Monkey In the Market

Great New Website that I created, with new design. It is all about how to avoid scams and see the truth in the stock market!

Monkey In The Market: http://monkeyinthemarket.wordpress.com

Trading World Is Full Of Lies #2

This is blog post is going to be about all the BULLSHIT that you are told from the brokers and mostly from Retail Traders "Gurus".

Have you aver seen free "trading guru" seminar? Have you ever watched free broker seminar? You should not even bother to listen to them.

The lies and the BULLSHIT that they tell you to get in to the seminar and open a brokerage account with them is designed from the outset to make you trade the way that they want you to trade. This is so they can get paid, not you!

They essentially will teach you how to do these things (or less):

1. Teach you how to trade using THEIR PLATFORM. They will make this "educational experience" presented as colorful as possible with all the tweaks, and most important that it is simple with them, rather than with the others. Learning how to press "buy" button, or "sell" button is not trading. A monkey can do this, are you monkey? If you believed them, that means you are.
2. Convince you that Professional Traders TRADE FOR INCOME. No Professional Traders trade for income. They trade to increase their wealth and look at their brokerage account as an asset that they are growing over their lifetimes. All Professional Traders have a salary, they do not take income from trading! The job of a Professional Trader is to grow their account, as big, as possible. It is only possible to optimize your wealth if you nave take money from your trading account. This is simple common sense for all the Professional Traders. it is a LIE that trading is for income, and whoever tells you that is a complete scum and fraud!
3. Nudging you towards TRADING ON SHORT TERM BASIS. This is my favorite one. This point is always presented as "day trading" with simplistic technical analysis, or around inflection points that the Professional Traders would never use! You'll be watching a video looking at the "Guru" that is showing you when to buy/sell the stock based on the technical breakouts/breakdowns. In fact, that person works for the trading brokerage firm and get's paid for every trade you make. The more trades you make, the more goes in to his/her pocket. They won't tell you to make one trade a month, they want more money from you, so they are selling you this magical world of day trading. They will try to make you believe that following these line charts (indicators) will make you money. If you would take this approach as a Professional Trader you would be fired on the spot. They will also teach you how some numbers/news are important (earnings, contracts, partnerships etc.), the news that are released regularly in the market. Regular releases means regular income from you.
4. By convincing you that their platform IS PROFESSIONAL, and BETTER THAN OTHERS. None of these platforms are used by Professional Traders. The platforms have been built and designed for retail traders. Which provide you with comfort that you will make money with them. Basically this is how Apple also works, and why Steve Jobs succeeded. They design the product that will appeal to the mass audience because of it's color buttons that you want to press, their shape, how they feel, but at the end they are nothing but simple peace of crap. 

If you believe all of the rubbish that you have been told, and if you still believe after reading this- this means that you genuinely are stupid Monkey in the Market. That means that you are part of the 90% traders who lose money, if you haven't started loosing it yet. The reason for that is that you follow all of the things that you are being told by these "trading brokers"/"gurus". 

You are faced with evil that is everywhere nowadays in the trading world. It is time to fight back.

#tradethetruth

Trading World Is Full of Lies #1

Time went buy from the creation of the stock market, when in order to just open a trading account would have to come to the United States and open it themselves, which would take a long while. However, when the internet was introduced multiple online brokerage accounts became on the tip of your fingerprints. However, what has occurred through the period has NOT been a philanthropic move on their behalf...

The intention was, you might think, is to introduce trading to mass audience so that you would be introduced to the infrastructure that would make you money. Nope, you guessed it wrong. It is exactly opposite. The first part about introducing this infrastructure to the mass audience, is true. However, at the same time they ensure that this infrastructure insures to skew the odds in their favor of making money. You might ask "How is that?"

In fact the whole infrastructure designed and created in order to grab a piece of your cash and put it in their pockets. It simply transfers the money from Retail Trader (you) to the broker. Only by beginning to understand this you will see why so many traders loose money. After that you can take some of the approaches (which I will discuss later) that can be taken against it, and not only save you money, but also make some! 

#tradethetruth

Professional Traders vs Retail Traders

     Everybody knows that 90% people loose money in the stock market. However do you know what this combination means "90/90/90"? Have you ever seen this before? This is industry statistic that is always talked about. It stands for 90% of Retail Traders loose 90% of their money with in 90 days. However, the objective of traders is to make money. The main difference is the approach.

