"Bulls make money, bears make money, but pigs get slaughtered"

I spent 20 years as a floor supervisor in Las Vegas casinos where I never once witnessed the outright cheating and manipulation that I see every day in the markets. Cheap crooks in expensive suits like Russell Wasendorf Sr., Scott W. Rothstein and Bernard L. Madoff were believed to be generous men. It's really easy to be generous with other peoples life savings. The only difference between these three and hundreds of others in this money pool, is they simply grew tried of playing the game, and made it easy for the powers to be to convict them. Otherwise, they'd still be at it. So I resorted to a simple stock market system that has served me well since 2002.

• Why am I sharing this system? Because I enjoy doing so.

• There's always some stress associated with investing.

If time proven and free doesn't do it for you, then nothing will. Whatever you like to call yourself, investor, saver, stockholder or shareholder, this stock market system just might be your cup of tea. I've been buying and selling stocks using this simple 8^th grade system now for years, and while I haven't been invited to Bill Gates and Warren Buffet's bridge club, I have been able to take two 15-30 days cruises each year and crisscross this country in our RV on profits made picking up the change on the floor of the NYSE.

Enough! Here is all you'll need to know to beat the crooks who hang out on Wall Street.

1. Capital: $500 minimum. I stared out with $10,000. Balance as of 1/5/2013 is $147,009.00 (Scottrade).

2. I'm happy with a 12% profit on my investments. If you're not, stop reading. You're wasting your time here.

3. Set up two portfolios (dividends and non-dividends) on Goggle, Yahoo or wherever.

4. I buy long when a stock is midway between its yearly high and low or below the midway point. Then I add a $1.20 to the purchase price and put it up for sale.

5. I sell short at the yearly high. Then I subtract a $1.20 from the purchase price and put it up for sale (buy to cover). Remember, if you sell short, you pay the dividends. If the stock splits, you could be in trouble.

6. I have a little hedge system I use if I sell a stock short and the herd stampedes and runs it up. If this happens, I buy it long when it goes $2 above the price I shorted it at. Then I wait hoping the bulls run with it all the way to Madrid. On arrival in Madrid, I sell the long, and Mrs. Short and I cuddle up and cheer as the matador drives the sword deep into the bull. Oh, did I mention that with my hedge, you are hedging the dividend as well?

7. Like a hawk I watch for stocks to drop $5 or more within a few hours because the company missed some analyst's prediction, or someone with a huge ulterior motive like this Bill Ackman run their mouth hoping to stampede the herd. These are Godsend events. This Ackman, who had sold HLF short, popped off and the stock dropped like a rock. I bought it with both hands at a third of what it was worth. I've now sold all of it but 100 shares which I'll most likely sell on January 7th. This one deal will send me off on a Princess cruise come April for 28days.

8. Stick with quality stocks. That's a stock that has made you money time and time again. It'll take you several months of playing the game to find your quality stocks.

9. Stay away from the "pink sheet stocks" there's a reason they're there and it's not a good one.

   Should you have the desire to learn all the tricks management uses to cook the books in order to meet expectations, and operate your own one-man hedge fund, I suggest you obtain a copy of What's Behind The Numbers by Del Vecchio and Jacobs.

   Allow me to give you one example from this most informative book. I've always looked at stock buybacks and extra cash dividends as being a good thing. Not once did I check to see if this was being done with borrowed money. To do so in a bear market, when the stock is selling at a huge discount, could possibly make sense; but to do so in a bull market means this company is being run by people with the morals of those in Congress. A perfect example of an outstanding company being run into the ground by degenerates biting the hand that was feeding and keeping them in a manner they did not deserve is HPQ. The facts are investors are just as greedy as the executives and welcome upticks with open arms regardless of how they are generated. It's only after the party is over and they're left with a loser that speculators care. As a day trader and one who sells these companies with a history of lying (creative accounting) short, I consider it's the perfect justice.

   Disclaimer: Bob Miller is a registered day trader (Scottrade). He is not registered as a stock broker or investment advisors in any jurisdiction whatsoever. A person should never invest in any stocks unless they can afford to lose their entire investment. Investing in "stocks" is highly speculative. It's super risky, but Bob loves it.