RunawayTrader

Faithful readers of my blog will remember that from time to time, I write about my famous, still unproven stock trading system that promises to turn me into a jillionaire in no time flat.

I last wrote about this powerful strategy a couple of years ago—about the time the market started to turn into crap. While I never revealed the full details of my surefire system, it was not for lack of charity to my fellow traders. My only excuse was I didn’t want to deliver some half-baked notion festooned with slick promises on which it could not deliver.

When I first mentioned this system, I was mostly “paper trading” to test its veracity across one, single stock. Voila! It managed to deliver something like 38 straight winning trades over as many trading days. I fully confessed at the time that such results were simply too good to be true. And more, I stated that I had, in all probability, bumped into a “system” that worked wonderfully when it worked, but bombed when it did not.

How prophetic was that prescient observation

I went on to successfully use the system for a few weeks, but then the market turned sour and so did my “surefire” strategy. To put it mildly, I lost my ass before I finally figured out that I had only a piece of a system, that’s all. An important piece, but not the whole megillah.

I was merely day trading (although quite skillfully) in accordance with the prevailing favorable market winds at my backside, the soothing zephyrs that make every trader a genius. But when the winds reversed and my strategy did not, my precious trading capital began to irretrievably flush its way down the Wall Street toilet.  After a while, I abandoned the effort. I think I wrote about that, as well.

But here’s the important point: had the winds of chance not changed (or if only I had caught the breeze a little earlier), I would have earned a million dollars in little more than one month. No foolin’.

Betting the Trend Again

The reason I mention this today is that I revisited the trading strategy this past week— and again, the paper (you know, the kind that don’t mean diddly-squat) results were truly phenomenal: 21 successful trade across 22 days and I doubled my monopoly money.

So, starting today, I’m putting my little plan back on the front burner where it can turn my hard-earned cash into piles of cash or cinders of dead presidents. I’ve already made my first trade and results of which will arrive tomorrow.

In any event, I’ll keep you informed. And if it seems like I’ve really got something, I’ll be glad to share it.

Meantime, is it Time to Sell Gold Again?

It’s a secret to nobody that gold is hitting all-time new highs and the bullion houses are at feverish pitch trying to get you to buy some. I’m thinking just the opposite. I bought gold Krugerrands back in fall 2008, at $771. I can sell them today at $1,246 each. That’s an increase of better than 60%. That should be my cue to take my profits and run.

Yes I know the economy is in a pickle globally things seem to be getting steadily worse. When it hits $1300 I’m outta here. I’ll buy it back at, say, $1000. Meantime, I’m just about set to take off again. I’ve got a lot a travelin’ to do.

Charlie, the Runaway Trader