Harnessing the Power of In and Out Trading: Unveiling the Profit Boosting Strategy through Margin Efficiency

 

Harnessing the Power of In and Out Trading: Unveiling the Profit Boosting Strategy through Margin Efficiency

leo-idea-228x300 Harnessing the Power of In and Out Trading: Unveiling the Profit Boosting Strategy through Margin Efficiency
Thinking Outside the Box

wp-content-uploads-2013-01-robertburan1 Harnessing the Power of In and Out Trading: Unveiling the Profit Boosting Strategy through Margin Efficiency

 

 

 

By Robert Buran

A Deep Dive into In and Out Trading

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In and Out Trading

In and out trading, a well-known strategy in the stock market, typically refers to a trading style where a stock or security is bought and sold within a notably short period. However, it’s important to clarify that ‘In and Out Trading’ isn’t synonymous with day trading. The definition of ‘short period’ can indeed extend beyond a single day. A trader leveraging this approach aims to pocket a profit within this brief time frame and promptly exits the position, implying more frequent trading actions compared to traditional buy-and-hold strategies.

Short-Term Stock Trading: A Proven Approach Over Four Decades

In my terminology, In and Out Trading is essentially short-term stock trading, a strategy I’ve employed successfully for over 40 years. My typical approach involves holding trades for two to three days, without resorting to day trading. It’s conventional wisdom to label in and out trading as risky, but my experience begs to differ. I firmly believe that In and Out Trading mitigates risk by restricting the time a trader is exposed to potential adverse market movements.

Margin Efficiency: A Groundbreaking Concept for Trading Stock Markets

This article explores the In and Out Trading strategy, comparing the relative effectiveness of long-term versus short-term strategies for trading stock markets. Furthermore, it introduces an innovative concept I’ve coined as “margin efficiency.” This principle unravels how relatively straightforward short-term, in and out trading systems can attain impressive profit levels while concurrently reducing risk.

My Journey Through the Trading Landscape

My trading journey started in 1984. Much like many beginners, my initial ventures resulted in a loss of a few thousand dollars. However, by 1985, I had begun to grasp the nuances and managed to make a few hundred dollars in my second year of trading. By 1986, my earnings were close to the six-figure mark. From that point onward, there was no looking back. I’ve handled accounts as small as $3,000 and as substantial as $6,000,000 (refer to my article ‘Journey to Big Trading: Scaling from $6000 to Multi-Million Dollar Trade’). The common thread across these accounts was my use of short-term trading strategies.

The Unraveling of a Surprising Success

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Surprising Success

Interestingly, I found my success somewhat puzzling. I was working in the public schools then and had no formal academic background in finance, mathematics, statistics, or computer programming. I implemented a straightforward breakout system that had me entering one day and exiting the next, bypassing day trading. Although this system is far from rocket science, with several published variations available, it proved to be incredibly effective. This strategy didn’t seem overly risky, but it led to annualized gains surpassing 100% year after year. Astonishingly, I was outperforming top professionals using a system built with arithmetic skills acquired in 5th grade. This kind of performance was a direct contradiction to conventional beliefs surrounding performance and risk.

The Genesis of the Margin Efficiency Theory

Over time, my experiences with in and out trading led me to develop theories about market behavior and money management. I aimed to understand why this simple short-term breakout approach to trading was performing so well. In this article, I am going to discuss one of the most crucial of these theories, my theory of ‘margin efficiency’.

Illustrating Margin Efficiency Theory: A Simple Study

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Illustrating Margin Efficiency Theory: A Simple Study

To elucidate my theory of margin efficiency, I will refer to a straightforward study I conducted on a single market over a 34-day period. I’m revisiting data from 14 years back in 2023 because that’s when I began to solidify these concepts. I must stress that studying just one market for only 34 days doesn’t yield statistically significant findings; this study serves purely for demonstration purposes to explain my theory. The study itself doesn’t prove anything but is used to illustrate my theory of margin efficiency.

For the study, I compared two systems I will simply call LONG TERM BREAK OUT SYSTEM and SHORT TERM BREAK OUT SYSTEM. I chose the NASDAQ market SEED, which represents Origin Agritech Limited, as the subject of this study. The test period spanned over 34 trading days, from 11/24/09 to 01/12/10. Following my money management strategy, both systems bought and sold 80 shares for all trades, designed to limit the cash margin requirement to approximately $1,000 per trade. During this period, SEED fluctuated between approximately $6 and $14.50 per share, making it a highly volatile market and thus suitable for my trading strategies.

Here are some numbers that emerged from this study:

  1. Long Term break out system
  2. Short Term break out system

The study duration was from 11/24/09 to 1/12/10 (34 trading or “Study” days).

