Day trading for those who hate to lose.

Successful day trading means never being locked out of the market by overwhelming losses. Our ThinkingShorter day trading strategy is driven by one absolute rule – never lose more than 1% of the purchase price of any one stock.

Over 26 years of back-testing, our PRELIMINARY results...
  • Show annual gains ranging from 3% to 48%.
  • Beat the S&P 500 average annual return over 26 years.
  • Made money in 239 of 312 monthly trading periods.
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vs. S&P 500

Annual TS Performance vs. S&P 500 Index Performance (1995-2020)

Dollar Value - Strategy
Dollar Value - S&P

A pragmatic

Just like the S&P 500, think of the NASDAQ as a filter. Day trade ONLY those stocks with extraordinary price appreciation over a short period of time (the “High Flyers”), and prevent losses using stringent stop-loss orders. After the stop-loss orders are triggered, virtually all of the remaining stocks have some level of gain.

1 Buy the High Flyers

At the beginning of each month, our algorithm analyzes all NASDAQ stocks and identifies the ones that are exhibiting high volatility and extraordinary price increases over the preceding 60-90 days. Purchase all of them in equal dollar amounts.

2 Protect Yourself

Add stop-loss orders for each position equal to 1% of the stock purchase price to minimize your losses. For example, if you invested $100,000, and stop-loss orders were triggered on all positions, the loss would be limited to $1,000.

3 Don’t Be Greedy

During the month, sell stocks when they hit a percentage gain predetermined by our algorithm. In our analysis, it’s just not worth hanging onto a stock beyond this price point.

4 Close Out Your Portfolio

At the end of each month, take the rest of your gains by selling all the stocks that remain in your portfolio (which were not already sold via stop-loss or stop-gain orders).

5 Repeat Every Month

Put aside your gains (or tiny losses), and repeat the same steps at the start of the next month. In any given month, invest as much or as little as you want – although our back-testing is based on investing a consistent dollar amount across all monthly trading periods.

Let’s drill down a little further.

Best, Average, and Worst
Monthly Performance

Our projected average monthly gain of 2.5% results in a 29.6% average annual gain: better than the S&P 500 over that same tested period.

However, our projected performance is not positive every month. In fact, on average, 23+% of all months in every year are “losers” but the actual amount of losses are very small. Remember, in any given month, our stop-loss regimen limits our losses to 1% of the value of our original purchase recommendations.

Remember: Stop-loss orders are not perfect. See our FAQ on this point.

Best, Average and Worst
Annual Performance

Our strategy projects average annual positive performance every year over twenty-six years. Our range of annual projected performance over that period was 3% - 48% per year.

And, our performance does not beat the S&P 500 every year. There were six years out of twenty-six in which the S&P 500 did better (i.e., 1997, 2009, 2012, 2014, 2017, and 2019).

One Last Thing: We think we can do better. Over the next few months, we'll be publishing performance histories that integrate improvements in our analytics. Stay tuned.

ThinkingLonger is a publisher and is not a registered investment advisor or a broker-dealer. Most importantly, we are not YOUR investment advisor, and we do not offer personal financial advice. But, we will give you the SEC warning anyway:

Past performance does not necessarily predict future results.

We agree with this statement as to individual stocks. But, our research tells us that there are consistent trends over extended periods of time in aggregates of stocks that can be used to guide investing decisions.