How to buy stocks, know when to buy and sell, and game the economy and GDP

Stock trading can be intimidating and seem like an impossible game where all you can do is lose. Not so. Sure, you win some and lose some, but follow these rules and you will win more than you lose by gaming the economy and riding the cycles of GDP and Fed interest rates. You will make money and learn that stocks really can be conquered

Instructions

Difficulty: Challenging

1. When GDP is on the decline, wait until it reaches 2% quarterly growth. At this point, buy high multiple tech stocks such as Google, Yahoo, and Ebay. A high multiple stock refers to how much a stock is valued. A higher multiple means that the earnings of the stock are valued more. It is found by dividing the total earnings of stock by the earnings per share of a stock.
2. At 1%, buy bank and financial stocks.
3. Between 1% and 0% growth, the Federal Reserve starts to lower interest rates to stimulate the economy. At this point you should be buying retailers like Walmart and Target. You should also be buying housing and auto stocks.
4. When the economy hits its lowest point, around -1% growth, you should buy low multiple tech stocks like IBM and INTC. This is the also the point where the FED goes through the last of its credit easing campaigns.
5. Once the economy gets back to 1% growth, the FED should be neutral on interest rates. This is when you should buy paper and chemical stocks like IP, DOW, and DD.
6. At 2% GDP growth, sell medicine and supermarket stocks like Proctor and Gamble, KMB, and MRK.
7. Once the economy gets up to 3% growth, you should be buying "smokestack" stocks like MMM, DE, and IR. This is also the point where the Fed starts to tighten rates.
8. At 4% GDP growth, you should be selling financial, housing, retailers, and auto stocks that you bought when the economy was declining. This phase should be marked by a second FED credit tightening.
9. Between 4-5%, you should buy metal and mineral stocks.
10. After the economic peak at around 4-5%, you should start selling paper and chemical stocks. Between 4 and 3% GDP as the economy starts to decline again, buy up medicine and supermarket stocks because they are stable during a recession. at 2-3%, sell the smokestack stocks.
11. The cycle starts again.

Tips & Warnings

• Always do your own independent research before buying a stock. Don't trust marketed research tools.
• Please remember that this is just a general outline of what you should be doing in relation to the economic cycle. By no means should you think that this alone will make you successful. You still need to do your own research and look into other resources for more in-depth information on successful stock trading. I also take no responsibility if you lose money by following my article to the letter.