Replies to post #41877 on A.I.M. Users Bulletin Board (AIMUSERS)

[SFSecurity]

Hi Lostcowboy, and Gang; To find the single spreadsheets on the http://www.wiley.com/WileyCDA/WileyTitle/productCd-0470049774.html site, click on the "More" link.

Thanks a whole bunch, Lostcowboy, for the tip about Gummy Stuff. The http://gummy-stuff.org/index.shtml site does not always connect, but, fear not, as it is all archived at http://www.financialwisdomforum.org/gummy-stuff-tutorials/ The tutorials are well worth reading.

Here is an example: http://www.financialwisdomforum.org/gummy-stuff/buy-sell.htm The lines that start with a ">" are the snarky "comments" of his "students." Great fun to read.

a Buy & Sell Strategy

I've always felt that people over-react to good or bad news ... especially stock traders.
Earnings come in a penny below estimates, everybody yells "the sky is falling!" and the stock plummets ... only to quickly recover.

>Yeah, so?
So I figured I could take advantage of that as follows:

I look for a high-volatility stock. One that often changes by 3 or 4% in a day.
If the closing price is significantly lower than the open, I buy at the close ... figuring that it's an over-reaction and the stock will recover quickly.
If the close is significantly higher than the open, I sell at the close.

>You always buy or sell at the close?
Yes. I have my finger on the Buy / Sell button when the market closes.

>And it works? I mean, have you made a bundle with that strategy?
Last year, 2007, I was heavily into CBQ and was quite succesful, making 25% for the year.

>And this year, 2008 ... it still works?
Uh ... no, but I thought it was interesting nevertheless. (Of course it didn't work as well in 2008 but he didn't know the market was crashing to one the worst bear markets in recent history.)

>Where do you find them stocks that plummet then recover?
You can try DSA. (It is a link to javascript:OpenWin('DSA.htm') that you can get to on the site.)

Here's a spreadsheet that employs this buy-sell strategy:

The spreadsheet that goes with this is at: http://www.financialwisdomforum.org/gummy-stuff/Excel/buy-sell.xls


Each of the spreadsheets is inside the tutorial. Also, one has to move the charts around as they overlap the calcs. They can be moved to the side or they can be moved to another sheet.

There are over 500 (!!!) spreadsheets available. Not all are interesting to us but most are worth at least a quick review. I've looked at a half-dozen so far and see lots of value.

I wish I knew the macro language and where it hides as there are things, like downloading data, that would be useful to add to other spreadsheets. Oh, well. Maybe someone could help with this or you know someone who could do it.

Automating the work would mean even more time to play.

Best,

Allen