FREE DAY TRADING SYSTEM

As many of you know by now, I am blogging about turning $10k into at least $20k in the market in less than one year. I have a specific plan on how to accomplish this and it doesn't entail trading everyday, although I need to watch my positions carefully for resistance and support levels. I started on December 12, 2011 and the account is up 17%. There has only been one trade, the purchase of GEOY at $19.03, now trading at $22.24.

Discipline and patience are two of the most valuable assets you can possess as a trader. Achieving both however, can be very challenging.

I am no doubt a stock junkie and practically everyday I think of new theories on how to beat the market. My latest thought was more for day traders than investors/traders like myself.

It's a system that has to be tested, but I will leave that up to you. It goes like this;
1. go to barchart.com
2. find the bottom 100 sector (a feature of barchart that lists the 100 stocks that have most under performed the market using some kind of beta formula)
3. buy the stock that has gone up the highest that day, percentage wise, at the end of the trading day before 4pm. Make sure there is enough liquidity so that when you want to sell, it won't be a problem. For example, today Friday 1/27/11  it was QPSA which traded over 3m shares and was up 33%. Hold until the end of the next trading day and sell it. Many of these beaten down bottom 100 stocks can pop upwards of 100% in a few days or less. There are alot of dynamics at work here. First, there will be a ton of short covering, the penny stock whores will be going crazy and these stocks are so beaten down, there are no sellers left.
4. rinse and repeat the next day. make a note, see how QPSA does on Monday.

Oh, and one more thing, am I the only one who thinks that Jamie Dimon has gone from a socialist to a capitalist in just a few short years? From screaming for a bailout to crying about too much regulation?

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