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DarkReaper (60.87)

A Pessimistic Approach to Investing

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May 31, 2009 – Comments (3) | RELATED TICKERS: KOPN

So during the downturn of the economy, notice a new way to filter stocks, find the stock that actually did great +5% or better during the most negative days 300 DOW drops in the stock market. Then when the stock market started to recover +200 DOW days these stocks did awesome compared to the rest of the market. A winner is a winner no matter the day. Actually only look at the negative 300 DOW days as a way to find the next stock, forget looking at the positive days, go look for stock on the worst days ever.

The stock market / economy has nothing to do with the individual stock, when you invest you invest in the USA Economy / World Economy. If the DOW goes negative 600 in a day, its going to  take everyone with it. 

Basically each stock is like a paper boat, and there is a Giant Wave, the wave takes out 95% of the paper boats, but the 5% of the paper boats survive. When the Giant Wave starts to surge into positive territory, those 5% boats are already on top of the wave again.

An Example would be a stock named Kopin Corporation is one of those Magic Boats.

KOPN has surged 70% in a mere 2 months during the negative market days.

I don't know much about the stock to be honest, merely just watching trends.

The only time this does not work is with GOLD stocks; everyone hides there during negative days, and sells GOLD on the Positive days. I would avoid GOLD unless you are extremely pessimistic and think its doomsday, and then you might wish to buy a bunker in that case.

Google Finance stock screen is a great tool for filtering, also would recommend never to buy a stock over 10 dollar share price in real life, that way there is not much room left to fall. Been badly burnt in the past buying +20 prices.

If your just starting the stock market stick to the smaller stocks and don't invest your life fortune at the start, start out gradually with 1000 dollars to 5000 dollar investments, get your feet wet before you fully jump in.

The Glass is Always Half-Empty,

DarkReaper

3 Comments – Post Your Own

#1) On May 31, 2009 at 5:30 PM, walt373 (31.36) wrote:

also would recommend never to buy a stock over 10 dollar share price in real life, that way there is not much room left to fall. Been badly burnt in the past buying +20 prices.

This is totally wrong... you should learn about what makes stock prices move.

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#2) On June 05, 2009 at 2:17 AM, DarkReaper (60.87) wrote:

When you get a higher rating then me ,

then you can tell me I'm wrong, til then go away.

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#3) On June 05, 2009 at 2:25 AM, portefeuille (99.96) wrote:

When you get a higher rating then me ,

then you can tell me I'm wrong, til then go away.

okay then I will try:

also would recommend never to buy a stock over 10 dollar share price in real life, that way there is not much room left to fall. Been badly burnt in the past buying +20 prices.

This is totally wrong...

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