Buy Stock – Girlfriend Strategy

Last year I taught my girlfriend how to buy and sell stocks. Since then, she has developed a strategy to make her a lot of money. I find it a little stupid to tell you because it is rather rough and simple. There is no rationale, only minimal technical analysis. All the standard methods of stock selection are not really applicable here. The only reason I am, I even think, is that I see her 10% to 20% in a month, not routine. Let me outline her strategy so you can play with it and hope to make some money yourself

She first starts a stock watch list. In it, it makes all the big companies that may be volatile, but very secure. The list may include Apple, Microsoft, and / or Visa. These companies will not be closed, and weekly or monthly price fluctuations greater than or equal to 10%. She will also put on the current hot stock watch list. For example, agriculture and oil have been very hot recently, so she leads them in these industries and adds them to the watch list

Now she sets the watch list, she uses Yahoo's historical quotes and charts to find a (19459002

For example, Apple (AAPL) has dropped to 165 times as of August 9, 2008, when writing this article for the past two months alone. Twice before the reversal hit 180. It sits today at 169.55, bouncing its last bottom 153, and heading towards 180.

As you can see, AAPL is bouncing between 165 and 180. She buys at 165, exits 180. Each time it grows almost 10%. Now here is the distortion. She does not buy a 10% return on the stock, she buys a call option and a downside option. She uses only the stock price to tell her when to enter and exit her respective options. With an option, you can increase your return and earn two to ten times the profit.

If the transaction is wrong, she has a strange stock trading strategy that seems to work in this market. I usually cut down my losses, but she actually bought more down. This makes her contract mean lower cost. Now she's just waiting for the stock to rebound. Since she has lower average costs, the stock does not have to bounce back all the way back to 180 (as in our example) to make a profit for her

Most of the time the bounce does come and she has no losers . The reason for the rally is in the stock selection. These are the major companies that face some bad news or difficult times dragging them down. However, if prices are low enough, mutual funds will always intervene and buy

Our economic times in 2008 are very uncertain. We have a presidential election coming, oil prices going up and down, the economy is falling, and nobody knows when the good news is coming.

Do not miss this opportunity