Ordinary Trader Turned $700k to $41 Million In 3 Years

Mr. Burns inspired me as virtual trader but Karen has blown me way with what she did in actual trading. Karen went from her day-job as a CFO to an option trader and made 50% profit on $100,000 in  2007. Later she turned $700,000 into $41 million by 2011. This is her story, as told by Karen herself with Tom Sosnoff on Tastytrade.

She took about five years to educated her self about trading. She attended several trading seminars and workshops at that time. During those years she paper traded, practiced her strategies and learned from her mistakes. Her confidence level rose to the level where she thought she could make a living trading. She then took her funds from her broker and invested and managed her own money. In the first year she made 50% profit. Later her previous broker called her to manage his money.

In her own words in summary - "It took hard work and being discipline and the controlling of your emotions."

This video of 24:55 minutes is a must watch!

I can hear the doubters. Well she used options. It can't be done trading stocks. And I can also hear the excuses... This documentary is very good because it shows that there are tremendous possibilities in the markets. What anyone who watches this video, who are interested in charting their own future need to do is to choose the vehicle they are comfortable with and do what is necessary to accomplish their goal.

As you may know by now, I have a plan to be financially successful in the market by trading stocks. Without even knowing about Karen, I see many similarities in her story and my experiences. I am currently near to the end of the practicing stage of my plan. As a result, I will be updating this blog to document my progress as a I take this journey from a day job to a successful trader - from virtual to reality!

You can do it!

I can do it!

Part II - Tips on Making Money Trading Like a Pro

This video shows a simple entry and exit method for swing traders. This strategy can be used in day trading. 5 minute candle will be used instead of daily candles.

Continuing from Part I...

Introduction
The greatest thing about virtual trading is that you cannot loose any money. It is a good place to develop and practice your trading skills and master your craft. To do so tips are very useful. Compare the "10 Golden Trading Rules" in the video in Part I with the tips shared in this blog and make your choice based on your style or method of trading.

Tips 6 - 10

Tip 6. Select or develop an entry and exit strategy which must include stop loss. The chart formations in the previous link can be used in any type of trading. Take your profits, you may reenter a trade if need be. You can't go broke taking profits. But, greedy pigs get fat first and are then slaughtered. There are many trading systems, but you have to choose one you are comfortable with according to your risk tolerance. To succeed in a system you must follow it 100%, and be consistent. Document and learn from your mistakes. You do not have to win a virtual competition to be a successful trader, but use it to help you get better at trading.

Tip 7. You need time to trade. The best time are from 9:35 am to 10:35+ am; and from 2:45 pm to 3:45+ pm. The “+” sign means you are in a trade that is working for you. A few stocks at 9:00 am and after 3:45 pm may explode or gap up or gap down. Sometimes, during the middle period of the day a few stocks may also drop like a rock or go up like a rocket. If you can catch any of these at the right time you will make huge profits in a very, very short time.

Tip 8. Every expert trader needs a reliable scanner or some other method to prepare a list of stocks to trade. A good scanner will inform you about stocks that fit your trading criteria. To get a quick list of stocks to trade, visit the profile of the leading traders in this month official competition at howthemarketworks.com. Create a watch list with these stock symbols and monitor them daily.

Tip 9. Another day trader suggestion is to be focused like a laser beam. Trade only one stock at a time. Buy long or sell short the maximum amount of shares as per your capital balance (in reality trade the maximum according to your brokerage commission/volume agreement). Once you understands the movement of a particular stock you may be able to buy long and sell short this stock at the appropriate time. You will be able to make profitable trades better than 70% of the time if you are aggressive and almost 90% if you are conservative.

Tip 10. Some traders say you need to know the the market sentiment, but I say you need to know the psychology of the trade and what the indicators represent. Obviously, as a new trader if you select a stock to buy long and the market is going up at that time you will have a good chance of making a profitable trade; and vice versa if you sell short. However, as a you get good at this, you will be able to buy long even on a day when the market is down. For example, in my $5,000 virtual portfolio, New 1 Percenters-Jan I only did a few short trades on the 31st of the month and I won that contest with huge gains. In that month I made at least one trade every day.

Finally, if you are a new trader and you move from being a long term or swing trader to a day trader and you implement the above tips you will have a good chance to increase your profits. Also, even if you are an experienced trader, you can use the above to help fine tune your trading and be more efficient in your trading, and be good enough to compete with Mr. Burns in the virtual competition. If you have any difficulties with any of the trading terms used; feel free to research the terms at www.investopedia.com or in Google type for example - “define: scalper” without the quotation marks.

All the best in your trading!

