Archive for March, 2012

BOOK: Trading Secrets. REMINDER-Playing Footsie

20 Hard and Fast Rules to Help You Beat the Stock Market
By Simon Thompson.

Playing Footsie. (NOTE: this is a bull market phenomenon)

In the UK, the FTSE 100 is a listing of the top 100 companies in the UK, based on market value. The companies that make up the 100 changes each quarter.

The list is reviewed on the 2nd Wednesday of March, June, September, and December and companies are dropped on the 3rd Friday of those months. During those 7 trading days, funds that only invest in the 100 companies are forced to sell, thus lowering the price so that investors in the know, can buy these shares on the cheap.

All you have to do is buy shares of the companies that are being dropped from the 100 and hold for 3 months. Then do the same all over again by reinvesting the proceeds into the next companies being booted from the 100.

Ave quarterly gain has been 13.6%.
To find out the changes:

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Buy Stocks Before St. Patrick’s Day

On average, the market goes up:
0.34% two trading days before St. Patrick’s Day
0.37% the trading day before
0.07 on March 17th
0.19% on the day after
Cumulatively, that’s up 0.97% in 4 days!

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Investment Strategy: Only Hold Stocks on the First Day of the Month – March

Definitely made money: 5
Made NO money: 6
Depends upon when bought/sold: 1

Definitely made money: 2
Made NO money: 0
Depends upon when bought/sold: 1

Starting in January 2011, I started tracking the trading strategy of being in stocks only on the first day of the each month, and if this method outperforms a “Buy and Hold” strategy.

Background: The S&P reported that if someone invested $10,000 in the S&P 500 on Dec. 31, 1999, and left the money there until Dec. 1, 2010, they would have just $8,209. HOWEVER, an investor who was in the market only on the first day of every month over the same time period [buying at the close on Dec. 31 and selling at the close of the first trading day in January] would have $13,816.

MARCH – Depends upon when bought/sold. If you bought at the close on Feb 29 and sold at the close of March 1st, you would have made some money.

FEB – Definitely would have made money.

JAN – Definitely would have made money.

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