During the 9/11 war oil prices surged and energy stocks followed. Currently the entire market is finally, I say finally, because I shorted it too soon but if I had deeper money longer puts I would be reaping the rewards. My prayers to the Ukraine people. Reading headlines of 10% nuclear war chance seems dreadful. It doesn’t matter how much money you earn flipping houses or in the market if the world is bombed with nukes. Money is worthless at that point so I’m just staying positive that we, including Putin, will get to some point of agreement or end to this conflict. Usually when the USA enters a war we say months but it turns into years. If you view the chart below it shows and energy company following oil.
Just recently, as oil began to spike, oil rig companies that weren’t as profitable now are reopening their unused rigs again for foreign and domestic capabilities to drill. Same thing happened when we had oil conflicts. From my experience in the stock market trends repeat themselves and that’s when you should take notice, journal it, and use it to your trading advantage.
So part of me wanted to invested in long calls on Facebook. It’s still a cash generating machine globally and I really liked my metaverse VR goggle experience even though I’m not a gamer. However, I decided after seeing how energy stocks were up I researched a little more. I came to the conclusion that if this war continues and draws out energy is where to be until it is resolved. So I’m taking a big gamble on beaten down energy stocks that typically follow the leaders around oil prices. We have been living on cheap imported oil for a very long time…
Stocks like RIG, SWN, HAL, XOM
I bought contracts on 1 leap year call options. A whole year to be right or wrong on RIG which predominantly has oil drilling rigs, equipment, and services foreign and domestically. It would actually make a great covered call play at the current price if trends up long-term. I think as long as there is war and conflict we will see a lot of movement in these stocks that have been dead since the end of 9/11.
The real question I have to answer and take action myself is if I’m very right at what point am I happy with my profit and take it off the table. I guess that would be when Putin gives in or his country takes over his country or maybe his army just loses. But, how soon will that happen? You think with all the super tech military drones we have this war would end soon. And what about cyber wars? If Russians have been hacking companies and governments you would think more than ever they would be hijacking everything they can to control the digital e-commerce world creating more problems.
March 8, 2022 | Categories: $100/bbl oil, 2008 stock trends, call options, rig | Tags: facebook, fb, metaverse, oil and war, rig, stocks to trade during oil spike, trading stock options | Leave a comment
Last time I blogged I was just in my second year of farming. Well, not farming anymore. I’ll be turning 41 this year. By 2019 I was ready to close my farm business and had already decided to put any money I had to buying and selling houses before I even knew flipping was a big thing. So I sold the last house I bought and took the cash to flip something in the Richmond, VA area.
So far I haven’t done so bad. In the past two years I’ve bought two ugly houses at a discount and turned them into luxury remodels. I’ve paid off all my old farm debt ($75k), paid off private lenders, and about to pay off my new work van before the end of the year. I figure if I can flip just one house a year I’m doing alright. In between flips I’ve done a cargo expediting business driving crazy hours half the year as a side hustle to make more money but I am closing that business by the end of the year as well to focus just on doing flips and building up a couple of rental properties. Every once in awhile I really think about my stock option trading days and want to do covered calls – basically buying the stock and options together to get called out for a low risk profit. In all the years trading options I never bought covered calls or puts. The stock mentor guru I paid classes from always said if there is one thing you get out of these classes and you don’t do anything else do covered calls once a month with a size-able account.
So 41 and almost out of debt. I’m also been working on my fathers war story memiors in comic form to publish for over a year now. Lots of projects. I even put a handyman ad out on craigslist to get jobs in my downtime. It’s a little scary but anything is until you do it a couple of times.
I still can’t believe how much money I lost in my twenties purchasing stock and real estate. None of it ever worked out. I figure I lost over $200k. It makes me scratch my head. I didn’t do anything really. No fun. Every bit I saved working tirelessly and living frugally didn’t ever make me a millionaire investing. So don’t believe everything you hear and ever dumb conference or guru that wants your money. You are well better off sometimes just following your own way even if it still loses. I think my own regrets in my 20’s and 30’s penny pinching and trying to be an entrepreneur too hard. It would have been nice to just spend a little, travel more, and just have fun. So that’s my advice. Don’t care about money just have fun and money will come if you are still willing to work hard, hustle, and keep taking action regardless if you reap what you sow or not.
