I became a very successful trader after I developed my trading system, which is based on constant value investing.
I have made a double digit annual return for years now.
My complete system, along with information on possible variations, effects of commissions, and beneficial tax strategies, are detailed in my book, Stock Trading Riches, which is available on Amazon.com.
You can read more information about my book (including testimonials) here.
Remember that this is my system for implementing constant value investing. Here, I explain how my system answers the Questions for Building a Trading System. Future posts will give ideas about even more variations.
I only invest in stocks, ETF's, or closed-end funds.
I don't want you to just follow my system - I want you to start thinking critically, and develop your own system, that you feel comfortable with.
My system is like zen or tao. The market fluctuates and I am at peace with whatever it does. The system has no optimized parameters - it simply uses the formula for each stock to see how many shares it should own NOW. It makes no assumptions about the future or remembers the past.
I am "one with the market" in the present moment, and buy low - sell high.
Here is an example with Amazon.com yearly prices. Just imagine having a whole portfolio, where you buy some stocks at the top, some in the middle, and some at the bottom, all feeding and pumping cash, as the markets cycle over years!
Wednesday, 18 October 2006
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