This stock system works for the small investor as well as it does for investment groups who buy ten thousand shares. It’s a simple mathematical system that works exactly the same way every time. There is no system I know of that offers the protection against cheap crooks in expensive suits like my FreeStockSystem™. This system forces the investor to take short-term profits. Since the shares held for long-term profits are FREE, loses are confined to potential profit, not investment capital.

The FreeStockSystem™ spread worldwide in less than two years. What really pleases me is the fact that investors are finding ways to personalize it and improve it.

This system is as simple as 1, 2, 3.

1. Stock ABC is selling for $1.00 a share. For this example, let's buy 1,000 shares. That's $1 X 1,000 shares = $1,000 plus commission (I use Scottrade® for two reasons: $7 per transaction & excellent service). Therefore, stock ABC cost us $1,007.00 or $1.07 a share. Commissions are higher on foreign stock, stocks under a dollar, and broker-assisted transactions.

2. Our goal is to sell 900 shares of this stock for the total amount invested, including the sell commission. I immediately place an "All or None" limit sell order for 900 shares. Limit orders cost $12 + ˝% of principal. I simply double the estimated commission fee for selling.

3. We now have ABC listed to sell automatically at a $1.16.  That's $1,007 + $34 (estimated fee for selling X 2) = $1041.00 ¸ 900 = $1.16. The moment this stock sells, we have recovered our entire investment plus a few extra dollars of cash profit, and we have 100 shares of ABC “free”. The fastest turnaround time to date has been 35 minutes. Some investors tell me that they buy 3,000 shares and sell 2,700. This system can accommodate the 100 shares buyer just as it can the 100,000 shares buyer. Keep it apples for apples and it will work the same way for both the small and large investor.

An actual buy and sell: I bought 1,000 shares of SWC on 03/18/03 - Total cost $2,612.00 - Sold 900 shares on 03/20/03 for $2,624.92 - Return on investment: One hundred "free" shares of this stock and $12.92 cash.

A perfect example of the types of stocks best suited for my  FreeStockSystem™ is INFS. Volatility is a key factor to consider. The higher the better.

Based on emails I've received, this system works well for individual investors as well as couples or investment clubs.

Some of the questions I've been asked include, "What happens if the stock goes down?" and "What are the advantages of the system other than getting 100 shares free?" and "What do you do with the free shares?" The #1 question since posting my FreeStockSystem™, "Why are you sharing this information?"

• If a stock drops 80%, in late-December I sell it and take the write-off.
• This system has several advantages. It allows me to keep a small amount of capital working in many different stocks and sectors. It also helps develop an in-depth knowledge about a stock's tendencies. I have gotten to know the daily movements of certain stocks and can buy and sell them again and again with confidence.
• I do not lock the free shares away in a chest. If a stock reaches ten times what I paid for it, I'll sell it in hopes of buying it back at a lower price. This limits the upside, but in my opinion, it's like the old saying, "A bird in the hand is worth two in a bush."
• Why am I sharing this system? Because I enjoy doing so.
• There's always some stress associated with investing.