Aidan McNamara and Martha Brozyna explain contrarian fluctuations and ripple trading for stocks. That’s why they’ve created Contrarian Ripple n in a straightforward and accessible style, this reliable resource outlines the. That’s why they’ve created Contrarian Ripple Trading. Written in a straightforward and accessible style, this reliable resource outlines the.

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The most obvious one is that it keeps costs down. Fund managers are fully aware that their investment decisions and the outcomes generated are placed under a microscope and their performance is judged often on the basis of fairly short-term results.

They relate the experience of selling a dropping stock just before it starts to rippld again.

The overall market too, as measured by market indices, exhibits exactly the same movements up and down that characterize the majority of individual stocks, and this is as would be expected as the overall market is nothing more than a grouping of those stocks.

By combining aspects of investing–notably the need for safety and decent returns–with characteristics of short-term speculation, Contrarian Ripple Trading arms you with a technique that can be used to generate a reliable extra income stream through low-risk, short-term stock trading. Pacifico No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section or of the United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Tradinng Center, Inc.

What stocks did they actually buy? With the acknowledgment that there are patterns, trends, cycles, and fluctuations in every market, in the next two chapters we look at some of the reasons that they work in this way.

Our contrarian approach in our trading is to make our best efforts to buy the stocks we trade at times that they are at relatively cheaper price levels rather than at more expensive price levels.

Indeed, to borrow from the dialectical materialists, this could be viewed as a case of thesis-antithesis-synthesis, where each price rise or fall carries within it the seeds of its own destruction and creation of a new price move.

Reynolds a unit of Reynolds American Inc. Other editions – View all Contrarian Ripple Trading: However, it was left to Robert Rhea to organize and summarize the theory more fully. This enabled him to figure out whether the company to which the bank intended to lend money had the financial strength and cash flow to repay ropple loans.

Indeed, we have read more than one investing book that takes over pages to educate its readers that the long-term strategy of buying and holding stocks is the best way to earn money in the stock market.

Over the last half century, ordinary adults have been expected not only to intelligently invest in stocks as a sort of recreational pastime—a rite of adulthood, an aspect of manhood, particularly when markets are rising and money appears to be there for the plucking—but increasingly, with the tgading of self-directed pension plans, as a necessary gipple of retirement funds.


Because the trader is seeking to exploit the short-term ripples, he or she also needs to target a relatively modest profit margin on each individual trade. The act regulated companies that invested and traded in securities, including mutual funds, by calling on them to disclose information about their operations, finances, and structure. Even when they are not promising to teach others how to interpret the signs, there are those who promise that they can provide the tools necessary to achieve success.

It has almost always been considered a truism in the past that the small, private investor is the one who does all the wrong things. ISBN confrarian 1. See more on selling with our method in Chapter 4 and check out Appendixes A through C for the full record of our profitable closing sales. Again, just as you would not turn down a promotion at work because the higher salary would mean paying more in tax, the trafing levels of taxation applied to long-term and short-term trading gains should not dissuade you from trading if this seems the more lucrative path overall for you.

How we do it is the subject of this book, and so we invite you to discover a short-term trading method that is simple, low risk, profitable and, yes, fun. Who can benefit from an extra income generated in this fashion?

Contrarian Ripple Trading: A Low-Risk Strategy to Profiting from Short-Term Stock Trades

Day trading was a much easier endeavor during the bubble years of the late s than it has been in the last few years, and pure day trading has declined accordingly. That’s why they’ve created Contrarian Ripple Trading. This is true even of income generated in a traditional tax-deferred IRA, as opposed to the Roth version mentioned above.

McNamara and Martha A. This book may not make you rich. Companies issue a limited number of shares, so when this finite number is then subsequently traded on a stock exchange, the level of supply in that particular stock on any particular day is constant and unchanging. Of these open positions as of February 28,15 were purchases made in the final week of February as the market fell back from its top of 12, on February 20, and eight were bought on February 27 as the market plunged points or over 3 percent that day.

Indeed, our own short-term trading theories and practice have a complicated relationship with Dow Contrxrian. Their prices were driven down significantly on at least one occasion as institutional investors in particular fled faced with bad news or negative perceptions. Read, highlight, and take notes, across web, tablet, and phone. It is no coincidence that the short-term fluctuations we perceive and take advantage of in individual stock prices mirror so closely those in the overall market—they are to all intents and purposes the same fluctuations.


This represents a Individual private investors do not cotnrarian this pressure of bosses monitoring their every investment decision.

The intermediate or reaction trends, rallies, or corrections, he called waves.

No eBook available Wiley. Note that such pressures on professional investors are huge when the stock has fallen with a thud. This is the stage when the smartest and most perceptive of value investors see their opportunity to come into the market at cheap levels. Chapter 4 Ripple Trading a la Contrarian Style. Regardless, we believe that it is the constant change of sentiment in the investment community, lurching from positive to negative and back again regarding the outlook for stocks, reinforced with data read from the Dow Jones Industrial Average Index that actually spurs the majority of individual stock buys and sells.

In reality, the number of buyers and sellers of a stock is always exactly equal, as there can be no sale or purchase without both a buyer and a seller.

Table of contents for Contrarian ripple trading

Many observers of a technical bent seek to use the chart patterns that such fluctuations create over a period of time to capture a bottom or top in either a stock or a market, with buying or selling action taken accordingly.

This is not surprising. Developments in technology, lifestyle choices, and general business and consumer trends are subject to changes that can be cyclical in nature, as certain industries or companies and their products come in or out of fashion or prominence. When you examine who these institutional investors are, whether money managers running mutual funds or other investment companies, pension funds, endowment funds, insurance companies, banks, and, increasingly hedge funds, it may seem that they are a world apart from the private individual.

We even came across one book in which the author wrote out a short dialogue illustrating the way in which an investor should place a call to his broker in order to purchase a stock. There is a generally pervasive lack of confidence in contearian future. Again we emphasize that the purpose of using this research is to round out knowledge on your target companies, while not getting bogged down in the nitty-gritty rlpple financial ratios and other arcane information that the research also sets out for you.

Nevertheless, this growing optimism is tempered by lingering fears and doubts that what is happening is simply a rally within a continuing bear market. Inthe Curb traders moved indoors into a permanent domicile at 86 Trinity Place. One half of the couple writing this book is therefore literate in financial statements. Unfortunately, neither the professional nor the lay investor has a crystal ball to tell when the market is at its high or low.