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Wednesday, 2 January 2008

My Stock Trading System Crushed the Market in 2007

Posted on 09:33 by Unknown
My simple, elegant, and Taoist stock trading system did great in 2007:

2007 Returns
------------------------
Dow + 6.4%
NASDAQ +9.8%

S&P500 +3.5%

My account +22%

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.

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.
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