Could it be this easy?

[Handle123]

How bout looking at sectors of the S&P, find 1-3 sectors that are the worst at least 3 of 4 years recent years and buy Dec 31 best stocks of the worst sectors. Think this work better. Possibly less risk and better reward.

 

[Saltynuts]

Great example of why 99% of traders lose.

How is that? Especially when a lot on this thread say it might be a good system, and apparently people wrote books about this system or something close to it lol? Do explain yourself plz.

 

[Saltynuts]

How are you letting your profits run when you are exiting on pullbacks? Stocks do have periods of consolidation or pullbacks. Does not mean the trend is over. Not even close. So, you end up ditching stocks that could very well end up the big winners. What you are doing is not trend following the way it is intended. And I subscribe to trend following as my method of trading.

So I'm not sure you understood my system. Every [time period] I'm selling the [5] stocks in which I'm biggest down or have had the least appreciation. So my winners will pull ahead, AND THEY WILL HAVE ROOM TO CONSOLIDATE. If one is up by 50%, but then pulls back 10%, I'm selling the one that is only up 5% long before I sell that first one. The WINNERS I give time to consolidate, fly my beautiful babies, FLY!!!! The LOSERS I cut short.

 

[smallfil]

So I'm not sure you understood my system. Every [time period] I'm selling the [5] stocks in which I'm biggest down or have had the least appreciation. So my winners will pull ahead, AND THEY WILL HAVE ROOM TO CONSOLIDATE. If one is up by 50%, but then pulls back 10%, I'm selling the one that is only up 5% long before I sell that first one. The WINNERS I give time to consolidate, fly my beautiful babies, FLY!!!! The LOSERS I cut short.

Sounds like the Dogs of the Dow method. However, that is not how a trend following system is supposed to work. A trend following system pretty much sits on a trend as long as it is intact. Not the same as buy and hold either where you do not have a clear exit point. You have stop losses in place to take you out when the trend ends. Otherwise, no reason to exit or close the position.

 

[taowave]

not really sure why Guru said what he said,but I can tell you that until you "do the work" your half baked theory will implode....

 

[carlaherrera]

You will have to consider a lot of things here like the trading cost and the taxes, etc. Try to make a proper analysis of it and then take a decision, good luck.

 

[nickolelo]

Woah!! You are up for some serious risks. I would not advise you to do that but still let me know once you have tried this strategy. I genuinely want to know how much you earn after this.

 

[fredfrazier]

You need some serious guidance bud! It is not as easy as you are thinking it to be. I hope you don’t lose much with this.

 

[destriero]

So much edge in this thread. His only public trade, other than 30 shares of MSFT, is losing half of his account short a meme stock.

 

[taowave]

What is mind boggling is that the OP won't spend 5 minutes backtesting a simple momentum system that trades his chosen strategy,rebalancing weekly,selecting the highest RS/ momo stocks that meet his criteria..