Stock TradingThe stock trading system I'm currently using is a system of buying low and selling higher in smaller quantities. I have a list of stocks that I feel are good companies and I purchase those that are well below 52 week highs and when they are having a down day. I have set no exact profit percentage for selling and will not hesitate to take a profit. I expect to be making more trades in this system. I have also used a system that tries to buy what would be considered high quality, dividend paying stocks at depressed prices and selling them at a predetermined profit percentage. I picked this system up from a book titled The Brainwashing of the American Investor This stock trading system isn’t just a stock buying system; it is more of an overall investment system that includes income generation as well. I’m currently using closed end income funds for the income generation side of my investments and have been pleased and even surprised by the income each month. One thing that I was looking for when I started my latest research was to find an investing system that smoothed out the ride of the tumultuous stock market. My current investment system does not get rid of the roller coaster ride of my market value but it does use a smooth invested value figure as my basis for investments. In other words, I do not look much at my market value, I pay more attention to the initial investment values to make my investment decisions. Since I will hold stocks until they earn a pre determined positive gain I do not pay much attention to the stocks that are lower than their purchased value. The market value of the income funds are also not a large concern since I am looking for income from these funds that continue to purchase more shares that then earn more income. I understand I have not completely explained the stock trading system I am currently using. I could not do justice to the subject on a single web page. It would be best for your to purchase The Brainwashing of the American Investor where you can learn the entire system. If you should decide to read this book and then want to contact us and ask some questions please feel free to do so. The part of the system where you use S&P ratings to find quality stocks fell apart with Lehman and AIG and this made me look into other ways to find good stocks. I’m learning as I go and would appreciate any input on these systems. Listed below are the trades I have made since early in May 2008. It is interesting to see that there were some profitable trades even in a rocky market. Do not use my investments as recommendations, you must learn the system yourself and make your own decisions.
Closed Trades
You will notice that I lost large percentages on both LEH and AIG. Although this system is not a system where you expect to take losses they are not inevitable and are possible in this system. In short, the system calls for your to get out before a stock completely loses value. These losses should be infrequent, but we'll wait and see how it goes. Return from the Stock Trading page to the Retirement Investing page.
|
authored by Steven R. Selengut.
