Price Upsides Produce Profits
Three price upside examples show why the upside is so profitable.
Ten-Year Upside Produces 93 Percent Winners
Danaher (DHR), a large conglomerate that manufactures and markets industrial and consumer products, is on a long-term price upside.
From January 2, 1997 through February 12, 2007 DHR has completed 3,219,453 daily close buy and sell combinations of which 92.30 percent made money. Both short-term traders and buy-and-hold investors have made lots of money with this stock.
Six-Year Upside Produces 93 Percent Winners
A prolonged upside produces a very high percentage of profitable investments as seen with Caremark Rx (CMX), a pharmaceutical services provider For the 1,500,778 buy and sell combinations from May 13, 2000 through February 9, 2007, 1,399,719 (93.27 percent) made money. Even purchases at local highs were profitable, if they were held long enough.
The unprofitable investments occurred for investments bought at local highs and then sold within a few days, weeks or months.
Steep Upside Results In 96 Percent Winners
Hansen Natural (HANS), a maker of natural beverages, provided investors with many profitable entry points on its price upside that lasted from January 2, 2004 through May 10, 2006. For the 200,028 upside buy and sell combinations, 192,672 (96.32 percent) made money.
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