For my blog please click here: Kingston’ Journey through the madness
Welcome to my web page and blog about my journey and services that helped me become a successful day trader.
Day trading is not the simplest of careers you can choose. Day trading is an emotional roller coaster ride, especially when you trade penny stocks (companies with a share/stock price below $5, with a small amount of shares/stock available and tiny market capital). But lucky for you that there are services online that can help you becoming a consistently profitable trader and help you find that niche that you are looking for.
These services will help you learn how to trade penny stocks, small caps and also large caps (AMD, Apple, GE ect. ect. to same a few). I stand by these services, because they have helped me improve my trading and I am convinced that these services, DVD’s and courses will help you too!
Investors Underground offers a service aimed at traders that have already touched the market, but also offers two great DVD’s for beginners looking for basic information. It is no surprise that 80% of traders improved their trading by joining Investors Underground. For more information, please click here: Investors Underground subscriptions.
These services will teach you how to pick the best stocks and teach you how to trade the best setups. Be it small caps, penny stocks or mid- to large cap stocks, these services will always teach you something new or give you a new perspective on trading. These services are easy to use and offer quick and simple solutions to beginner issues, like how to build a watch list and how to trade long or short. These services also help advanced traders who are looking for new strategies to trade or would like to broaden their knowledge and expand on their strategies.
Last, but not least, I would like to introduce you to Tim Grittani. He started with only USD 1,500 and turned this to millions. He documented part of his progress and created one of the best DVD’s out there called Trading Tickers. Please click here for more details: Trading Tickers by Tim Grittani
Please read more below about these wonderful services and DVD’s. If you found this blog via Twitter, please do not hesitate to send me a message by replying to my tweet. I am always happy to answer any of your questions.
Investors Underground, the best trading community
Investors Underground is a chatroom service, that offers watch lists and regular webinars about a subject, but also about the current state of the market.
There are four chat rooms available:
Momentum chat is moderated by Nathan Michaud, also known as InvestorsLive and is aimed at day traders. People will often share their watch list, which stocks they enter and exit, often they will post news or hot catalysts of the hottest tickers/stocks at that moment and also they will post about any hype or direction of the marker. Nate always shows which stocks he is currently watching (well before the opening bell and during the whole day).
Swing chat is moderated by the amazing Michelle Offshore hunter. She has multiple webinars available and offers loads of content to learn from. Her chat is based on holding stocks for a longer amount of time. She rarely trades Penny stocks and focuses more on large cap stocks like Twitter, Facebook, Amazon, Netflix and Apple.
Crypto / OTC chat is moderated by Cody. This chat is for people who like to trade Over the Counter / Pink sheet (“OTC”) stocks and Crypto currency / Block chain. Cody has some webinars, but I do not trade any of these things, so I do not have much to say about this chat.
This chat is helpful for anybody. This chat is where all the questions that you have can be placed. Keep in mind that everyone is trading too, so there is a chance you need to wait for an answer. Nate answers all questions to the best of his knowledge, even when you do not want to hear the answer.
Investors Underground also offer weekly trading webinars. At these webinars you can ask questions or ask for examples of issues you are facing as a trader and how they might do a trade differently. This is all available on the I.U. Elite subscription. Also, these webinars are recorded, so you can re-watch most of the webinars in your own time.
Topics covered in webinars are, for example, how to use VWAP, what are good short setups, how to swing trade stocks, how to build a watch list, which stocks are hot right now, which sector is booming and what is the current state of the market and where do you need to look for hot stocks to trade.
If you are interested and would like to subscribe or read more about Investors Underground please click here: Investors Underground.
IN SHORT, I.U. OFFERS THE FOLLOWING
- Daily watch list
- Weekly webinars
- Video trade recaps by Nathan Michaud
- Chat (momentum, swing trading and OTC / Crypto Currency chat and a lounge chat for all sorts of questions)
- Textbook Trading DVD
- Tandem Trader DVD
Textbook trading offers an insight into the trading style of Nathan Michaud and the setups that he trades. He is helped by CAM. His right hand man and long term trading buddy. He also offers an insight on how he builds his watch list and why he is interested in a ticker. The DVD offers details into different setups like the ABCD long trade, red to green and green to red moves, short setups, over extended setups and OTC trading. If you are interested, you can buy the DVD by clicking here: Texbook Trading DVD.
Tandem Trader is a collection of live trades preformed by Nathan Michaud. A must have for any new trader or experienced trader. With over 12 hours of information to learn from, Nate offers details to tickers that were recorded live. You can see how he enters and exits his favorite setups like the ABCD, Parabolic short and fading setups. He also gives detailed commentary and explains why the trade was good or bad. If you are interested, you can buy the DVD by clicking here: Tandem Trader DVD.
Trading Tickers by Tim Grittani
Tim Grittani is a self made millionaire that started trading with only USD 1,500 and turned this tiny amount into USD 6 million. He recorded two years of his trading career and compiled his winners and losers into a DVD which you can buy here: Trading Tickers by Tim Grittani.
In this DVD, Tim details his favorite setups, teaches the basics, teaches about Level 2, how to read time and sales and he shows, via live recorded trades, which tickers made him money and on which tickers he lost money. It was all recorded live, much like Nathan Michaud’ DVD Tandem Trader.
A LOT OF COMMOTION IN THE WORLD OF TRADING
With all this commotion, I still stand behind these services. Look, ultimately it is up to you how you will deal with trading. It is your life. These services have helped me big time. Also, keep in mind that I am also learning still. I will always be a student of the market. There is so much to study! So much to learn from. The marker is always evolving and changing. Like the market, we also need to grow and adept. Otherwise, if you do not adept, the market will eat you.
