The working person’s trading method detailed. Part 3 My Trading History and Introduction.
This post will detail my trading history, my historical returns, and recommended reading,
Recommended Reading
My method is an amalgamation of various methods that I have run across in my reading/studying of the markets over the last 10 years. Books/people who have influenced my method the most are Jesse Stine and his book Insider Buy Superstocks: The Super Laws of How I Turned $46K into $6.8 Million (14,972%) in 28 Months, Pradeep Bonde of the Stockbee blog, and Dave Landry and his book The Layman’s Guide To Trading Stocks. Check out my Resources page to see more.
Before reading this guide, I would encourage you to read the two books above and to check out the Stockbee blog. Read through his most popular posts and read a lot of his posts on Episodic Pivots. As a bonus if you want to read, William J. O’Neil’s book How to Make Money in Stocks: A Winning System in Good Times and Bad, Fourth Edition it wouldn’t hurt but it is not a requirement.
After going through the recommended reading come back here and I will get into the nitty gritty details of how I trade. A lot of books and blogs do not get into the details in terms of scans to use, daily process flow, setting alerts, placing orders with your broker, etc. The majority of books only show you the 30,000 foot view and to get more you either have to pay an exorbitant fee or figure it out on your own. My goal with this blog is to keep it 100% free for the end user. I will support the costs, and potentially make a small profit from advertising and Amazon affiliate links. I may potentially even have a donation option. The reason I want this information to be as good, or in many cases better, than paid information is it is my way of giving back. I loaded my brain with a vast amount of knowledge that was attained at a very fair price, so I want to disseminate my knowledge at a fair price. Free is as fair as it gets.
My Returns and Trading History
Many will want to know what kind of trader I am in terms of returns. It is a sort of confirmation mechanism that many people seek. I will get to those in a minute, but first I want to give a brief synopsis of my learning process. I read countless books on the markets BEFORE I ever placed a trade. I felt as though I did not know enough after every single book I read, or that I had not found a system I liked. I most gravitated towards How to Make Money in Stocks, but I felt as though it was lacking something. I never completely understood what that was. It was only after reading Insider Buy SuperStocks that I began to feel I had found something. Reading the Stockbee blog, and reading The Layman’s Guide To Trading Stocks completed the knowledge barrier I felt I was lacking. It was a long time between reading my first book about the stock market and actually placing my first trade. So I feel as though I was a little more prepared than the average beginning trader.
In terms of my returns my first full year of trading was 2015. In that year I made a 74% return. In 2016 I experimented with some new methods, shorting, and options. I only eeked out a 5% return in 2016 because of these mistakes. At one point I was up a very large percentage in 2016, but gave it all back due to too much experimentation. No matter, I view this as a tuition cost. In 2017, to this point at the end of March I am currently sitting at a 35% return for the year. I may at some point have my returns audited so people can see for themselves and not have to trust my word.
I also funded a small account for trading bitcoin/alt coins via Coinbase/GDAX and Poloniex in 2017. I also began using a small percentage of my Interactive Brokers account to trade penny stocks. My trading in bitcoin/alt coins and penny stocks is similar to my main stock trading methodology, but there are some differences. I will detail the differences at some point, but this guide is for my main stock trading methodology.
I have a goal to have $1,000,000 between all of my trading accounts by the year 2022. This is possible given my returns, the current size of my accounts, and the amount of money I am automatically putting into my accounts each month. Another goal of mine is to help as many people as possible achieve a similar goal. I plan to do this via providing free information on this blog. While I may write a book someday, I do not plan to really sell anything here other than a book which will likely have very similar information as this blog will have. No $1000 trading courses that have information one can easily find for free or at a very low cost.
In the next post I will give you a deeper overview of the method.
Working person’s trading method series:
Part 1: Why you should trade.
Part 2: Resources
Part 3: My Trading History and Introduction.
Part 4: An overview of my process.
Part 5: The characteristics of a stock that makes my watch list.
Part 6: Money Management: Finding Buy Points, Setting Stops and Targets, Position Sizing
Part 7: The Weekday Routine and Scans
Part 8: The Weekend Routine and Scans
Disclaimer
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Originally published at Speculate Freedom.