Sometimes I think I have the worst luck. I’m trading a bullish support pattern in-the-money trade on Google entering into the late afternoon to get out before the close (earnings). I change windows and by the time I look back I see these red numbers changing like the speed of sound. I’m so confused. I think a bomb just went off and the markets are in a complete panic – no, Google just released its earnings unexpected during the mid-afternoon – just 10 minutes after I entered my CALL option trade. My $11,000 trade went from profitable to $0 in about a minute. I couldn’t even get out it happened that fast. My body feels quite sick at the moment and my head is hazy. So now I have to start ALL over again damnit. The world of pain I live in and my mother wonders why I just want to be a hermit in the woods.
Break-down of this trade: Enter 12:27pm, Google release earnings at 12:30pm prematurely instead of after the close of the day, my account is wiped clean in about 1 minute. I watch in confusion and panic as Google drops so fast I can’t get any order to go through to sell out and take any type of loss but $0. Damn these unexpected releases! It doesn’t feel ethical to the small investor.
Did you feel any of this afternoon pain from Google? Share your bitter sadness….
October 18, 2012 | Categories: goog earnings, how to lose all your money in one trade, trading stock options, unexpected earnings release | Tags: cashflow machine makes me cashless, good quick fall, google unexpected earnings release, i want to kill myself, suicide afternoon, trading stock options, what happens when you are on the wrong side of the trade | 2 Comments
Okay, so yesterday with $4500 in my account I took a BIG bet on Apple’s stock that since it was swimming around $630 and not dropping that it would move higher. It did move higher into the close so I double upped big time on AAPL OCT 670 CALLS @ $.23. Now, I bought 1 contract of AAPL OCT 670 CALL @ $2.71 only a few days earlier. I think only 2 days earlier. So $3 to $.18 cents isn’t that promising to just JUMP into, but I felt the bear gunslingers in this trade were getting tired and the bulls were regaining energy. I mean, how much positive news does it take to make Apple move again??? All good news and the stock was just constipated sitting on its ass. Once that poop went through it would run again. Well, I was in luck today because although there were always rumors finally luck came my way with an actual fact that Apple was going to show a product in the next week. Apple went from +$5 to +$13 making the out of the money calls suddenly more volatile and quickly change from snails to rabbits immediately as the market maker saw the opportunity to make money. Believe it or not this happened in less than 45 minutes. My option doubled and I couldn’t even be sold out of my GTC because I had an ALL OR NONE on my price of $.50 with the current bid/ask of $.67-.70. In a helpful way that ended me gaining another +$3000 profit as I cancelled it and did a limit price opening it up to partial fills taking around 1-2 minutes of complete thrill as I saw it being filled up at $.80 instead of $.50 (+248%). I wanted AAPL to reach $650. This was my target to sell out but I was able to sell out quickly around $647-648 with my option target above what I wanted. I didn’t wait. I wanted to be out of this trade BADLY. I like big fat tech stocks but not in near death $0 expiring options. I know what happens at the end of expiration when you wait – and HOPE – nadda – zero – sorrows – and lack of discipline that only leaves you unable to stay in the game. I told myself if Apple didn’t do shit today I would sell out at a bigger loss if it ended at $.10 to $.18. However, today I really got lucky and the support on technical charts which I saw a crater forming over the 5-10 day chart make Apple finally pop – however Apple could have just continued to fall – so I WAS lucky on this one even though Apple really was constipated in price. I would have stayed in the trade if my options weren’t near death because it’s a high probability chance that AAPL now will move even higher tomorrow with a big white candle with a kicker bullish chart setup. I’m happy with the cash I got and I’m on to a less risky in-the-money intraday trade. I’m better at trading intraday – smaller profit – less stress – no worries what the price will be the next day.