The LONG TERM SYSTEM made one trade lasting 34 days: It bought 80 shares of SEED on 11/24/09 at $11.74 (cash margin requirement $939). It sold the 80 shares on 1/12/10 at $14.14.

Unveiling Margin Efficiency: Profits and Calculations

The LONG TERM SYSTEM achieved a net profit of $192. After deducting $10 for transaction costs, the ACTUAL NET PROFIT becomes $182.

On the other hand, the SHORT TERM SYSTEM completed six trades, buying and selling 80 shares each time. Each trade lasted two days, buying at an average price of $12.00 (average cash margin requirement was $960). There were three winning trades totaling $451 and three losing trades costing $259.

The net profit was $192. Subtracting $60 in transaction costs gives an ACTUAL NET PROFIT of $132.

To evaluate the effectiveness of these strategies, I devised a formula for calculating margin efficiency (ME):

Margin Efficiency (ME) = ((Study Days / Days in Market) * (Actual Net Profit/ Cash Margin)) * 100

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Reliable Profits from Short term Stock Trading

This should be read as the number of Study Days DIVIDED BY the number of days the trade is in the market, TIMES the Actual Net Profit DIVIDED BY the required cash margin (price times the number of shares), TIMES 100.

Plugging in the numbers for each system, we get:

LONG TERM SYSTEM: ME = ((34/34) * ($182/$939)) * 100 = 19.38

SHORT TERM SYSTEM: ME = ((34/12) * ($132/$960)) * 100 = 38.91

Interestingly, the ME for the SHORT TERM SYSTEM is twice what it is for the LONG TERM SYSTEM. Theoretically, this implies that a portfolio with an ME of 39 should generate twice as much profit as a portfolio with an ME of 19.

To grasp this better, let’s return to our study. The LONG TERM SYSTEM made $182 in 34 days with no idle days. For those 34 days, a trader could only engage with ONE market using the allocated cash margin.

In contrast, the SHORT TERM SYSTEM made a slightly lower profit of $132 but was only active in the market for 12 days. Therefore, within the 34-day study period, there were 22 days where the system was idle, allowing other markets to use those free days without increasing the margin requirement.

Capitalizing on ‘Blank Days’: Short-Term vs Long-Term Systems

With the SHORT TERM SYSTEM, those blank days can be filled with short-term trades from other markets. This approach can potentially generate much higher profits within the same timeframe, compared to the LONG TERM SYSTEM, without the need to increase our margin requirement. So, how much more can we earn?

If the LONG TERM SYSTEM generates $182 in 34 days, it’s making about $5.36 per day. On the other hand, if the SHORT TERM SYSTEM makes $132 in 12 days, it’s making approximately $11.00 per day.

Should we fill in those 22 blank days with trades from other markets that also yield $11 per day, we could add $242 (22 days * $11 per day) to our net profit of $132. This would total net profits for the SHORT TERM SYSTEM to $374. As a comparison, the LONG TERM SYSTEM only made $182. It’s important to remember, however, that these figures are theoretical, as market conditions seldom perfectly align to fill in these blanks.

Another way to compute a theoretical value is by utilizing the ME numbers we already calculated. If we divide the SHORT TERM SYSTEM ME of 38.91 by the LONG TERM SYSTEM ME of 19.38, we get 2.01. By multiplying our original SHORT TERM SYSTEM profit of $132 by 2.01, we arrive at $265.

Therefore, we now have two theoretical projections for the SHORT TERM SYSTEM’s profits over a 34-day period: $265 and $374. The actual result likely falls somewhere in between, as it’s improbable that all blank days will be filled by markets as volatile and high-performing as SEED.

Implementing Short-Term Trades into Multiple Markets

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This system effectively utilizes the power of in and out trading and leveraging margin efficiency to boost profits and reduce risks.

How then do we fill in these blank days with trades from other markets? This question starts to delve into the theory of money management, which is too extensive and complex to cover in this one article. Nevertheless, the straightforward answer is that I engage in trading across a wide array of markets. As of 2023, I’m active in over 50 markets, ensuring all the ‘blank’ days are utilized. Moreover, with a SHORT TERM SYSTEM, I can trade in far more markets using the same amount of capital than I could with a LONG TERM SYSTEM. This approach not only maximizes my returns but also reduces risk via market diversification.

To put it simply, this is the essence of in and out trading. The short-term in and out approach works because it is margin efficient. My theory of margin efficiency partly elucidates why these uncomplicated, short-term breakout trading systems can deliver high returns with limited risk.

When devising a trading strategy, you should seriously consider adopting a short-term trading approach, which I simply refer to as Short Term Stock Trading. By combining this with high margin efficiency, you can mitigate your risk while reaping significant returns on your investment.

