The 15-minutes-of-work-a-year trading method

So what is the 15 minutes of work a year method (of financial trading) and is it really only 15 minutes a year and how much would you make? Well, 15 minutes is approximate. Obligatory minutes may add up to dozens, even hundreds, in a year or that sort of period. As for the sort of money, well that too depends on the year. So what is it? How does it work? Why should you choose it immediately over other methods? In a nutshell: let's say you want to trade using only very very small amounts of money. Well, let's say you start by investing 200 pounds each month on the stock market. So each month this is what I'd do in your shoes:

  • I'd use a spread betting site, a 'daily funded trade' for a ftse 100 share or other ftse share.

  • With a 200 pound budget I'd pick a share worth anywhere from 150 to 300 in its price.

  • I'd place a 'buy' trade for 50p a point with neither a stop nor a limit. With 200 pounds in the account, if that share dropped to zero the loss would be the price divided by 2, so if it were 150, that'd be 75 pounds lost, if 300 then 150 pounds lost.

  • Then I'd calculate what 120% of the starting price (which I'd bought at) would be and set an alert (which would inform me on my mobile phone on whatever day the price finally reaches that level).

  • When the price does reach that level then I would add a stop order at 110% of the original price, either by placing an order to sell if it reached that price or, more likely, particularly with the top 100 ftse companies, a guaranteed stop order at that price level.

  • Now - let's say one of these shares I trade on takes a while to close, more than a few months - what does that mean? Well the daily funding for the shares traded at those prices at 50p a point is 1p a day. So if your profit is going to be 16 pounds, as with say a share you buy at 320, with 50p a point, going for a minimum 10% profit, would take over 4 years before it had spent the same amount on daily funding as it would make in minimum profit when closed. That's a long time. Most of your trades should close well inside the time required for generating some profit.

  • If you have 500 to 1000 pounds you'd obviously pick about 5 shares and do the above with them all. They should be diverse, across as many business areas as possible, as unrelated to each other as possible (this is called pooling). That way if a particular industry goes down for a while, it is unlikely to impact more than a fraction of your 'portfolio'.

  • Once any of them crosses 120% and you have moved the stop to 110% you set a new alert to tell you when it gets to 130%, 140%, 150% etc - and each time it does you move the stop up a further 10% in relation to the original price, ie when the price is 120% your stop is 110%, when the price is 130% your stop is 120%, when the price is 130% the stop is 120%, etc

  • Each month you can, put another 200 pounds in and open another buy trade, just keep adding them. The ones which win will close at various points and you should replace them with new trades on appropriate shares the moment that happens.

  • You'll never or almost never close a trade at a loss, but some trades may well hang around open for over a year, over two years even. Fortunately others will not, so you ought to be able to keep a flow of new trades coming and going most of the time - meaning that they all close, each of them, at a profit, which gradually accumulates.

  • After the first few months of doing this you are likely to be very pleased with the result and to appreciate from experience why this is a handy longterm method.

  • At the same time you may want to allocate some funds to an appropriate 'hedge' trade to cover the event of a major crash - eg I have found a derivative of the silver price with a low enough entry price for me to have a single 'buy' trade on that silver derivative which I can allow to just sit there indefinitely and in the event that the market or markets suddenly crash hugely it is fairly likely that the silver price will start to rise up or even rocket upwards. Of course you may find a better way to hedge than that, perhaps with physical gold or physical silver.

  • Clear proof

    So let's give you loads of proof of this, let's show you examples until the cows come home - real examples which will show you that it works and show you how to go and do your own tests if you want to really prove to yourself beyond all reasonable doubt that an objective analysis proves my method works.

    [prose being composed right now]

    Let's pick a random date then - March 17th 2016. So now let's hunt around and see what companies' prices would have triggered me to trade on that day and then we can see what the results would have been:

    Warning: this is not trading advice; the predictions given are the opinions of the author; the risky burden of attempting to copy those trades but failing due to erroneous behaviour is entirely on your shoulders; be aware that if you trade on financial markets, for example using financial spread betting tools, prices go both ways, losses can be heavy, particularly if you do not pay attention to what you're doing and fail to completely understand the platform and its characteristics properly; seek professional advice if you are a beginner looking to learn how to use such tools; also be aware that a very high percentage of users of such sites are alleged to lose in the longterm; also note that this distribution of success reflects to some extent the broader reality of the financial markets, particularly across a 'long' period of time such as one or two decades.