My currently account status
August 15th, 2012 – began trading again and started with $2000
October 15th, 2012 – into my tenth trade with an ending balance of $12,500 (up 525% – 60 days)
In my my 12 month plan I would be in month 4 so I am 2 months ahead. See post here how to make a million in 12 months trading options IF you are the BEST if you suck you’ll loose your ass.
October 16, 2012 | Categories: aapl options, aapl reversal chart, bullish kicker chart picture, rumor, technical charts, trading aapl options, trading stock options | Tags: 2012, aapl, Apple, bullish kicker chart on apple, how to loose your ass trading the stock market, how to make a million dollars, october crash? crater support, out of the money calls are risky, risky plays with big pay offs, trading stock options | Leave a comment
I should of looked at the big picture, but even that would of not stopped me trading on a solid streak. Well I’m down around 50% for Sept-Oct. 12′ so far. I should of knew better. Everything I was taught was to warn me about warnings season during this time. Even with all the positive growth and cash flow I still took a hit on my GOOG calls which were way in-the-money. I had 2 changes to cash out making some money and I sat on the piano waiting. I’m really pissed at Apple Inc. right now but they really don’t care. Apple has been dragging down tech in every way imaginable – which is plenty of a reason not to be buying CALLS in any tech. No matter the good news if Apple is having bad news everything will be brought to its knees. This makes me really think the big picture again – Apple can’t stay big and profitable forever unless is cross’s over into more products… more like Google. I’m still waiting for Facebook to really profit from its 1 billion users. Well, it’s not the end of the world.
I’m going to a stock options seminar in two weeks and bring my mom. I’m leaving the credit card home because I know I don’t need any specialized stock system to make good trades you just need discipline. I figured I go to learn some new strategies and just get me pumped to do better. I know I can. It is just a matter of focusing on what I do best and stay away from what I do worst. I’m still figuring that out, but what I do know is that I trade better intraday in the last 3 hours of trading 1pm – 4pm than any other time and doing it consistently even if its smaller gains. I’m becoming an old fart and I really don’t want a day job.
October 12, 2012 | Categories: trading stock options | Tags: aapl, apple bring downing tech stocks, goog, intraday best times to trade, october stock market crash, trading stock options | Leave a comment
I took $2000 of some money I got back from my school and felt the timing was ripe to trade some stock options. During this time I was deep into renovation a rental home and in full force finishing my MLitt in Film Studies dissertation project and essay. This was hardly the time to be trading volatile stock options on large cap stocks that move violently day to day. My main goal was to just earn enough to pay back, well everything, my total debt is around $130,000. I’m not afraid to say it. Most people hide it, but I hide nothing. I’m not proud of it but sometimes you make bad mistake after bad mistake or in my case I just consider myself likely somewhat handicapped in the entrepreneurial department. I would go as far as thinking I am mentally and business retarded at times making irrational decisions to achieve my American Dream – which now I know is definitely not greed for money but greed for personal freedom/desires (Which still cost money).
So here I am with $2000 to basically lose even though I need it for repair costs, credit card bills, yada yada. I see a great trade on Priceline Inc (PCLN) when I see it got crushed after a report on possible lower revenues. This stock has a solid cash balance sheet and great EPS/PE. I bought it around $559. I have been trading CALLS on it ever since and have done pretty well. Every time I get in it my main goal is to be out of it within 24 hours or less. For the most part I have achieved this. The other trade is with Apple Inc. (AAPL). I’ve traded some PUTS and CALLS on it. They have been mostly quicker trades the PCLN. For the most part if I wanted to I could be in and out of AAPL within 2-4 hours earning on average $500-1000. My last trade earned me around $3000. I’ve only done I believe 5 trades in the past 30 days. This is inline with Gary Williams trading rules to only trade 5-10 times per month maximum. I’m taking a break now so I can let my run cool and re-focus on my next trades. I am not as eager to trade as when I was 23-29 years old and I think that is because I am wiser at trading more now at 31 then when I began at a young 18.
