It’s astounding how many lazy people refuse to click the ABOUT tab on this site when they want to know more about me. Instead I get anywhere from one to three dozen daily emails asking me—since I have an answer every email policy, I’m beyond tired of this. Guys, chicos, if you want to know how I got started, what kinds of stocks I trade, how I made so much $ so quickly, my life is an open book—literally–An American Hedge Fund. Hopefully this post can save me a few emails so here’s a quick rundown of my journey and how I’m gonna help you:
-My obsession to become the best tennis player led to a career-ending injury senior year of high school in 1999. Since I’d already gotten in to college early and the doctors orders were to rest, I had nothing to do so my parents gave me control of my $12,415 in Bar Mitzvah gift money to play around with and I opened a discount online brokerage account.
-My parents thought I’d lose everything, but after concluding all the most popular stocks were too expensive / random for me, I became a penny stock day trader and turned my little account into $2 million by the end of 2004 (no leverage used). The first $1 million was pretty much all buying breakouts (I focused on chart patterns, little did I know why the charts were so perfect), the second $1 million was pretty much all short selling (when I discovered their charts were perfect for a reason, manipulation!). (Trades, strategies used and lessons learned are all detailed in my instructional DVD PennyStocking)
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-Due to my success, friends and relatives wanted me to manage their money and since I’d always simply worked from my dorm and living room part-time between classes, I figured I could make millions more if I setup a hedge fund and turned this trading hobby into a full-time business. And, I also wanted to reduce my personal exposure just in case it turned out I wasn’t as smart as I thought I was (my parents made me put $200k away in CDs just in case)
-Despite the bull market, 2003-2006, I continued opportunistically short selling (focused on THIS pattern) earning another few hundred thousand in profits, becoming the top ranked short bias hedge fund (Barclays) by averaging 20%+ per year (next closest fund had -2% annual returns!) and my little fund grew to $3.2 million, with my stake accounting for half of fund assets.
-Wanting to grow my fund /getting too greedy / tired of “small annual profits”, I ignored my trading rules, investing 10% of my fund into one of my friend father’s businesses, CYGT, which appeared to be the next Ticketmaster (having contracts with Universal Studios, AAA, AOL, Harrah’s, Expedia Six Flags, Hershey…). Long story (told HERE)…the company was not all it was cracked up to be and since I’d naively added to the position, it was the sole reason for my fund’s 35% loss from 2006 to 2007 (painful painful lesson, but made me an infinitely better teacher, more devoted to my core trading strategy, wiser, more conservative and cynical).
-Just as CYGT was killing my hedge fund, years of trying to gain exposure paid off as I was featured in dozens of media outlets—all for nothing since I was already stuck in CYGT! Funny thing is when some turned on me mistakenly concluding the public spotlight had hurt my trading, I began to understand what what a joke the media was, especially considering I sent them detailing how I was stuck in CYGT!
-But media got me a starring role in the TV show Wall Street Warriors that became a hit, inspiring tens of thousands of people to wanting to know more about stock trading, hedge funds and basically how they could get rich too.
-Considering my wealth, losses and media exposure stemmed DIRECTLY from the lack of accurate available information about penny stocks, stock trading and hedge funds, I smelled opportunity in not only teaching people how I trade, but in detailing all the manipulative forces at work in these niches—the companies themselves, the media, ANALysts, promoters etc. And that’s where BullShip Press, LLC and this blog came from (one door closes, another one opens basically describes my life which is why I have no problem calling myself the Forrest Gump of finance), DVD, speaking, publishing company
That’s why I went back to my original $12k–not because I lost everything (I’ll be posting detailed audits on the new website)–but because I’m determined to show everyone that with these strategies, it’s possible to turn thousands into million, over time, by using your small size (anything under $10 million is smal on Wall Street1) and all the industry BS to your advantage…and, most importantly, without the use of leverage.
To the people who mistakenly believe I’m a failed trader, ego-driven, trading against the stocks I write about, am lying about whatever, I don’t even know all the conspiracy theories anymore—you’re wrong, sure, there’s plenty of ways I can make a few extra grand, maybe even a few extra hundred grand, but I’ve got much bigger ambitions—I’m gonna open this lying cheating stuffy boring industry up to everyone…because it’s not only fun, it’s profitable, either on a full-tie or part-time basis, whatever works for you, whatever suits your personality best.
The key to doing that is being brutally honest—mainly because nobody else in this industry is willing to be. I’m not here to make friends nor do I have to be some BSing always-polite marketer—I don’t care if I sell any more products, thanks to motivation drawn from all the bastards who are anti-transparency, anti-exposing all the BS, etc, this is my mission in life—and if successful, I’ll create other millionaire traders (how easy would marketing be then!), especially because as you’ll hear me admit again and again, I’m not even that great a trader.
In this niche, stocks do not move randomly, they form definitive patterns from which you can profit–exemplified by my mistake-riddled yet market dominating 21% first quarter performance. Once you understand the underlying variables, there’s soooo many angles from which you can play these stocks, god damn, it’s beautiful!