Earning an Extra Income

Our mission in writing Contrarian Ripple Trading was very simple. We wanted to outline a method of short-term stock trading with which regular, middle class families across America could earn an extra income over and above what they earn from their day jobs.

Our approach is low-risk as we focus on the trading of stocks of well-known, large-capitalization companies – the kind that have been around for a long time, are stable and also pay out reasonable dividends. It is this low-risk approach combined with the power of contrarian thinking that makes contrarian ripple trading such a successful, yet very easy technique.

In order to prove just how successful it has been for us, we did something in our book that we have not seen before from other writers of investing/trading books. We provided a complete record of all our trades from January 1, 2005 through February 28, 2007, a closing date dictated by publishing guidelines. So how did we do? In this 26-month period the Dow Jones Industrial Average had an average annualized increase of 6.4%. Our trading profits alone – not including dividends nor interest received on cash balances – and net of all brokerage commissions paid, returned to us 11.6% annualized. With this result, we can quite comfortably claim to have “beaten the market.” How many profitable trades did we make in the 26 month period? 1,225 profitable, closed, roundtrip trades. How many loss-making roundtrip trades? Zero – yes zero! Our book explains how that is possible.