I almost took my $7000 profit to buy a sweet badass 1965 mustang, but instead I settled for an ever cooler 1990 Bronco with a failing engine for $900 which I didn’t have to pull any money out of my trading account. Hahaha. Come on, just laugh! The back top comes off and it turns into a muscle jeep. My mom owns my loved diesel Jetta and I hope to get it back or just buy myself one once I have a more stable income. Currently I’m finishing my MBA, working on starting a mini aquaponics fish farm, trading options again, and among all this trying to now edit my first non-fiction book with a friend to publish and sell on all digital readers. So, I don’t know what my future of trading holds for me, but I do know I’m on a good run and I don’t want to give it up so easily.
Oh, if you are wondering about the Toke n’ Toss business ventures, well, it’s completely over. Now I understand why they say choose your partners wisely – marriage or business. Let’s just say this was another $5000 business lesson, but this lesson was one on one truck/stand vending for concert goers. Learned a lot, but learned the most that people that aren’t willing to budget and chip in on expenses should be left on the side of the highway as soon as they start complaining that a twelve pack of beer IS a business expense and YOU are going to pay for it because the partner doesn’t have any money.
September 17, 2012 | Categories: aapl, AAPL Analyst, aapl calls, aapl options, aapl reversal chart, pcln call option trades, put options, trading stock options | Tags: aapl, amateur trader, calls and puts, gary williams rules, pcln, profitable august and september trades, trading stock options | Leave a comment
In my previous post after the continue trending change in AAPL, GOOG, and PCLN I see them moving down further. News articles have already come up to scare off Apple investors. A bounce back from its previous sharp fall is normal. We’ll truly know a peak has been hit if AAPL big +30pt move dies by the end of the week. However, practicing these 3 helped me pick out the weakest of the litter – Google. Google has been moving like a slug in the crowd and falling harder when taking hits. For this reason out of my 3 practice trades I would trade my life on I would choose Google put options. I intuitively feel it has the most loose too because it has tried so hard to become everything and take over large markets. It is still a search engine and advertising engine, but it’s beginning to spread itself thinner and get into more trouble. Also it doesn’t really MAKE anything. Everything is digital even though it did buy Motorola it sounds just like to make them stronger instead of actually innovating a product line with a whole lot of money.
My current practice options must be down at least -80% but that’s okay because I’m smart to be practicing my theories instead of using real money like I use to. My expected bounce back on Apple that I knew was going to happen but could’t confirm did happen today. For the most part if a stock takes such a big dive, it’s still worth tons in free cash, and it’s a top tier company it DOES bounce back however from YEARS of watching the market if it is at a super high run up peak if it isn’t able to recapture it’s highs investors and big traders start considering to make million$ trading the other way down because ladies and gentleman you can earn just as much as not more shorting or put options on a stock – some awesome instrumental tools as a knowledgeable trader.
April 18, 2012 | Categories: aapl options, aapl reversal chart, apple inc. earnings, google stock, pcln options, put and call option practice plays, stock options, trading stock options | Tags: 2012 pullbacks and bounces, aapl, good, pcln, predictions of downtrends in stocks, trading stock options | 2 Comments
it seems like when ever the government bails out another company in this case being Citigroup (c) with a “rescue plan” or rumor of one the stock market surged up in the last 30 minutes of trading of the “good” news or is it? look at the automakers…. is it fair that the government only bails out selective companies? i don’t care what the government does i really don’t have much control over it’s decision but i do have control over my stock option trades. i do think if a company made really bad financial decisions then they should go down. let the strongest and smartest survive. so if the asian auto market takes over the usa because they have better management and cutting costs then say good bye to our automakers that created the industry because they don’t know how to “change” with the industry. we need a company that is going to make a big change for the environment and put their business on the line. hydrogen cars have already been made, why not in full production? just stop making normal cars and make better clean energy cars and price them same and i bet people would start buying them like hotcakes because same cost and less gas needed. the problem, oil. politicians still make mega kickbacks on oil so until we don’t bail out oil we are screwed for new innovations in the auto market.
i thought the market was finally going to move up 2 weeks ago, but it continued down some more.
