Hey,
I've read the book and actually used it for quite awhile. Ultimately, I
stopped using it for a few reasons: 1) I bought a few stocks that took
huge losses (if I were to do it again I would make sure not to buy
stocks when they release earnings), and 2) taxes are very high on short
term gains.
On my website,
http://www.illiteratewithdrawal.com/stock-market/paytrading/, I did an
analysis of Paytrading using all available data at that time. One nice
thing about Paytrading is that it doesn't cost too much and you have
access to all previous stock picks...they don't try to hide anything
from you. Myself and a few others have analyzed the data and posted it
in spreadsheet format on this website.
Since I need to be able to pay for school now, I need to be more
conservative with my money. Therefore, I have stopped the more risky
(and time consuming) stock picking methods of Paytrading or
GorillaTrades (which is also talked about on that site). I am now using
iShares (up 33% in less than a year) and Schwab Equity portfolio picks.
I feel that these are safer and have historically actually outperformed
Paytrading or GorillaTrades with much, much less work on my part.
When you say the stock picked today was a disaster, what do you mean?
In my analysis of Paytrading picks from July 2001 to Februrary 2005,
the average hold time for a 1% gain was 8.37 days. You must remember
that it is unlikely to get a 1% gain within the same day. (I did have
this happen, and it is pretty incredible.)
Remember though, unless you are in for the long, long haul, sharp
losses greatly hurt the overall productivity of this method.
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