I used to have intermittent success in the stock market, I would have large profits and then I would give it all back and more. I felt like a fat person on a yo-yo diet, temporary exceptional success, losing a lot of weight followed by gaining it all back with extra new pounds on top. I was extremely frustrated by my inability to hold on to the profits I got from the market.
I switched from trading stocks to options. I thought using options would change things for the better since they increase leverage and reduce risk, or so I was told. This didn’t help me, I was disappointed to find that nothing has changed. I still lose after I earn some decent income from the markets.
It happened to me three times at least, I would earn 30% up to 50% profit on my investment in a short time, two or three months and lose it all in the following months. Using options only made the swings worse, I could earn more than 200% on some investments only to lose it all back in a few week time.
Friends and family used to ask me how my tradings are going and if I had any tips for them. I was so ashamed I had to avoid the subject. I really wish they would respect me for my achievements in the stock market and I had nothing to show for it.
The most embarrassing incident happened in a ski resort in France. It was a couple of years ago and I was with Ori, Ron and Jack – good friends of mine for a week away from our wives and kids, having fun as little kids. In the evening at the mediterranean club we talked to some other guests and it happened again! One of the other guests said he works for an investment firm and my good friend Ron jumped in and introduced me as the stock market expert among us. Ron didn’t have any bad intention, he was proud to be my friend and wasn’t aware of my sensitivity to the subject. I knew what was coming…
The other guy asked me what are my success statistics and I mumbled some vague answer about it not being conclusive and such.
That was it! I had enough! I was so disgusted with myself, I couldn’t look in the mirror. Here I am, a smart person, a Mensa actually (The high IQ society) and I knew you don’t have to be that smart to profit in the stock markets, so what the hell is wrong with me??
I wanted to crack the code and started investigating the subject with great motivation and determination. I bought books, went to seminars, both locally and across the ocean. I spent more than $13,400 on my research, not including flights and hotels and went through many incomplete advice and some totally wrong advice I had to discard. But from time to time, I would unearth a real gem and save it in my notebook with the other gems I found along the way.
It turns out as not so complicated as I initially thought it would be. But I did encounter some major surprises along the way. To be successful in the stock market, and it doesn’t matter wether you use stocks, options, futures or forex, you need a rare combination of habits, yes habits. You don’t need to have a special gift from the gods of fortune to be a successful trader or investor, you can train yourself to become one.
I summarized all I learned throughout the years and it is all in an easy to digest 100+ page ebook.