SWN hit $22! bounced back up to $26 and i plan for it to hit $28-30 this would be a definite call option trade if for real. GOOG at $261. wow. hard times i guess on these once big high flying stocks…
I didn’t even realize how low stocks sold off until I saw today before the open. I would have traded short-term like 1 day in/out call options on them especially the good stocks. But if you watched GOOG today it dropped again to all new lows. Scary. Very scary, but awesome at the same time if you were playing intraday put options on it. I’ve noticed in my optionsxpress account now whenever I am looking at financial stocks basically all of them say “no short selling allowed”. They are really starting to protect companies too much. If a trader is short selling a company then he is betting on the company falling for good reasons. In the real free markets there should be short selling. If the trader is wrong he’ll lose all his money so the trader must no something.
Although I expect the market to continue falling I can bet the market with such a large drop and even a large come back +5% across the board on indexes will move up one more day before they continue you to fall. Now that I think about it they may just rally into Thursday when the Senate votes on the bail. A great economic blog called Giving Up Control makes some real points about the bailout, congress, and wolves disguised in clothes.
Here are my call option plays for tomorrow:
October 1, 2008 | Categories: put and call option practice plays, trading stock options | Tags: amat, bac, fslr, goog, hans, help in, how to, NTRI, NYX, put and call option practice plays, rig, rimm, september put and call option practice plays, sold off stocks aapl, swn, trading stock options, WB | Leave a comment
After the DJIA plunge of -500 pts/-4.5% I was just waiting for it to happen. Even my co-workers are asking me why this is happening. When I give them factual solid answers they won’t believe me. I don’t understand when someone asks your opinion, then they just argue with you and tell you are wrong! good grief.
The Fed doesn’t really rescue AIG, I suppose another handout, no lowered interest rate cut, although I feel they are working the same system as President Bill Clinton did in the 90’s when he was continually pressured with the Fed to lower interest rates, but instead they held them and then the market finally agreed and went up from there. I’m sure a lot of the turbulence in the markets is also do to the new President being elected the markets likely feel “uncertain” in what the President will do. Once the President is elected the markets will make up there minds and likely start to go up just because a decision has been made. From studying events in the market, this at least right now, makes sense so close to the election with all the other negative news.
I think about what I wanted to be when I was little and the answer is simple – a policeman. As I got older as a teenager it swithced to being a professional musician and playing concerts. Finally when reality hit in when I was around 21 I knew being a policeman had such much responsibility and rules. As for being a rockstar I just didn’t have the talent or discipline to constantly play my guitar, keyboards, and Dj equipment. Also my friends that were talented musicians never granted me enlightenhood into any of their bands so I would get better and stay motivated. Lastly once I became a real adult with some responsibilities and was active in business I knew that poor people can get rich and have a sweet life. What I’m finding out still everyday is that is does take a lot of effort and support to strike a great deal that makes you successful in business. I always founding trading stocks as something I have control of and could declare my own destiny. I’m still finding it hard to actually be a disciplined, managed, and focused trader. This probably one of the reasons I’m still a little poor bastard and pathetic sounding around women. I guess if you are a guy and you aren’t really great at anything your confidence level must be getting lower and lower the older and older you get.
Now I’m not saying I haven’t gotten experiences. I’ve gotten a lot of them, but that’s about it. I have learned a lot about how to manage, run, and market a business, but just not one that’s actually made any money. I’ve also learned how to follow stocks, understand candlesticks/emotions, and read the news but I’m still losing tons of money each year. My dad made a point that like I mentioned above “you have 100% control being a trader”. That statement is very true. You have the power to buy, hold, and sell at 99% of the time (unless the market is closed/closed due to crazy event). The fact is though if you can control the bigger factors like your emotions and brain focus being a successful wealthy traders shouldn’t be out of your control. So I guess that gives me hope as a little guy.
