Gaining Money Through Short-Term Trades

Fibonacci-Stocks.com has been very successful over the past 15 months by gaining 130% on 19 trades that are listed on the StockTable1 page.  You have probably heard the old saying of "buy low and sell high."  I finally figured out where you can call an intermediate stock market bottom to satisfy the "low" part of the gain formula.  The secret is to pay attention to the NYSE McClellan Oscillator, $NYMO, which is tracked at StockCharts.com.  When $NYMO is -80 or lower on the chart, that is the time to buy.

Now, the second part of the winning formula is to know which stocks to buy at the bottom.  I prefer to buy ETFs because they are tied to the macro view of the economy which is also in lock-step with the stock market.  I previously tried to trade individual companies, but there are too many unknowns about companies that you may never know about soon enough even if the stock has already dropped.  It could fall a lot further.  Therefore, the ETFs are immune to negative news about just one of the stocks that they may have in their portfolio since they have a wide diversification.

One ETF that I like to trade is IBB, a drug company ETF.  Their major holdings are big biotech companies, and drug companies are in a bull market because people are constantly in need of medications.  As long as the stock market is going up, IBB will be rising also.  So, whenever you can buy IBB at a market bottom, you are 99% guaranteed to achieve a gain.

Another stock that I like is XIV, the inverse volatility index.  This ETF is a bet that volatility will go down.  Thus, when you buy XIV at a bottom, it is certain to go up as the stock market recovers from bad news.  Then, to complete your gain, you must sell these stocks when you are up 10-20% because the market will crash again sooner or later.  If you have locked in your profits, you can load up again at the next bottom and gradually get rich through the stock market cycles.