My simple, elegant, and Taoist stock trading system did great in 2007:
2007 Returns
------------------------
Dow + 6.4%
I have now made a double-digit return for the last 3 years:
2005 +13%
2006 +14%
2007 +22%
During these last 3 years, I traded my account using my exact system - as described in my book Stock Trading Riches.2006 +14%
2007 +22%
As I mention in my book, I mostly got my picks from Forbes magazine, with a couple choices from MSN and my own picks (i.e. Apple).
But, while the choice of stocks did influence the return, I credit the bulk of my longer term performance over the 3 years to my formula - which got me to buy low and sell high.
In fact, my system would, over time, generate a great return using a portfolio of randomly picked stocks.
Most technical trading systems depend on the market behaving in a certain way - i.e. trending, non-trending, or forming chart patterns.
My system only assumes one thing: In a portfolio of stocks, the stocks will fluctuate over time. That is it. My system turns your stocks into money pumps, and generates cash as each stock cycles up and down.
3 comments:
Impressive.. I hope to make decent returns from Emini trading.. check out my blog at www.makemesomemoney.co.uk
Best regards
Alan
great system!
it appears that the system would do really well with highly volatile stocks as long as their values never crash to 0. for the randomly picked stocks, does the system still beat general market returns such as s&p500?
regards,
xg
Hi,
I'm glad you like the system.
A random portfolio did beat the s&P - but only through simulation. I have only traded my real-life account with stocks I have picked.
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