Perpetual Lottery Tickets Drawer

Quote from random trader:

Stock market to the middle class is lottery to the underclass.

Background
This is the sister thread to "I trade 1 ES".

Objective
Buy and hold lottery tickets (penny stocks) until target is reached or all tickets expire.

System
Buy and buy more. Bias is up and up more. No indictors. Price is its own indicator.

Entry
Try to buy these tickets on sale. Those no one wants to touch are the best. That means they have to be cheap, right? Will be buying 100 shares of each. All subsequent calculations will be done in $ terms, no percentages.

Stop
None. No fear.

Exit
Sell when the total investment doubles. No greed, just looking for a 100% gain.

Let N be the number of stocks, X be the $ of total costs of N stocks, P be the profit on a stock
On any day
Rank all N P’s from high to low and number them 1 through N
For I = 1 to N
If sum(P(I)) > 2X
Sell stock 1 through I
The rest (I+1 to N) is free lunch after the investment is doubled.
More...

That is pretty interesting. So what you are saying is that lower class likens the stock market to a lottery drawing (i.e. gambling) while the savvy upper and middle classes know better?

Pretty funny, 'no greed just looking for 100% gain. Sounds pretty greedy to me...hehehe

that algorithm seems a little primitive....it only sells when there's a profit,....but how about when there is a loss? lol
 
Quote from random trader:

11/3/03

N = 24
X = $1075
Sum(P) = $45

Stock market to the middle class is lottery to the underclass.
More...


I thought I should probably modify your calculation

N = 24
X = $1075
Sum(P) = $45 - 24x$5 = -$75

You forgot to include commissions....hehehe
 
Quote from OxonianTrader:



That is pretty interesting. So what you are saying is that lower class likens the stock market to a lottery drawing (i.e. gambling) while the savvy upper and middle classes know better?

Pretty funny, 'no greed just looking for 100% gain. Sounds pretty greedy to me...hehehe

that algorithm seems a little primitive....it only sells when there's a profit,....but how about when there is a loss? lol
More...

I am quoting "stock market to the middle class is lottery to the underclass" from either Liar's Poker or FIASCO. I am not smart enough to come up with something like that.

You don't sell your lottery ticket when the first number is drawn and it happens to appear on your ticket; you wait until the end, and it's either all or nothing.

100% is not greedy. If I am greedy, I'll be looking for the next NTES and a 6000% profit. :p
 
Quote from OxonianTrader:




I thought I should probably modify your calculation

N = 24
X = $1075
Sum(P) = $45 - 24x$5 = -$75

You forgot to include commissions....hehehe
More...

Fortunately, commision is $1 and included in the calculation. Answered this many times before. Another lazy guy caught red-handed. :D
 
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