Thursday, 11 September 2008

THE BOA CONSTRICTOR STRATEGY

Okay here we go......
To make money from this present situation, you will need some huge dough and hard balls. I have been studying the Boa constrictor! Don’t ask me what I was looking for in the zoo, but to me, some answers lie in the animal kingdom, since its humans thinking like that who make rules for the market and expect sane people to understand same.

The Boa Constrictor strategy.
I watched in horror as the Boa constrictor was fed one live goat. It entwined itself on the poor goat and started to squeeze... As the goat tries to breathe, the Boa squeezes more...and more, and more until the goat died, that’s when the Boa slowly started 'eating'

With some fairly large amount of money, discipline and patience (this could take some time) you can strike the perfect ambush for this market.

Choose one 'sound' stock e.g. DSR, FBN, NB, Unic etc and start buying down. Buy the first small tranche (break the money into hundred and buy only 1%. As these prices are falling (breathing) you will be constricting (buying) more. This should continue for as long as the fall continues. It looks like NCA, but its different cause you will be ready to get off if the fall reverses and sell to hold cash and wait for another period of madness.

This strategy works for both short and long terms. While short timers can sell as soon as they see 20% or more after commisions, long timers can stop buying immediately the price starts to move up. Take your rest and keep the money resting until the market gets crazy again, then you can step right in and resume the squeeze.

1 comment:

Folabi said...

Very commonsensical idea, but makes sense none the less.

I think I'll start doing this for myslef now.

Thanks man.