     The holly grail for Hedge Fund manager is to grow his fund. For example: manager has $100 million in assets in his Hedge Fund in year one, by year nine he has grown his fund to $1 billion. There will be value in this fund. There is standard industry metric that applies to selling fund. It is 1/10 of the value of the hedge fund. So they will sell that fund for $500 million. So they grow their fund from $100 million to $1 Billion and then sell it for $500 million and walk away- that is considered to be successful Hedge Fund manager. What is the lesson here... Hedge Fund managers use their own money to start and grow the fund, investment bankers do not use their money. So the Retail Trader has things that are in common with Hedge Fund manager. However there is a difference, Hedge Fund manager get's payed income salary, Retail Traders trade for income. This is how Retail Traders work. Let's say they make $10,000 in one month. Then they take out the money that they got for that month and spend it. In second month they loose $10,000 and then they take out some money from their trading account and spend it. So what it comes down to? When they make money- they take out money from their trading account, when they loose money- they take out more money from their trading account, therefore increasing risk. Retail Traders do totally opposite of what professional traders do. You should never ever take income from your retail trading account. It is not an income strategy. If you want an income strategy buy a bunch of stocks with dividend yield and hold them for decade. Go buy a property and rent it out to somebody. Go buy government bond, they will pay you an income. Trading is not for income, and every professional trader knows that. They know that this strategy is not for income, their objective is to grow their account to as big as possible so they can sell the fund. That is why they do not take any money of the trading account, they are reinvesting it because they want to grow their account to as big and as quickly as possible to sell their fund for as much as possible. They make money- reinvest. Loose money- don't increase your risk. The only problem is to misinformation and conflicts of interest that exists in this industry, vast amount of retail traders do not know these strategies.

#tradethetruth

Creating Trading Account

     Creating trading account seems to be a very easy task. However it is not true in my case. Since I am international it is harder for me to create trading account with the broker that is located in the United States, such as: Etrade, Ameritrade, Scottrade etc.There are couple of trading platforms and brokers out there that are worth a look. However if you will be creating an account that will be relatively small you need to look out for commissions, otherwise they will eat up your trading account. Also, many people do not know that there are SEC regulations agains small accounts such as the ones that are less than $25,000. That rule called PDT rule and has a lot of confusion with in the community of beginner traders.

     PDT rule, or as it is also known day trader rule prohibits small accounts, that is to say accounts that have less than $25,000, from making more than three trades per five working days (a week). If you do more than three trades per week your account is subject to being blocked for a month and there is no way that you can make trades during that time. The solution is that to open multiple US accounts, or open an offshore account. For me it is easier to open an offshore account, and I did that with SureTrader. With them I will be able to freely trade more than three times per week. Even though their routing fees and commissions are lower comparing to others $4.95/trade, there is also conflict of interests. What it means is that when you will use market orders they will use the prices to their advantage in order to compensate on such low commission. From that knowledge using their platform Das Trader Pro I will be trading scared, which is a good thing! Trade scared! Otherwise I am looking forward to funding my account, setting up the platform and making my first real trade.

Whether or not this broker will be right for you I leave that for your decision. My goal it to give you information which is valid and credible.

#tradethetruth

Why trading?

     So why trading? In my opinion trading is the fastest way of growing your account. That is right, growing your account and not source of income, nor increase of wealth (about that later). By compounding percentage earned month by moth in steady growing account you can reach limitless gains, and sooner you start sooner you will start gaining. Do you know how many years it will take you to grow your account from $10,000 to $1,000,000 if you will be gaining 2% each month? You will not believe me. It is seven years only. So potentially each one of you can make one million in seven years just by starting trading with such small account as $10K. No other market tool allows you to do that, not even CD's, bonds and of course not even savings accounts with their joking 0.01% gains.

     My goal by starting this blog to provide help to beginner traders with my insight on the stock market and all the things that I am going to be undergoing while creating my trading account, funding it and making my first trade up to a point when I will make millions and maybe start a hedge fund, or open university for traders. Soon I will be creating my account on Profitly.com and post a widget on the side so you can see my verified gains. I will lead this road by example and believe that it is the right way on shady market full of lies and tricksters who want to grab your piece of wealth. I am hoping that by providing details of my own experience and mistakes you can learn and avoid them in this very dark and tricky market. If you have questions along the way, don't afraid to ask them. If you cannot understand something, that means someone else has the same confusion.

     As time will go by I will tell you my opinions about brokers, fees (hidden fees) and much more about the life of retail trader, or as it also called, day trader. In time I will give some insights on the trades that I have made and my picks for future dates with reasoning why they will be on my watch lists on future dates. I encourage everybody to keep learning from others and never stop, as I will to.

#tradethetruth

Disclaimer: All of the information that will be provided on this blog is strictly educational purposes only, I am not accredited investment adviser, nor I will tell which stocks to buy nor sell.