance the strategy with charting and technicals. ========The Method======== Buy C @ MKT close of each day and then Sell at @ MKT Open the next day. Simultaneously Short C MKT @ open and recover @ MKT at the close. to better explain my method I have attached an excel worksheet of my executions on Paper. In reality the results would be slightly different due to commissions and fill price at the OPEN/CLOSE but generally speaking, I wouldn't have too much trouble getting the open price and close price to match the official records since I use mkt orders and C had massive volume! I can't really sit here and tell you why it makes money the way i trade. I use to get countless questions asking me why i trade the way i trade from Schwab representatives over the phone when i call in for my box positions. I do not use charts or technicals to trade. I guess in a way this is trend trading ? needless to say this method no longer works, my guess is that the reverse split has something to do with it since the method stopped working right after the split. Since then I have developed a skill to spot ongoing trends even in the intraday sessions. I'm not trying to make it look I am a stock guru nor that I " have it all figured out" the fact is, there are just too many uncertainty in this market. All i know is I was able to make solid money this way, and at the same time develop a skill to spot ongoing trends. Trading is a passion now for me and I take great joy and pride when i make money in it. I trade contracts these days as for the returns are much more attractive. I hope this thread helps or inspires ongoing day traders who are struggling to make money. I understand the returns aren't much, but it was enough to give me a comfortable living! feel free to ask me any questions I will do my best to answer them !
good luck to your strategy. I will not follow it since I know it will burst the account, the strategy only works in bull market.
I think Eric is their English name, usually given to them by a teacher (I think). Not going to college is fine; however, I hope you are well-read and have good public speaking skills (which includes talking to girls). I've met a few guys without degrees, and they get very insecure for some reason. But avoiding $100,000+ in debt is fine. gl
Maybe the strategy worked because the scalpers, usually long because of limited shorting availability had to dump their shares at the end of every day, and overnight the shares would gain, because that's what they do in a bullmarket. So you were lucky, now find another clever strategy (or better more of them).
Very interesting. You should apply this to another bank stock and maybe a tech stock as well for a comparison. It's now a global trading environment. Always felt that asian and european traders move US markets after hours.
Norwegian If my parents gave me 100k out of high school in this day and age I would have bought a rental property and trade with what was left over. If you can trade you can live off a 25k futures account. You won't get rich but you can make 3-5k a month almost by accident. Then if your rental is spinning off a few hundred a month that helps to if what you are trading is in limbo. Are you still living at home? Don't let people scare you out of becoming a landlord. Since my parents kicked the bucket it was something I was forced into but now it has become something i'm crazy about. I have rentals in DE NJ and OBX and I literally spend maybe 6 hours a month dealing with bs. Oh God thinking back to high school depresses me, well that and reading the deep thoughts thread. Where did it all go wrong? of yeah 2003 when I got married. Now I spend most of my day thinking about if I should kill myself or my wife. Holy f&*% as I'm typing the CL is getting raped Good luck its time to make hay!
That's what I thought at first, but run the strategy yourself in 2008. the biggest Bear market, and you will get an even bigger return.