Well so far I’ve paid of 25% of my debt on the repairs on my new place I’m living which will eventually be rented out. I’m pretty sure within 2 more months I will have paid off the remaining 75% or total of $8,500. The big one I REALLY want to pay off is my student loan I used for investment that went bad which is currently $43,000 @ 12%/30 years. Fuck. I’m really going to need to focus on my trading to pay it off quickly within the next year.
So I’m interested in what you wanted to be 10-20-30 years ago and what you are doing now. Is it something you want to do?
September 15, 2008 | Categories: trading stock options | Tags: bad loan choices, emotions, how to pay off debt, personal experiences in business, repairs, trading stock options, trading stocks with control, what do you want to be when you were little? | 3 Comments
So on my short call plays energy stocks SWN, RIG, and FSLR would have continued to increase in option price, but tech RIMM and AAPL continue to fall with charts. RIMM charts actually looked like it was going to spike higher, but I’m pretty sure right now AAPL is influencing on its stock. I think RIMM will take off the quickest once its out of AAPL’s shadow, yeah you heard that right. They follow each other so I wouldn’t be surprised once it wins investors over again to move much quicker past its 52 week highs with a PEG of .82
GOOG yesterday created a fat big while engulfing candle going from $400 to the $430s a big swing showing its strong and no negative news is going to shut down its optimistic growth idea thinking. it’s advertising will keep being a money machine. I wouldn’t be surprised to see GOOG swing back up past the $450’s into the $500’s again this fall as the tide increases.
We are definitely at a low low tide. So the best stocks should start to show some sunshine soon..
So the market sold off thursday and friday. I expected the market to dump friday. Historically it seems there is more bad news on a friday then good. I suppose the CEO’s can take off quickly on their yachts and forget all the bad earnings they just reported.
I bought 10 more Visa MAY 85 Calls – out of the money this time. My last calls went up to $5.80. It would have been nice to sell out and rebuy back at $1.55 like I did on Friday, but work prevents me to and my GTC order was up to high I admit. I lowered my GTC order at $5 expecting Visa to move back up monday through wednesday with the market recovering some positions especially in a hot IPO like Visa that is a money maker and growth creator. I could be wrong I have been before! Yet I only have like 4-5 days to hit my GTC order and with time against me I’m looking at Tue or Wed then I have to sell my calls and either take a loss or bigger loss = $0 expired calls. Currently I have around $2000 in the position.
My India venture is not running smoothly. It is so wishy washy. I’ve talked with other American entrepreneurs who use India either as a partner or outsoucing and the rumors seem very true that there is a major problem in communication. I keep asking my partner to email our work completed for our customers such as a Daily Project Report which I created. All the project manager has to do is type in a 2-3 sentence summary of the work completed for the day and email it to the customer, myself, and my partner running the business. Does this sound like too much? When you continually see bitching customer emails and communication is definitely unclear you think doing what your American partner asks is completely understandable not cumbersome. All I want is just 2-3 sentences for me and our customers. This keeps them off our back, gives them an up to date understanding of what we are doing for their business, and creates a legal log as proof with an email trail showing we are completing work. Now why after over a week asking for this to be done daily it isn’t??? Two words = No Control. I have no control. All I can do as an investor and partner in this India business is to invest in them and realistically “hope” they succeed and finish the jobs the current mismanaged way they are doing it. I feel no one is listening to me and taking my views and thoughts into consideration. I don’t like managing other people, but clearly there are problems and a daily update for the customer would 100% clearify what the hell is going on! I hope my partner starts listening to me and let me help him create better clearer customer satisfaction. Business to business is all about referrals and currently being in the customers position even if we do have problems with them is keep things clear and understanding how they think. I don’t think my partner really cares and that is going to create monsterous problems in the future building our business together. I wish I was there so I could be with the team, write a brief summary, and report to the customers myself. We are trying to act like a big corporation but obviously we are acting like a small two person business! hahahah. Personally, I think showing customers we are about the IT solution projects we do for them will boost our customers thoughts about our professionalism and giving us referrals to keep us in business.
