Would this work? (Stockmarket thread)

[Perfect10]

1. Save 30'000€/$/whatever

2. Buy stock for "1000 money" on the 1th (or whatever date but we'll make it the 1th so it's easier) but buy the stock that has fallen most that day, excluding pennystocks. Or a stock that has been in the news that's it's actually going backrupt. Buy it in the end of the day.

3. Go to train, eat, sleep then wake up.

4. Repeat with the stock that's fallen most on that day

5. Do it till the end of the month (30 days x 1000 = 30000) so that you've spent you cashingas.

6. Sell stock that you bought the 1th

7a. Sell every day according how you bought till the end of the month.
7b. Buy the stock that's again fallen most that day.




Since the stock market usually goes up and down because of news and what not and they usually correct them selfs after a few weeks then this could work?

What do you think?


Ps. You're allowed to call me an idiot since that's what I am. I don't know much about this stuff.

 

[mikeyb]

I remember trying out a similar strategy a few years ago when I tried to anticipate stocks falling due to profit warnings and the strategy consisted of short selling said stocks and buying them back at the end of the trading day or after a fixed % decrease. I didn't have any money of my own back then so I wrote a software to simulate the strategy, so obviously didn't take things into account like broker fees, delays, etc.

Bottom line: the market always reacts before you do.

As for buying stocks of companies that are going bankrupt, you should know that if the company goes bankrupt, you are pretty much guaranteed to lose your money!

 

[Perfect10]

I remember trying out a similar strategy a few years ago when I tried to anticipate stocks falling due to profit warnings and the strategy consisted of short selling said stocks and buying them back at the end of the trading day or after a fixed % decrease. I didn't have any money of my own back then so I wrote a software to simulate the strategy, so obviously didn't take things into account like broker fees, delays, etc.

Bottom line: the market always reacts before you do.

As for buying stocks of companies that are going bankrupt, you should know that if the company goes bankrupt, you are pretty much guaranteed to lose your money!

This isn't at all like you explained it. Also like I wrote not pennystock nor company that's going bankrupt.

 

[mikeyb]

This isn't at all like you explained it. Also like I wrote not pennystock nor company that's going bankrupt.

My bad I misread your post on both counts! This might work but you need to make the decision based on how soon the market is likely to correct itself - sometimes it will be a matter of days, but it could also be much longer depending on the cause. Also, how do you tell if the market has finished reacting? The share price could continue decreasing after you buy it and you could lose money that way.

 

[romangod]

What you're suggesting is a form of technical trading without the charts.

It can work and I've done it. I'd look for the biggest "losers" for the day and then do my DD as to why the stock fell. Especially if it was a major drop.


If the reasons were irrational and the company was still in good shape, I'd buy and set my sell limit right away at a reasonable profit.

You have to be careful and do your homework.


Good luck.