Tuesday, January 17, 2012

Dow futures are up 91 points this morning.  We feel comfortable increasing our sell prices on the positions that we purchased last Friday.  Last Friday, we started something new in our simple investment strategy.  When the market begins to fall, we purchased a double position for our first trade.  Frequently, we are only able to make one trade when the market initially falls.  The market will go down 75 - 100 points and then bounce back up.  By purchasing a double position on our first trade as the market begins to fall, we are able to double our profits on that first trade.

Yes, I realize that in any investment strategy there are always losses.  But, in our simple system we normally don't realize losses.  We just hold our positions until we hit our profit targets.   The only time we vary on this point is when we have invested all of our capital and the markets have fallen to a new trading range which normally is about 1,500 points, which is quite rate.  But, if this does happen, and it did once last year, we had to take a few losses in order to increase our capital for trading purposes.  The strategy worked well.  We made our money back quickly as we rode the market up and down within the new, lower trading range.

1 comment:

  1. Excellent post. You are a financial genius in spite of the mispelled word. Keep up the great work.

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