Caution
According to the Federal Trade Commission, 'How-To' Products Promise Extravagant Profits, Few Risks, While North American Securities Administrators Association Says 70% of Day Traders Lose Money. Please visit the FTC at the link above. The information provided on this site is for educational purposes only and does not give trading, investment, tax, or legal advice. The information presented here is not specific to any individual's personal circumstances. Because of the nature of financial leverage and the rapid returns that are possible, day trading can be either extremely profitable or extremely unprofitable, and high-risk profile traders can generate either huge percentage returns or huge percentage losses. Anyone who chooses to use the information here in real trading does so at their own risk and will be responsible for their gains as well as their losses.

Part I - Tips on Making Money Trading Like a Pro

10 Golden Rules of Trading explained by former floor trader, retired hedge manager and President of INO.com, Adam Hewison.

Introduction

The greatest thing about virtual trading is that you cannot loose any money. It is a good place to develop and practice your trading skills and master your craft. To do so tips are very useful. Compare the 10 Golden Trading Rules in the video above with the tips shared in this blog and make your choice based on your style or method of trading.

Recently, there are a few people who have influenced me and made a lasting impact. They include: Nick Vujicic – Life without Limbs; Brian Tracy – Personal Development; and Mr. Burns – one of the most skillful virtual day trader on howthemarketworks.com.  In this article, I will share some trading secrets to help new traders. The information will also help the experienced trader to step up his/her trading to another level.

Long Term Investors vs. Day Traders/Scalpers
Long term investors can’t compete with Mr. Burns. Mr. Burns is an exceptionally highly skilled day trader, paper trading on howthemarketworks.com. He can trade the same stock an investor has in his portfolio and Mr. Burns will take out profits and exit while the investor is waiting for the stock to accumulate more profit. With his increased capital (initial capital + profit) Mr. Burns will make even more money shorting the same stock on the down side while the investor is still waiting for the stock to rebound .

A swing trader does not have a chance either. He will get the same treatment if or when he holds his position for a day or more.

Day Traders/Scalpers
A day trader has a chance to compete with Mr. Burns. A day trader holds his positions for less than a day and if skilled, may be able to compete. However, I believe that Mr. Burns has the uncanny ability to detect when a stock is going to gap up or gap down and he enters his trades before the events occur. Therefore, making huge profits in a short period of time.

Then, there is another group of traders that howthemarketworks.com does not account for. These traders are called 'scalpers'. I believe that Mr. Barns is an extremely advance scalper/day trader. On the site, he has two portfolios of which he is in first place in each portfolio. He also trades a few days in each portfolio and then rides off into the sunset, may be playing golf or making real money.

I can be categorized as a scalper. But, I refer to myself as a 'Momentum Minute Trader' tm. I trade from 1 – 25+ minutes per trade. I work full-time, so my time to trade is very limited. However, Mr. Burns by his performance has inspired me to step up my trading and I made huge profits in one day virtually trading one stock. I hope that every trader who reads this article will refer to themselves from now on as a 'money making trader' instead of a long term investor, a value investor, a swing trader or a day trader etc. Meaning, that they will become whatever trader that is necessary that will help them make money.

For new traders to increase their profits; and for experienced traders to step up their trading they need to implement the following tips. These may give them an opportunity to compete with Mr. Burns; but most importantly, make them better traders.

Trading Tips 1 - 5
Tip 1. Every trader must have a trading plan and task/strategies to implement in order to accomplish their goals.

Tip 2. A day trader/scalper has the best opportunity to make serious money in this market environment. However, stock market trading can be highly risky. A trader must be proficient in shorting. In shorting, you could make just as much or more as in buying long.

Tip 3. Trade the lower-priced stocks with large 90-day average volume, 500,000 or more. Buy long or sell short the maximum amount of shares as per your available balance. This will give you the biggest bang for your buck and avoids slippage when you enter and exit a trade. However, in comparing two stocks look at the increment on each chart. Let’s say one chart shows $5.21, 5.22, 5.23 etc.; and the other chart shows $7.71, 7.81, 7.91 etc.; then you are better off trading the $7.71 stock. To simulate real trading stay within the commission/volume range of your brokerage account.

Tip 4. Trade the most volatile stocks with the largest price ranges. This gives you an opportunity to make a lot of money quickly, your potential to loose also increases. Disregard news, stock tips, fundamentals etc. Just focus on the stock charts. Charts reveal all you need to know about a stock in order to make money. Could you imagine traders chatting about AAPl, $457 and GOOG, $754? I traded virtually KERX, $8.49 a few days ago and made huge one day profits when my portfolio balance was about $50,000. I traded virtually RIMM, $13.78 for part of the day and made very large profits also – need I say more?

Tip 5. Become a pro by practicing and know the movement of Exchange-Traded Funds, ETF’s. Some ETF’s goes up when the market goes up and goes down while the market is going down; example: XIV. Other Contra-ETF’s goes up during the time the market is going down and goes down when the market goes up; example UVXY.

Continued on Part II...

