The following article was written by our guest blogger Rachel Fox. She is a 16-year-old movie actor and part-time trader. In this post she tells us how she works and makes over 30% return by stock trading. On her blog Fox on Stocks she teaches people how the capital market works.
My name is Rachel Fox and
I am a 16-year-old successful day trader, making slightly above a 30% return on
my day trades in 2012, sometimes reaching return levels of 64% and higher.
My primary work is acting.
I am best known as evil Kayla on Desperate
Housewives, Chloe on the Daniel Craig film Dream House, and other roles on shows
and movies including Alias, Melissa & Joey, and Private Practice.
I’m a closer, a high
risk-taker, and an adrenaline junkie. That’s why I’m a day trader. My time
horizon is anywhere from hours to a couple of days. I look for stocks that have
a history of volatility, swings in price anywhere from 50 cents to dollars at a
time. Generally, those are stocks with higher volumes, but on occasion, there
are few stocks that trade in lower volumes, but for some reason undergo a
volume spike. I’ll go after them because there is likely a reason behind the
spike and spikes in volume smell like blood to a day trading vampire.
The companies I focus on
vary from trade to trade. The stocks must be stable companies, with a long
trading history, and as I mentioned, have a good amount of volatility. I love
$MMM, $EBAY, $SBX, $SLB, and $APC. I generally do not target sectors but I may
do so in the future.
The most unique aspect of
my trading is that I often sell stocks short. Because of the infinite loss
potential, most people do not sell short. Maybe it’s because I know that what
goes up, must come down, or that I have a sense about the market, industry, and
company factors that lead to a stock’s price decline. I don’t know why, but I
am successful with short selling.
As I get older and need to
lower my risk exposure, I will turn to longer-term investments. I’ll buy mutual
funds, bonds, and individual stocks for their stability and dividend potential.
I love receiving dividends
on the stocks I buy on quick trades. It’s like getting a surprise gift! I can
imagine how happy long-term stockholders feel when they invest long-term in a
company and get the dividend payment from the company. It’s a Wa-Hooooo moment.
I recently discovered an
investing strategy called The Dogs of the Dow, which teaches an investor to
invest in the 10 top highest yielding stocks of the Dow Jones Industrial
Average. The results are remarkable. If a person invested according to the Dogs
of the Dow strategy since 1973, their overall return would be 20.9%.
You can read the entire
piece on the Dogs of the Dow here: to learn the strategy and learn
further about Small Dogs of the Dow and Pigs of the Dow.
Whether you buy long or
sell short, or whether you invest for the long-term or trade quickly for a
short-term gain, focus on the prize and enjoy those little gifts that seem to
fall from the sky…. The dividend payments.
Many Happy Returns,
Rachel
