It's Easy to Make Money on the Upside

Most buy and sell combinations on the price upside are profitable and most combinations on the downside are not. To illustrate the winning and losing ways of the upside and downside consider General Electric, the large conglomerate, from January 2, 1996 through February 13, 2003. The price upside yielded 96% profitable (winners) buy and sell combinations while the downside resulted in only 9.97% winners.

These winning percentages, which are typical of any upside and downside price pattern, make it easy to understand why you want to buy and sell on the upside and avoid the downside. On the upside the chances of making money are around nine out of ten. But on the downside, your chances fall to only one in ten.

Posted May 15, 2006.