My advice is that people should start trading with a small portion of their total capital. Lets say you have USD 50,000 to your disposal. I’d say, to learn from experience, you start with USD 5,000 only. You will most certainly lose this amount, unless you are a genius! But take that loss as a given and learn from that. Use small sizes, like USD 500 positions. Worse Case Scenario, where you lose all your money on one trade, you still have at least 10 trades at your disposal. Not to make profit, but to test your strategies and to learn from experience. On a side note, paper trading can only take you so far. Actual, real time, trading involves emotions and stress management. Worse Case Scenario, where you lose all your money on one trade, you still have at least 10 trades at your disposal.
Make a journal and review your trades. Track what works and what didn’t work. The goal here is to become consistently profitable. Yes, you risk capital. BUT DON’T BE GREEDY! If you study the market, one day you WILL be profitable. Grow from there. There is no way back.
Some personal points I can give you is 1). Have a decent and realistic risk versus reward ratio. The goal is to protect your capital from any harm. Depending on your account size, i’d say your risk per trade should be 1% of your total capital and your profit ratio should be 2%. Lets say your account size is USD 5,000. You risk USD 50 to make USD 100 per trade. This way you can be wrong at least 100 times before you lose all your capital!
2). Don’t be greedy. Yes, having a 30% gain on a single trade is sweet. But you should also be happy with that 4% gain.
3). And this one is important for me, keep a tight record on commission costs. These costs can eat your gains like there is no tomorrow! Start with singles and size up when you have the capital and experience. Because size can mess up your plan!
- study, keep on learning
- start small, do not waist your money
- Manage risk!
- Prioritize on being consistently profitable (4% gain is good man!)
- grow from experience that actually works
How did these services help me, personally, become a better trader
First of all, when I started trading, there weren’t any services that taught how to trade. Especially no services that fueled my thirst for high risk trading. As an accountant for hedge funds, I saw high risk trades from up close. Yet, I was never able to touch the trading desks. These were magical places, with individual that were by far more intelligent then me. They could see things, other did not and made plans faster then anybody would. I saw big Banks of America up close and could only grasp a tiny bit of what was actually happening. These hedge funds traded all sorts of constructions, like debt driven companies, CLO’s and high risk bonds. I just saw numbers and wanted to know more!
I liked this way of trading. Quick money (they usually held stocks or bonds from a week or so to somewhat of months, depending on pattern/dividend ect ect). So I read a few books (special thanks for books from Benjamin Graham). opened an account with some shady cheap broker and started trading. My main goal was to look for stocks with a per share price below their capital per share price. These were not hard to find, but the amount of time invested into finding, reviewing and planning these trades was mind blowing. As I reviewed everything, including (but not limited by) moving averages, ratio’s, dividend, turnover, profit, margin and cash flow among other things. Sometimes it took me a full week to review what price was best to enter or exit a position. Which is bad, because I would miss out on so much trading!
My biggest successes were Seven West Media, an Australian News company, Vanguard Natural Resources, a gas company, Bonanza Creek Energy, a US Oil Company and Slater and Gordon, Australia’ first stock listed law company. These were all companies with a high amount of debt and listed prices below their average per share equity price. Which, in theory, meant huge upside momentum.
However, this took time. I held stocks well over a year to make the money worth its time. I was managing and reviewing these investments so much! Also, I did not have that kind of time anyway and it didn’t pay out as much as I would have hoped. I mean, I would get paid when I sold a stock and that was well over a few month at minimum. I was growing a lot too, but still didn’t make more then my job did.
So I started googling high risk trading and, to no ones surprise I guess, I find Tim Sykes. Ultimately Tim Sykes taught me what to trade. Pennystocks, together with a breakout strategy. This was perfect because I was banking money again in a short amount of time too. Within an hour I would be up USD 100, easy! My dumbest loss was on SINO on November 15, 2016 when I bought at $1.98 (resistance) and sold at 1.75 (support) only to miss out on a fucking USD 11 per share move (notably to USD 17 per share the next day). So what was a USD 120 loss, could have been a USD 7.500 gain!
Anyway, so I was trading breakouts and made nice money, but my pattern started to fail and after a losing streak of well over nine months (apart from DCIX and XNET when block chain went nuts) I wasn’t making any constant gains.
It was at this point I joined Investors Underground. And this service did not disappoint. Okay, I was disappointed that my hero, Tim Grittani, wasn’t part of the service at that point. But I did find so many new traders who were amazing! I found Alex (AT09), Modern Rock, Eric Wood (Elkwood), Michele (Offshore hunter) and Derrick (mile High trader) among other great traders that inspired me and taught me how to trade and taught me new setups. Not only did I learn how to trade short setups, they also taught me how to approach large caps (Something I had no clue about. At this point I was so penny stock biased, I couldn’t even see large cap setups).
In short I have well over 5 years of trading experience and well over 10 years of experience with hedge funds and institutional investors. I’ve seen individuals make $1 million and saw losses of USD 10 million passing eyes that didn’t even flinch.
It is this experience that has formed my own strategy, which I call shorting into dumb money. Which is based on smart money taking profits, yet using sell-offs to profit from.
With every parabolic move, smart money will take their gains at the top (hedge funds, institutional Investors, “market makers” and wealthy individuals). As they are ahead of the market, they create resistance. Eventually a stock will drop, which triggers stops. This is smart money protecting their capital. Eventually the majority will catch up and start selling their positions. This is dumb money panicking and is where I short and profit.
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