Anyway. I’m buying a condo in Hawaii. I can’t remember if I mentioned that. It will be a 1023 sqft, 3bed/2bath, 2 parking space condo in a town called Mililani in Oahu. It is centrally located in Oahu and the back door to the North Shore. I got it bank owned which was abandoned and got it for $235,000 around $60,000 under the 2007 tax assessment and under $80,000 2008 market assessment value. It is a great price and in a very nice attractive neighborhood. It might sound expensive but similar costs over $325k – 600k. I’ve already put an Ad out for roommates even though I don’t even have it in my possession yet. The kitchen needs to be redone so I know that is going to cost me $10k. I’m going to sell my boat and take that money to repair the kitchen. It will be a 30-45 minute drive to work, but well worth it finally owning and living in something I’m going to love. Plus renting it will not be a problem if I ever leave Hawaii and I got a VA loan being military so I recevied 100% financing and no PMI. So I definitely got a bargain and made big money by just getting ahold of it negotiating with the bank.
I suppose I will keep blogging for you 1-5 blog readers curious about what another entrepreneur is up to. Please if for some reason I make you super rich pass it forward and share the success with me financially or making me a partner 😉
May 12, 2008 | Categories: trading stock options | Tags: blogging, buying a house in hawaii, giving customers 100% satisfaction, india business venture, mililani condo, parnter communication problems, recent pull back, reports, trading stock options, v, visa may 85 call options | 6 Comments
I begin again on my big school tuition journey funding my OptionsXpress account with $1000 to trade options with. The real question I ask myself is am I learning from my mistakes? Will I prevent myself from getting into bad trades? Will I wait for when everything is “right” and all “probabilities” are in my favor to trade a Call or Put option? I guess I’ll find out after trading over 20 $1000-2000 funded start trades. Actually more like less than 10 that I can think of.
My trading plan:
First I’m just going to let the money sit in there until I’m 100% certain a trade will work because the story of the market and stock should show and tell me when and how to trade a stock. Just waiting and not overtrading should help me, not that I over trade, but sometimes even only doing 1-3 trades a month feels like over trading.
Secondly I only deposited $1000 so I couldn’t trade a bigger trade then $1000. If I can’t double or triple my $1000 then I shouldn’t be trading anything larger such as a $5000 or $10000 trade.
Any profits larger than $1000 off the $1000 trade I’m going to withdraw them back into my bank account. Why? This will prevent me from trading more than a $1000 trade because knowing thyself I will trade bigger trades with my profits and likely blow them off. Keeping myself on a $1000 trades will in some way discipline myself (which taught) until I can master just trading $1000 constantly. I may only be able to by two contracts at a time. This is OKAY. I’m use to being cheap trying to make it rich and buying tons of contracts just to run out of time and lose all my money on one trade, which happens commonly.
If and that is a BIG if I can manage not to lose my $1000 on any trade I’ll just get good at trading small number of contracts until I know I’ve fixed many of my previous and ongoing mistakes.
Losses – If I’m only trading with $1000 I’ll have to cut my losses quickly or else I’ll have to fund my account again which I don’t ever want to have to do again. I want this $1000 to go and work very hard for a very long time. Since I’m still working it will be hard to sell out of the market so I will be using limit stops more often or not trade at all until I have a clear view of what thet market is doing and react to it.
I’ve traded $1000 into $10,000 and up to $40,000 within months so I believe I can do it again, except I will be keeping trades exactly at $1000 so I will only be able to see profits in my savings account which will go towards paying off debt. It would be really nice to see my account over $40,000 again, but that can wait. My goal is to just be able to not lose money and stay profitable trading in the money with at least 2 months of time like I know I should be doing, but haven’t been doing.
