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<< Return to Part 2

The Reality

All these numbers looked very tempting to me, and I started experimenting to see how fast I could double my money. After several false starts, this is where I am.

  • I started my latest run on January 19, 2019, with the following buy:
  • DIA: 400 Shares
  • Price: $125.87
  • Subtotal: $50,348.00
  • Buying commission: $8.95
  • Total initial capital of $50,356.95.

By the time of this writing (May 14, 2014),

  • Days passed: 116 days
  • Total trades made: 67 trades
  • Net after expenses: $4,485.77
  • Balance as of May 14, 2014: $54,842.72

Figure below shows how it grew.

My batting average is about 80%, which is equivalent to a hit-to-miss ratio of 4-to-1. In every five trades, I made money in four of them and lost money in one of them. This is shown below.

The average return per trade has been leveled to about 0.13% as shown below.

With an average of 0.13% return per trade, it will take about 550 trades to double my money, as shown below.

Since on average I have been doing one trade in a little less than every other calendar day, at this rate I will double my money in about 1,000 calendar days, or about 3 years. This is not bad.

Cautionary Notes

I must caution that what I am doing here is highly risky and is not suitable for most individual investors to follow. It takes nerves of steel to trade in and out and a nimble picking of the stocks while paying attention to all the financial, political, and other relevant news. It demands your full attention, and you cannot pull this off by doing this on the side. After each trade, I plow back the entire net into the next trade. If I am not careful, any one of the trades could cause irreparable damage to the program. All I can say is that I have been very lucky to keep this program going without any major hiccups so far.

Here are some more notes to this investment program:

  1. In this program, I practice what is commonly called the swing trade. In a swing trade, a position is opened (bought) and closed (sold) in a matter of minutes or hours. If I could do it in seconds, I would. But my brain, computer, and fingers do not work that fast. I usually close out my position before the day is over.
  2. I started this investment program as a supplement to my Poor Man's Program Trading. When the DJIA is meandering at a relatively elevated level, as it has been the case in the last six months, I have a large amount of cash idling in my account. So, this swing trade is a good complement to that program trading.
  3. At about half way through this swing trade, I have gathered enough confidence and I doubled my stake on March 12, 2012. However, in this report, I have adjusted all figures to reflect the progress of this program based on the initial investment of $50,356.95.
  4. The stocks I picked for this swing trade program is not limited to DIA. I have picked stocks from DJIA 30 as well as S&P 500. I have picked other major ETFs besides DIA also. In fact, I pick any stock or ETF that would fit my swing trade criteria.
  5. For now, I am limiting myself to just one trade a day. There is a limit to my concentration on it.
  6. Every day, I glean through the list of DJIA 30 and some of S&P 500 as well as some selected ETFs, looking for possibilities for an upward movement of at least 0.1%. I then select the one best candidate and enter a buy order, hopefully at the low point of the trading range. Once I have bought it, I then immediately place a sell order at a price which is most likely to achieve within the rest of the day. If the desired price is not reached, I will then try to sell it at whatever price I can get before the market closes. In the unlucky event that the price falls below my purchase price, I also try to unload my position before the market closes before the loss is more than from 0.5 to 1.0%.

You can see for yourself in the table below the first 40 trades I made under this program. I'll give an example as a way of explaining this table.

After the 4th trade (GLD) on 1/24/2012, I had a balance of $51,107.73. The next day (the 5th trade), I bought 1,710 shares of AT&T (T) at $29.87 with a total of $51,086.65 (including a commission of $8.95) which was pretty much the largest amount of T I could buy with the balance from the previous trade. As T was on the down trend, I sold it off at $29.90, making a net of $32.41 in this trade. The day after (the 6th trade), I tried T again and I netted only $49.51. In the following day (the 7th trade), I again tried T and this time I was clobbered by a loss of $224.09.

Buy

Sell

Trade No.

