| I know a man who turned a $15,000 trading account | | | | Going for small 15%- 20% profits seemed like a |
| into $3.3 Million. It was an amazing stroke of luck. He | | | | waste of time to me. I wanted a big, huge, winner or |
| even admits this. | | | | nothing. then in July 2003 as tock called TASR |
| "MARK, I am no fool. I know I was just plain lucky. I | | | | seemed to fit this bill. There was a lot of excitement. |
| don't have magical system. I am not privy to insider | | | | The stock was flying up. People were buying in and |
| information. I merely gambled BIG on the right stocks | | | | the market conditions seemed much more positive. I |
| at the right time. It was no different than winning the | | | | decided if the stock rose to $12 I was going to buy |
| lottery. I seriously doubt I could ever repeat it." | | | | with all my account. I was only playing with "house |
| Obviously my first question was: | | | | money now" and I was prepared to risk it big to win |
| "How did you manage this? What stocks did you | | | | big. I bought 16,600 TASR at $12....boy was a |
| trade and why?" | | | | nervous wreck for a few days as the stock |
| Here's what floored me. But it shouldn't have done | | | | "gyrated". THEN it took off. Just like Microstrategy |
| so. His massive wealth creating principles are exactly | | | | did. It seemed everyone wanted in and it was the |
| what the big stock traders throughout history have | | | | talk of the stock market over the next 8 months.. |
| been preaching for years. | | | | Can you imagine how I felt when the price rose to |
| Here's how he did it: | | | | $60? I was a paper millionaire. I decided not to be |
| 1) In 1999 in the final leg of the run-away bull market | | | | too greedy and took some of my profits off the |
| "bubble" he opened a trading account with just over | | | | table..... I sold 6,600 at $60 ($396,000) so I still had |
| $15,000. Simply because all his co-workers/friends | | | | 10,000 in TASR and the pressure was off. It now |
| family/neighbors kept telling him how much easy | | | | became a game. How high could TASR go? Could it |
| money was being made in the stock market. He had | | | | defy gravity? |
| never read any books or bought any systems. Never | | | | 6) I simply trailed my exit behind the closing price. |
| attended a seminars. So he was lucky in that his | | | | Giving it enough leeway to avoid being exited |
| head was not filled with the B*S* most spill out. | | | | through natural gyrations. In April 2004 I was exited |
| 2) He attended a few stock market chat boards and | | | | at $290. I sold 10,000 shares at $290 for $2.9 |
| everyone seemed to be excited about a stock called. | | | | MILLION. Coupled with my 6,600 I sold for $396,000 |
| Microstrategy. It was trading at about $10 and he | | | | it meant my account was now at: $3,296,000 Million |
| made his mind up that if it rose to $14 he would buy. | | | | And that's how I did it. |
| "Made sense to buy a rising stock" he told me. The | | | | It's an amazing story. But here are the points you |
| stock hit $14 in no time so he bought 1,000 shares at | | | | can really take home in the hope of achieving |
| $14.50. He took a deep breath and held on. | | | | something similar one day: |
| 3) The stock kept going up 15%,25%+ in a week | | | | 1) He went for the truly big moves with big capital. |
| hardly ever stopping. It made me laugh how much | | | | there was no "diversification" here. |
| easy money I was making. People kept telling me to | | | | 2) Luckily, he got into the truly biggest movers of |
| get out as the stock rose but I figured if it fell by | | | | that market cycle. |
| XX% I would exit then. As the stock kept rising and | | | | 3) He held on for big profits. Most people make a |
| rising way beyond what anyone ever thought | | | | quick 20% (+/-) profit and exit... Imagine missing out |
| possible I made a decision that if the stock made it | | | | on these huge gains because you took a small, quick |
| to $290 I would exit. No question asked. A few | | | | profit? |
| weeks later it did and I sold out. I now had an | | | | 4) He made his money during bull markets. Lost it |
| account size of $290,000 from a starting capital of | | | | during bear markets. But at least he kept away from |
| $15,000. | | | | the worst of the bear markets. |
| 4) "I thought this was too easy" Boy was I right. I | | | | 5) He traded without fear. Scared money can't make |
| then made another 5 trades and lost on everyone. | | | | big money in the stock market. |
| Qcom, YHOO, AMZN were some of the stocks | | | | 6) Absolutely no fancy computer driven trading |
| people kept telling me were going to go up big. but I | | | | system that costs thousands of dollars needed. |
| lost thousands of dollars on each one of them. My | | | | 7) His exit strategy was simply driven by |
| $290,000 account was whittled down to $245,000. I | | | | PRICE...No-one opinion was followed. |
| decided to withdraw$45,000 and leave the rest in | | | | 8) It's better to be lucky than smart. |
| until the general conditions improved. I took a long | | | | What he actually did was exactly what Jesse |
| vacation to Hawaii with my profits. How sweet. | | | | Livermore/Darvas etc.. have preached for many |
| 5) I never traded for over 2 1/2 years.... I only | | | | years. |
| wanted another exciting stock like Microstrategy. | | | | |