January 22, 2008 | Categories: how to invest $1000, trading plan, trading stock options, what to do with $1000 | Tags: how to invest $1000, trading plan, trading stock options, what to do with $1000 | 2 Comments
UPDATE – Revised my rules, click here to goto new updated blog on this challenge!
HOW TO BECOME A BILLIONAIRE IN 20 MONTHS BY TRADING STOCK OPTIONS:
FIRST THE RULES:
RULE #1 – YOUR MONTHLY CASH HAS TO EARN 100% COMPOUNDED FOR 20 MONTHS
RULE #2 – YOUR STOCK OPTION PRICE EQUAL OR LESS THAN $2 BUT NOT LESS THAN $.50
RULE #3 – YOUR STOCK PRICE HAS TO BE VOLATILE ENOUGH TO MOVE $2-3 IN 1 DAY.
RULE #4 – YOU CAN ONLY DO 1 TRADE A MONTH FOR THE 20 MONTHS AND YOUR 1 TRADE HAS TO MAKE 100% (TOTAL OF 20 TRADES).
RULE #5 – YOU CAN NOT ADD MONEY TO YOUR BEGINNING CASH BALANCE YOU ARE TRADING TO EARN 100% ON.
RULE #6 – YOU CAN NOT BE IN AN OPTION TRADE MORE THAN 4 BUSINESS TRADING DAYS.
RULE #7 – IF YOU ARE WRONG AND YOUR OPTION TRADE TURNS NEGATIVE AND WITHIN THE 4 DAYS YOU ARE INCORRECT ABOUT WHICH DIRECTION THE TRADE WENT THEN YOU HAVE TO START BACK AT MONTH 1 AGAIN.
RULE #8 – YOU CAN TRADE CALL OR PUT OPTIONS AS LONG AS 100% IS MADE.
RULE #9 – EXTRACT MONEY TO PAY TAXES AFTER MONTH 10.
RULE #10 – IF YOU MAKE IT TO MONTH 20 YOU ARE AN EXTRAORDINARY PERSON WITH SUPERIOR DISCIPLINE AND TALENT. I MIGHT ALSO INCLUDE YOU ARE 100% CRAZY.
IF YOU HAVE BETTER RULES PLEASE COMMENT THEM IN BELOW AND LET ME KNOW IF YOU ARE UP FOR THE CHALLENGE OR ONE SIMULAR.
I’M STARTING DEC 2006, LETS SEE HOW FAR I PERSONALLY GET!
DEC 06 MONTH 1: $3,000
JAN 07 MONTH 2: $6,000
FEB 07 MONTH 3: $12,000
MAR 07 MONTH 4: $24,000
—————————–> made it to $44,000 by Feb 2007 starting with $1000
APR 07 MONTH 5: $48,000
MAY 07 MONTH 6: $96,000
JUN 07 MONTH 7: $192,000
JUL 07 MONTH 8: $384,000
AUG 07 MONTH 9: $768,000
SEP 07 MONTH 10: $1,536,000
OCT 07 MONTH 11: $3,072,000
NOV 07 MONTH 12: $6,144,000
DEC 07 MONTH 13: $12,288,000
JAN 08 MONTH 14: $24,576,000
FEB 08 MONTH 15: $49,152,000
MAR 08 MONTH 16: $98,304,000
APR 08 MONTH 17: $196,608,000
MAY 08 MONTH 18: $393,216,000
JUN 08 MONTH 19: $786,432,000
JUL 08 MONTH 20: $1,572,864,000
CONTINUE FOR 11 MORE MONTHS TO BECOME A TRILLIONAIRE
DO YOU HAVE WHAT IT TAKES? DO YOU LIKE THE CHALLENGE?
Here are some positive articles on becoming a millionaire and then billionaire:
November 27, 2006 | Categories: how to become a millionaire, money management, One24 Online home-based business, trading stock options | Tags: how to become a billionaire, how to become a millionaire, http://www.124today.com, One24 online home-based business, steps to making millions, trading stock options | 143 Comments