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