Contrarian Ripple Trading: A Low-Risk Strategy to Profiting from Short-Term Stock Trades

$8.19

  • Format: PDF
  • Pages: 199
  • Published Date: 2008

Description

Contrarian Ripple Trading arms you with a technique that can be used to generate a reliable extra income stream through low-risk, short-term stock trading. This book may not make you rich. But it may nevertheless give you an insight into a stock trading method that can make you money—maybe even enough money so that, like us, you can consider that the earnings you achieve constitute a second or third income for you.

Introduction:

This book will not make you rich. It will not tell you how we took $5,000 and turned it into $500,000 in just six months through expert market trading. It will not now show you how to do the same thing yourself. Sorry. So why read on? Well, we hope this book offers the reader something rather new and unique in the genre of stock market trading and investing literature. It sets out a method of short-term trading that we call contrarian ripple trading. That this book sets forth a technique for trading stocks hardly makes it unique.

There are plenty more books that set out to provide pointers to better investing or trading than you can shake a stick at. What makes this book unique is that it backs up its methodology with a genuine and complete trading record. We, the authors, a married couple and nonprofessional traders, have detailed in the appendixes to this book every single stock trade (no exceptions) that we have made for our own account during 2005, 2006, and the first two months of 2007, an end-point dictated by publishing deadlines. Within the body of the book, we have excerpted details from our trading record during this period—1,225 completed, roundtrip trades during the 26 months—to illustrate what we believe to be the fundamental factors that drive the market, how in our view a short-term trader can take advantage of and profit from these factors and to demonstrate the techniques that have allowed us to make such a large number of profitable stock trades during the period.

Trading profitably in our case means each and every one of those 1,225 completed, roundtrip trades came with no loss-making trades at all. Yes, that’s correct, no loss-making trades at all! And on February 28, 2007, just 48 positions remained open from our 1,246 stock purchases made during the 26-month period—open and awaiting a price recovery so that we can complete what we expect in each and every case to be profitable trades. Of these open positions as of February 28, 2007, 15 were purchases made in the final week of February as the market fell back from its top of 12,796 on February 20, 2007 and eight were bought on February 27 as the market plunged 413 points or over 3 percent that day. This reflects our contrarian approach that is outlined in detail in this book.

Contents:

  • The Buttonwood Tree
  • “In the Long Run, We’re All Dead”
  • Tides, Waves and Ripples
  • Ripple Trading a la Contrarian Style
  • What to Buy, When to Sell?
  • Contrarian Ripple Trading in Practice
  • Special Situation Purchases
  • On Self-Discipline