Stock/ETF

Date

No. of Shares

Buy Price

Commissions

Buy Total

Sell Price

Commissions

Sell Net

Net

Cumulated Net

Balance

1

DIA

1/19/2012

400

$ 125.87

$ 8.95

$ 50,356.95

$ 126.20

$ 9.92

$ 50,470.08

$ 113.13

$ 113.13

$ 50,470.08

2

PG

1/20/2012

770

$ 65.30

$ 8.95

$ 50,289.95

$ 65.75

$ 9.92

$ 50,617.58

$ 327.63

$ 440.76

$ 50,797.71

3

DOG

1/23/2012

1300

$ 37.13

$ 8.95

$ 48,277.95

$ 37.32

$ 9.94

$ 48,506.06

$ 228.11

$ 668.87

$ 51,025.82

4

GLD

1/24/2012

315

$ 161.80

$ 8.95

$ 50,975.95

$ 162.12

$ 9.94

$ 51,057.86

$ 81.91

$ 750.78

$ 51,107.73

5

T

1/25/2012

1710

$ 29.87

$ 8.95

$ 51,086.65

$ 29.90

$ 9.94

$ 51,119.06

$ 32.41

$ 783.19

$ 51,140.14

6

T

1/26/2012

1710

$ 29.55

$ 8.95

$ 50,539.45

$ 29.59

$ 9.94

$ 50,588.96

$ 49.51

$ 832.70

$ 51,189.65

7

T

1/27/2012

1710

$ 29.39

$ 8.95

$ 50,265.85

$ 29.27

$ 9.94

$ 50,041.76

$ (224.09)

$ 608.61

$ 50,965.56

8

DIA

1/27/2012

400

$ 126.18

$ 8.95

$ 50,480.95

$ 126.35

$ 9.94

$ 50,530.06

$ 49.11

$ 657.72

$ 51,014.67

9

T

1/30/2012

1740

$ 29.23

$ 8.95

$ 50,869.15

$ 29.27

$ 9.94

$ 50,919.86

$ 50.71

$ 708.43

$ 51,065.38

10

DIA

1/30/2012

400

$ 126.10

$ 8.95

$ 50,448.95

$ 126.06

$ 9.94

$ 50,414.06

$ (34.89)

$ 673.54

$ 51,030.49

11

DIA

1/31/2012

400

$ 126.71

$ 8.95

$ 50,692.95

$ 126.18

$ 9.94

$ 50,462.06

$ (230.89)

$ 442.65

$ 50,799.60

12

T

1/31/2012

1720

$ 29.42

$ 8.95

$ 50,611.35

$ 29.79

$ 9.94

$ 51,228.86

$ 617.51

$ 1,060.16

$ 51,417.11

13

DIA

2/2/2012

405

$ 126.81

$ 8.95

$ 51,367.00

$ 126.90

$ 9.94

$ 51,384.56

$ 17.56

$ 1,077.72

$ 51,434.67

14

DIA

2/3/2012

400

$ 127.90

$ 8.95

$ 51,168.95

$ 128.32

$ 9.94

$ 51,318.06

$ 149.11

$ 1,226.83

$ 51,583.78

15

DIA

2/6/2012

400

$ 127.99

$ 8.95

$ 51,204.95

$ 127.88

$ 9.94

$ 51,142.06

$ (62.89)

$ 1,163.94

$ 51,520.89

16

DIA

2/7/2012

400

$ 127.83

$ 8.95

$ 51,140.95

$ 127.90

$ 9.93

$ 51,150.07

$ 9.12

$ 1,173.06

$ 51,530.01

17

T

2/7/2012

1720

$ 29.92

$ 8.95

$ 51,471.35

$ 30.00

$ 9.95

$ 51,590.05

$ 118.70

$ 1,291.76

$ 51,648.71

18

VZ

2/7/2012

1100

$ 37.94

$ 8.95

$ 41,740.95

$ 38.15

$ 9.76

$ 41,955.24

$ 214.29

$ 1,506.05

$ 51,863.00

19

XOM

2/8/2012

610

$ 84.90

$ 8.95

$ 51,797.95

$ 85.23

$ 9.95

$ 51,980.35

$ 182.40

$ 1,688.45

$ 52,045.40

20

SPY

2/9/2012

385

$ 135.25

$ 8.95

$ 52,080.20

$ 134.82

$ 9.93

$ 51,895.77

$ (184.43)

