What’s next?
That’s the question on the hearts and minds of investors and traders around the world…
What is going to be the next big strategy on Wall Street that will make everyday Joes richer than they’ve ever dreamed possible?
It seems like every few years, a new stock strategy comes out that people make tons of money on – and while it seems like it’s been a while since we’ve had a new one come out – it seems the internet has figured out a new, if not riskier, way to make money…
And you’ll never guess what that is.
Now, this isn’t something that GorillaTrades subscribers will ever have to worry about…
We have a system that has proven to work, as time and time again – our subscribers have had the chance to make money through our process.
No…
We’re talking about people that don’t have a system to work with – we’re talking about the people that don’t have anything to rely on other than their wit – and maybe a little bit of luck.
First, let’s revisit a few of the older “strategies” of the past – so you get a feel of where we’re going.
We have the traditional form of trading that most people are familiar with – position trading.
Position trading, often referred to as “buy-and-hold” trading, uses longer term charts – anywhere from daily to monthly – in combination with other methods to determine the trends in market direction.
You could be holding a stock anywhere from a day to years – all depending on the trend…
It’s the way many people still trade to this day.
The birth of online trading then gave birth to our second strategy…
Day trading.
For those that don’t know, day trading is the strategy of buying and selling stocks within the same day and always selling them before the trading day is done.
You know these day traders…
In fact, you may be one of them! They’re the people that are generally glued to their computer screens from 8:45am to 4:15pm – often sweating, biting their nails, or chain-smoking cigarettes.
Sure, it can be effective for some, but at what price?
Both of these two strategies then gave birth to our third stock strategy…
Swing trading.
Swing trading takes the speed and short time table of day trading and brings in the charting needed for position trading because when a trend breaks, there is usually some price volatility as the new trend tries to establish itself.
Swing traders buy or sell as that price volatility sets in.
Swing trades are usually held for more than a day but for a shorter time than trend trades. Swing traders also generally create a set of “rules” or guidelines based on technical or fundamental analysis.
It’s through these rules that they figure out when to buy and/or sell. These trading rules or algorithms are designed to identify when to buy and sell a security.
And while the GorillaTrades system accommodates all styles of trading during any market environment, this is our preferred approach to trading.
Of course, then there’s always the shorters out there who prefer to bet against a stock – which always baffles me.
However, as I said, the internet seems to have figured out a new one – though, as with most things – it’s probably NOT new…
Just recycled.
What’s the newest thing?
Buying last year’s dogs.
What does this mean? People are buying up all of the stocks that did terrible last year in hopes that they’ll rebound at some point and make them rich…
Now, this isn’t something that some stoned economics major dreamed up – it’s being backed up by major money management companies!
They’re saying that by buying the stocks that finished at the bottom of the previous year, at the beginning of the following year screens out those stocks that are just on the decline of a dying business and those that can make a rebound – and these stocks have historically produced annual returns of 2.6% over the past 30 years.
One of the major management companies has even coined a term for this new strategy called, the “enhanced laggard” model, and it’s apparently been a winning strategy for a while…
Yet nobody talks about it.
Why?
Because it doesn’t always work.
If you would have done the same thing last year – you’d have LOST money.
Sigh…
If people only knew how easy it was. Well, how easy GorillaTrades can make it for them.
It doesn’t get much simpler than opening an email and getting the name of a stock. You don’t have to sit in front of a computer for hours on end, trying to decipher graphs.
The GorillaTrades system does all of that for you…
But our reach only goes so far.
I don’t know about you – but I’d rather have less worry than more worry.
I guess some people just like to do things the hard way.
“Belief like any other moving body follows the path of least resistance.” – Samuel Butler