Caution
According to the Federal Trade Commission, 'How-To' Products Promise Extravagant Profits, Few Risks, While North American Securities Administrators Association Says 70% of Day Traders Lose Money. Please visit the FTC at the link above. The information provided on this site is for educational purposes only and does not give trading, investment, tax, or legal advice. The information presented here is not specific to any individual's personal circumstances. Because of the nature of financial leverage and the rapid returns that are possible, day trading can be either extremely profitable or extremely unprofitable, and high-risk profile traders can generate either huge percentage returns or huge percentage losses. Anyone who chooses to use the information here in real trading does so at their own risk and will be responsible for their gains as well as their losses.

Money Answers All Things… Meeting Most of Your Needs

The above video presentation outlines very well the high risk that is involved in trading the markets. However, if you can establish your risk tolerance and manage it you could be on your way to a coveted position, becoming financially independent.

Introduction

Most people can do with some extra money.  If you were to have just one financial goal in life it should be to make new money. If that is the case, then you will realized that that goal will answer most of your other financial goals. Some people do overtime, some take on another job, some may use their skills in an entrepreneurial fashion. However, all the previous options to make more money require a considerable amount of time to satisfy a new boss or new clients. 

Another avenue one may use is to acquire the skill of trading in the stock market. The opportunities that are available in these markets are overlooked because they are misunderstood and miss used. Even though there is the possibility for huge losses, this normally would occur when there is a lack of proper planning, execution and greed. Nevertheless, a very small percentage of our society who  are disciplined, mastered the planning and execution of strategies in the financial markets are the ones who are not in poverty in a society of abundant wealth.

The Intent

My intent in this blog is to provide information on how to use virtual trading sites as a training ground before getting into real investing or trading in a real account. With the easy access to computers and the Internet anyone who wants to do so can develop the skill in due time and become a successful trader.  Notwithstanding, that everything is not for everybody; individuals may chose their trading style based on their risk tolerance and accomplish their financial goals using the stock market as a vehicle to do so.

There are many established norms and assumptions associated with the stock market and trading it makes you wonder if these were set up deliberately or became self-fulfilling prophesies. Nevertheless, in this journey of practicing in a game and implementing strategies learned in reality isn't something new. It is used in other industries and could be applied in the stock market. There are other markets that provide the opportunity of trading but this blog will be focusing on trading stocks.

This blog will be addressing the major concerns that are associated with trading. We will see how to minimize them. I will share alternative view points to what most people accept as established fact. I will also, in a synergistic form put together various principles from unrelated disciplines to help traders succeed consistently trading in the stock market.

Caution
According to the Federal Trade Commission, 'How-To' Products Promise Extravagant Profits, Few Risks, While North American Securities Administrators Association Says 70% of Day Traders Lose Money. Please visit the FTC at the link above. The information provided on this site is for educational purposes only and does not give trading, investment, tax, or legal advice. The information presented here is not specific to any individual's personal circumstances. Because of the nature of financial leverage and the rapid returns that are possible, day trading can be either extremely profitable or extremely unprofitable, and high-risk profile traders can generate either huge percentage returns or huge percentage losses. Anyone who chooses to use the information here in real trading does so at their own risk and will be responsible for their gains as well as their losses.

Create a Financial Plan - Bring Your Dreams to Reality

Creating A Personal Finance Plan

Every year people make New Year's Resolutions and at the beginning of this year is no exception. Some popular resolutions includes: losing weight, making more money and getting out of debt. However, the problem is that most people do not follow up on whatever resolution they make or they lack the "know how" to carry out their wishes.

On this blog we will be focusing on making new money. We will provide you with information you can use to explore the opportunities available in the stock market to help you accomplish your financial goals. We believe that new money will help you meet most of your needs.

Visit LaBordeFinancial.com regularly to review the latest personal finance news. You will learn how these new developments may have an impact on your money and what you need to do to safeguard your finances.

Setting Your Goals

In order to achieve your dreams there are some basic things most financial advisers agree on. For you to succeed it is absolutely necessary that you convert your wishes to goals and write them down. To hit a target you must have some thing to aim at - your goals are your targets! First, you must create a written financial plan which is developed from your goals. Then, research the strategies needed to help you reach those goals. Lastly, you must implement the strategies that best apply to you.

Use the tips you learn in the video above to help you write down your goals and create your unique personal finance plan. Here is a review of the easy steps you need to take to create your own plan:

1. Write down your dreams and/or your New Year's resolutions.
2. Watch the video above and write down the important tips mentioned for creating a plan.
3. Convert or re-write those dreams into goals using the tips from the video.
4. Research the strategies you need to implement that are necessary for you to accomplish your goals.
5. Take action NOW and do them!

Note

• Everyday, do something that moves you closer to your goals!
• Make peace with God and yourself and prepare for eternity!
• Do your best and prepare for physical emergencies!
• You may follow this basic planning guide and prepare for your financial success!