$ 1,504.02

$ 51,860.97

21

XOM

2/8/2012

610

$ 84.85

$ 8.95

$ 51,767.45

$ 84.90

$ 9.95

$ 51,779.05

$ 11.60

$ 1,515.62

$ 51,872.57

22

DIA

2/13/2012

400

$ 128.66

$ 8.95

$ 51,472.95

$ 128.72

$ 9.93

$ 51,478.07

$ 5.12

$ 1,520.74

$ 51,877.69

23

XOM

2/14/2012

615

$ 84.20

$ 8.95

$ 51,791.95

$ 84.48

$ 9.95

$ 51,945.25

$ 153.30

$ 1,674.04

$ 52,030.99

24

VZ

2/14/2012

1375

$ 37.81

$ 8.95

$ 51,997.70

$ 38.01

$ 9.95

$ 52,253.80

$ 256.10

$ 1,930.14

$ 52,287.09

25

T

2/15/2012

1750

$ 29.86

$ 8.95

$ 52,263.95

$ 29.87

$ 9.95

$ 52,262.55

$ (1.40)

$ 1,928.74

$ 52,285.69

26

T

2/15/2012

1324

$ 29.81

$ 8.95

$ 39,477.39

$ 29.83

$ 9.95

$ 39,484.97

$ 7.58

$ 1,936.32

$ 52,293.27

27

GLD

2/16/2012

315

$ 166.21

$ 8.95

$ 52,365.10

$ 166.95

$ 9.90

$ 52,579.35

$ 214.25

$ 2,150.57

$ 52,507.52

28

PG

2/21/2012

810

$ 64.55

$ 8.95

$ 52,294.45

$ 64.61

$ 9.89

$ 52,324.21

$ 29.76

$ 2,180.33

$ 52,537.28

29

VZ

2/23/2012

1380

$ 37.95

$ 8.95

$ 52,379.95

$ 38.12

$ 9.90

$ 52,595.70

$ 215.75

$ 2,396.08

$ 52,753.03

30

WMT

2/27/2012

900

$ 58.57

$ 8.95

$ 52,721.95

$ 58.37

$ 9.91

$ 52,523.09

$ (198.86)

$ 2,197.22

$ 52,554.17

31

DIA

2/28/2012

405

$ 129.58

$ 8.95

$ 52,488.85

$ 129.90

$ 9.90

$ 52,599.60

$ 110.75

$ 2,307.97

$ 52,664.92

32

XOM

2/28/2012

605

$ 86.80

$ 8.95

$ 52,522.95

$ 87.26

$ 9.90

$ 52,782.40

$ 259.45

$ 2,567.42

$ 52,924.37

33

CSCO

2/29/2012

2630

$ 20.12

$ 8.95

$ 52,924.55

$ 19.95

$ 9.90

$ 52,458.60

$ (465.95)

$ 2,101.47

$ 52,458.42

34

GLD

3/1/2012

315

$ 166.06

$ 8.95

$ 52,317.85

$ 166.45

$ 9.89

$ 52,421.86

$ 104.01

$ 2,205.48

$ 52,562.43

35

MRK

3/1/2012

1380

$ 38.01

$ 17.90

$ 52,471.70

$ 38.24

$ 9.90

$ 52,761.30

$ 289.60

$ 2,495.08

$ 52,852.03

36

GLD

3/5/2012

315

$ 165.54

$ 8.95

$ 52,154.05

$ 165.80

$ 9.89

$ 52,217.11

$ 63.06

$ 2,558.14

$ 52,915.09

37

GLD

3/6/2012

325

$ 162.60

$ 8.95

$ 52,853.95

$ 162.72

$ 9.89

$ 52,874.11

$ 20.16

$ 2,578.30

$ 52,935.25

38

GLD

3/7/2012

324

$ 163.20

$ 8.95

$ 52,885.75

$ 163.75

$ 9.90

$ 53,045.10

$ 159.35

$ 2,737.65

$ 53,094.60

39

MCD

3/8/2012

548

$ 96.89

$ 8.95

$ 53,104.67

$ 96.98

$ 9.90

$ 53,135.14

$ 30.47

$ 2,768.12

$ 53,125.07

40

GLD

3/12/2012

322

$ 164.75

$ 8.95

$ 53,058.45

$ 165.00

$ 9.91

$ 53,120.09

$ 61.64

$ 2,829.76

$ 53,186.71

Source: How To Double Your Money: Part 3, The Results