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Why
Trade?
In
the year 2001, the Dow, NASDAQ and S&P-500 each declined.
But our trading strategy resulted in 370%+ during the same
time period. Can you achieve the same kind of gains?
The answer is YES---but you
can't just buy and hold. You have to trade.
Unlike long-term investing,
successful trading produces cash flow---small, repetitive
trades, though each resulting in small gains,
will add up to very large returns.
An experienced taxicab driver knows this technique intuitively.
What the veteran driver learns over time is that many small
runs produce far greater profits than a series of long runs.
It is a question of volume---for every short 1 or 2 mile taxi
run, the meter clicks in several dollars. Hundreds of such
runs produce three or four times more profit than a handful
of longer $20 runs.
So it is with trading. Many
successive stock “runs” can outperform even the best long-term
investment strategies.
"Unlike long-term investing,
successful trading produces cash flow---small,
repetitive trades,
though each resulting
in small gains,
will add up to very
large returns."
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For instance, suppose daily
trading produced an average gain of 0.5% (half a percent)
per day. It doesn’t sound like much, yet the annual gain per
year would be 260 trading days X 0.5%, or 130%. There isn’t
a portfolio manager alive who wouldn’t kill for that kind
of return!
Furthermore, 0.5% is rather
conservative in the hands of a skilled trader. When averaged
out, the Gar’s World Conceptual Fund produces more than twice
that percentage, even in a "bad" market.
Quick “taxicab meter” trading
is particularly superior to long-term investing when the market
is very volatile. Even in bear markets, an experienced trader
can catch the edges of volatile stocks and pile up almost
shocking returns. Meanwhile, the long-term investor suffers
through agonizing corrections or, at best, sideways no-gain
markets.
The trick is, of course, to
know how to choose the right stocks and to catch the edge
of their volatile swings. That’s where GarsWorld comes in.
Using our newly released flagship product, the StockVision, you can locate the
stocks that are most likely
to engage in a substantial swing.
In in many circles, this is
known as swing trading,
and that is what we do.
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