7 Habits of a Highly Successful Trader PDF book.
Recent successful trades since 2013 and past 20 trades
Possible losses -40%+
Average trade length:
Winning trades: 7-10 months.
Losing trades 1-3 months.
You are probably looking at about 5-10 opportunities per year. All equal.
F.A.Q. email me a question i put up here weekly (if it is worth it)
Q) What indicators do you use?
A) NONE. Pure price volume and key fundamentals. 99.99% of T.A. is a complete waste of time. It’s purely backwards looking. Do not waste your time.
Q) What scanner and charting do you use?
A) Pre 2008 i used to have my own. Custom made at a huge expense. The MAIN PROBLEM WAS DEALING WITH DATA AND SOFTWARE PROBLEMS. A Constant pain. To be fair in 2000 when I created my own stock tables it was leading edge but they were overtaken. It wasn’t worth the effort. Now i use Stock fetcher.com (One basic scan), Bigcharts to see the chart. and YHOO finance to scan key fundamentals…for about $8 per month. That’s all you need.
Q) How long does it take to manage?
A) Once a week is more than enough. Possibly once every 2 weeks. Do not waste your time watching intra day/daily.
Q) Why 100% gains? Why not 200%,300%?
A) I tried 200% gains 2009-2015. The accuracy was not as high and it took a lot longer to get there. When i reduced the target down to 100% the accuracy shot up and the time frame shot down. It works out better. Plus, I always say leave about 5-10% in the stock with a wide stop loss and see where it goes. BIG trends do happen but they are not very common. The longer you stay in the more chance you have of being in when it ends. Look at AAOI. Luckily we got out a month or so before its collapse.
You can go for 90%+ probabilities of hitting the 100% gains and moving on….or try for 200,300%+ gains with less probability and more time.
Q) What happens during bear markets?
A) You will not find any new stocks. Hopefully the stocks you were in before the market topped you have exited with profits.IF you are still in those stocks will fall off. By how much depends on what kind of bear market we are in. 2001-03 I went over 18 months with no new trade. 2008 another year of no trades. It happens.
Q) Why is there no video content, stories, blogs, articles like other sites?
A) Oh dear. I hope the kind of people I attract are a little more savvy than this. I am never interested in predicting. It is pointless. Some blogs/site love to spout “theories” about stocks/markets all the time. Sometimes they are right but if you toss a coin you have to be either right or wrong. Same with predicting. I never need any opinion to enter a trade. Why? All those hyped up story stocks are just that. There is a lot of “pump and dump ” even at the higher end of the market going on. Dressed up as P.R. or media stories. It’s strange how if an operation does it with a penny stock it is illegal but if a huge investment bank does it vie news, P.R. it is fine.
I am very anti hype. There is no need for it. Run the scans if a trade shows up get in and get out, move on. No need for anything more. Sadly, most U.S. citizens seem addicted to it.
Q) Why no chart patterns?
A) Short answer. They are a complete waste of time.
Q) Why 4 consecutive trades?
A) You need an end game an exit point. Do the math your-self. 4X 100% compounded returns. That’s a possibility. Not a certainty. Any exit plan needs time. If you started a business with an exit plan (to sell it or go public) you would always be looking at 5-7 years. You cannot build something up in one year. You can roll into 3 trades, 5 trades, that’s 100% up to you. I’d like to see if you could stick to your plan if you hit 3+ successive winners. The temptation to take profits off the table would be huge. Also, at the other end of the scale if your first trade was a loss it would be interesting to see if you would carry on or dump the system.
Most decent systems are profitable over the long run. Where most go wrong is not following them. That can’t be bought or taught.
Q) “My god….trading one stock is so high risk it is a sure method to lose everything?”
A) Partly agree. Trading one stock is high risk in that you could “in theory” lose 40% on that one trade. So you can only trade with risk money this way. Let’s say you have a net-worth of $2,000,000 a rule of thumb is risk no more than 2.5% of your net-worth in one trade. $50,000 in this case. IF the very worse thing happened you have $20,000 losses. Which on the scale of your total net-worth isn’t going to mean you are out on the street. Disappointing for sure but not the end of the world.
If you trade one stock you have to realize it is high risk. Even if the system was 99.9% accurate it would still be classed as high risk so you trade with money you can afford to lose 40% of with no sweat.
On the other hand there is no other way you can possibly reach 1,000%+ gains.
If it safety you only want then put your money in an index fund and be done with it. There are many of those and they perform better than most Hedge Funds that charge huge fees.
You simply have to look at the odds and see whether it is worth rolling the dice. Never rely on it. It’s something that should work in the background. Maybe it comes off maybe it doesn’t but don’t sit there waiting for it to come off. It takes only 10 minutes a week to manage. So there is no need to spend time on it/ in it.
The way I view trading one stock at a time is not as an investment but as starting a new business. It’s high risk…even if you do all the pre-planning and D.D. in the world, even if you have a huge edge in a new industry..it’s risky. BUT the odds are in your favour and you have the potential for a huge pay off. And that’s about all I can offer.
If you want to take no risks…this is not for you. (I do not know of any investment/business that offers NO RISK. There is no such thing.)
Q) I am not trying to work your system out but can you explain “…………………………………………”, “……………………………………..”
A) No. That is exactly what you are trying to do. Stop wasting time.
Q)Does it work on other stock markets?
A)NO. U.S. only. I wouldn’t waste my time on any other stock market. That’s where the money flow/ volatility is. Indian, South African, Even UK stock markets are no-where near the U.S. stock market.
Q) I have emailed you numerous times with no reply.
A) If the question is not on my site I add and answer from my site.
IF the question is already answered but you cannot be bothered to read it then we aren’t a match. No way you’ll stick to it never mind understand it.
I only personally answer emails from clients. The days of me bending over backwards to aid “copycats” are over.
Q) How long have you been in business operating this site?
A) 1999. Registered the site in June 2000 I think. Check up if you want.
Q)My broker says “…”My asset manager says “…..” My financial adviser says “….”
A) Look I could say a lot about certain industries and advisers. Just remember, how do they actually make their money? Salesman are always going to push their products to you and talk you off everything else. Any way I said trading one stock is risky. But the key is to manage that risk and expectation.
A stock broker gets it from pushing stocks to clients and getting clients to trade more often.
Advisers can only recommend products they actually get paid from. Unless he is 100% independent and paid by the client. All others will only recommend products they are getting paid from. So do they always serve what is really best for the client?
I never need a broker to tell me anything. They have no crystal ball. Unless they are privy to illegal insider information it’s simply their opinion.
I am sure there are many good ones out there i am just saying do you need to be told what to do? Are you sure it’s your best option? Your choice.
BUY a hard copy of the system rules for $3,000 contact me
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