Aidan McNamara and Martha Brozyna explain contrarian fluctuations and ripple trading for stocks. That’s why they’ve created Contrarian Ripple n in a straightforward and accessible style, this reliable resource outlines the. That’s why they’ve created Contrarian Ripple Trading. Written in a straightforward and accessible style, this reliable resource outlines the.
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From an academic background, he is far removed from the position of a financially qualified individual. Regardless, we believe that it is the constant change of sentiment in contrariaj investment community, lurching from positive to negative and back again regarding the outlook for stocks, reinforced with data read from the Dow Jones Industrial Average Index irpple actually spurs the majority of individual stock buys and sells. Throughout the book, and in accompanying Appendixes, McNamara and Broz?
There certainly is room in our trading strategy, however ripp,e profit from purchases of stocks that have been knocked back temporarily, usually by one piece of news or an earnings report. But how common is this investing practice really?
Such trading amounts effectively to a throw of the dice. Account Options Sign in.
Contrarian Ripple Trading: A Low-Risk Strategy to Profiting from Short-Term Stock Trades
This is true even of income generated in a traditional tax-deferred IRA, as opposed to the Roth version mentioned above. In this scenario, any new tradign added are reflected in the fund, and the old stocks are removed so the link to the index as it is redefined continues.
Throughout the book, and in accompanying Appendixes, McNamara and Broz? Because the trader is seeking to exploit the short-term ripples, he or she also needs to target a relatively modest profit margin on each individual trade.
Contrarian Fluctations and Ripple Trading for Stocks
This is a wonderful form of investing—and Mr. The trick for the day trader is to make sure that the gains from his strategy at the end of the day outnumber the losses, and in such a proportion that it makes his trading worthwhile.
Worthless The authors claim no-loss tradding trades over a 26 month period. Our book begins with an introduction and is divided into eight chapters and four appendixes.
It has a number of devotees who look to achieve successful investment returns by going against the crowd. Of 1, profitable, closed, roundtrip trades during the 26 months, were bought and sold on the same day, were bought and then sold between one and three days, and were bought and then closed out at a profit on either the tradign or fifth day following purchase. Written in a straightforward and accessible style, this reliable resource outlines the approach they’ve successfully used to capture profits from the stock market for many years.
Of course, nobody likes to pay taxes. In most short-term trading strategies, a stock that moves with a glacial congrarian is generally perceived as bearing the kiss of death for quick trading profits. As we have made clear above, we share the view with EMH theorists and with Dow Theorists see Chapter 3 that all financial, economic and political rpiple that could affect a stock price are factored in, including all that research on the company done by professional analysts.
As contrsrian will see later in this book, the white-knuckle nature of our acid test of real trading in the real market is ratcheted up several notches by the fact that our trading method is based on contrarian principles, which we explain in Chapter 4.
Leather Company United States Rubber Company Other than Rippple Electric, it is quite likely that many of our readers have never heard of any of these companies. As Keynes once noted so famously, the market is a beauty pageant in which judges are not attempting to arrive at any objective measure of beauty, but rather trying desperately to guess how the other judges are voting.
The difference between us and the high profile experts is setting a goal that has not only been in our own reach, but we believe is within the reach trrading most regular Americans. This represents a Because we consider our method of trading to be an essentially simple one, we are not going to dazzle conhrarian readers with pseudo-science.
This is even true taking into consideration the higher capital gains tax payable on short-term gains as opposed to those cohtrarian on positions held over 18 months. We always factor in the costs of commission for doing a roundtrip trade when calculating the price at which we intend to sell our stock.
A Simple Way to Buy Low and Sell High
Again, just as tradung would not turn down a promotion at work because the higher salary would mean paying more in tax, the differing levels of taxation applied to long-term and short-term trading gains should not dissuade you from trading if this seems the more lucrative path overall for you.
It is in any case our contention that most how-to books of this genre try to teach their audience relatively simple techniques, some of which are useful, others wrong-headed. Otherwise the trend was flat to down. But take care with this number—see Chapter 2. Speculation is rampant and pushes the market ever higher.
It is true, however, that professional or institutional investors do dominate tradint market trading these days rather than private individuals acting on their own. The Dow Theory concentrates on identifying the primary trend because followers of the theory believe that the correct recognition of that trend is the best means to making money in the market.
Taking inflation into account, the investor would still be sitting on real losses in value to his portfolio.