As of 2023, I’ve incorporated these concepts I developed many years ago into my current trading system, JORDI FUSION. This system effectively utilizes the power of in and out trading, leveraging margin efficiency to boost profits and reduce risks.




 Harnessing the Power of In and Out Trading: Unveiling the Profit Boosting Strategy through Margin Efficiency


Monday July 3, 2023, Today Stock Market

    • Today Stock Market

    • Welcome fellow stock traders!  E-MAIL ME AT:   bobburan@juno.com   with questions.  Download nine years of trading performance at the very bottom of this page.  I am Robert Buran and I update Today Stock Market every trading day.  I utilize Short Term Stock Trading wp-content-uploads-2013-03-robertburan Monday July 3, 2023, Today Stock Marketstrategies along with  automated stock trading software and short term stock trading systems to take trades everyday in the U.S. stock market including the NYSE, NASDAQ, and AMEX. I post my trading  positions here along with images and charts.  I include a video of my stock market report on this page every day.

Monday July 3, 2023

Dow opens -78  and our open trade improves  (click to enlarge)

OPEN-300x169 Monday July 3, 2023, Today Stock Market

 

20 minutes in  (click to enlarge)
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The Dow closes +11 and this is what we closed out:  LTCH +2400, RCUS +1425, ADES -2550, NAUT +1567, YEXT -200, TMPO +1300, RXT +5550, CXAI -2396, AI -1980, AAOI -1710
TOTAL = + $3,406
This is what we are holding (click to enlarge)

CLOSE-300x168 Monday July 3, 2023, Today Stock Market

 
twitter Monday July 3, 2023, Today Stock Market

Investment Strategies: Understanding the Psychology of Successful Stock Investors

Investment Strategies: Understanding the Psychology of Successful Stock Investors

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The Psychology of Successful investment.

wp-content-uploads-2013-01-robertburan1 Investment Strategies: Understanding the Psychology of Successful Stock Investors

 

 

 

By Robert Buran   

A Diverse Spectrum of Stock Investors

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A Diverse Spectrum of Stock Investors

Stock investors embody a rich tapestry of different personalities, backgrounds, and approaches to trading. Some are extraordinarily successful, while others struggle to find their footing. The question then arises: how does the psychological profile of these disparate groups distinguish between the winners and the losers?

Before I ventured into the world of professional trading, my background was rooted in psychology. Naturally, I found myself intrigued not only by the explicit characteristics of stock investors but also by the underlying psychology that motivates their investment decisions. I yearned to delve deeper, to decipher what separates successful stock investors from their less successful counterparts.

A Case Study: The Rise and Fall of John MacAfee

Even among wealthy stock investors, the road to success is fraught with potential pitfalls. A notable example is John MacAfee, the pioneering mind behind the MacAfee anti-virus Software Company. A brilliant entrepreneur, MacAfee seemed to have the Midas touch in his business endeavors. However, about 15 years ago, his fortunes took a turn for the worse.

Eager for more autonomy, MacAfee sold his company, amassing a net worth of roughly 100 million dollars. With this sizable fortune, he set his sights on the world of investing. Unfortunately, his investments turned sour.

The Common Pitfall of Delegating Investments

MacAfee’s downfall underscores a common misstep that many wealthy individuals make. Although he demonstrated a fierce independence in his business endeavors, he relinquished control when it came to investing his hard-earned millions. Rather than embracing “do it yourself” investing, he entrusted his fortune to so-called “financial experts”, brokers, and financial advisors. In MacAfee’s case, one piece of advice led him to invest millions into bonds linked to Lehman Brothers.

As most people are aware, Lehman Brothers was one of the first casualties of the 2008 financial crisis. Its collapse sent shock waves through the global economy, and even after 13 years, many individuals, MacAfee included, were still grappling with the repercussions. The “expert opinion” had failed him, highlighting the dangers of turning over investment decisions to others.

A Misstep in Real Estate Investment

MacAfee’s financial woes did not end with ill-fated stock investments. He was also caught in the whirlwind of the 2008 real estate crash. Much like stock investors, real estate investors of the era were assured their investments were unassailable. They were led to believe that property prices were destined only to rise, a fallacy perpetuated by financial advisors, brokers, and government officials. Countless Americans, including MacAfee, fell prey to this misconception.

On June 23, 2021, MacAfee was found lifeless in a Spanish jail, having reportedly taken his own life. His unexpected demise ignited a flurry of speculations, with some speculating foul play.

Irrespective of the circumstances, MacAfee’s end was an unfortunate one. At the time of his death, his net worth was estimated at four million dollars, a significant decrease from the $100 million he held at his peak. This marked financial decline was largely a consequence of his decision to outsource his financial decisions.

While it is conjecture, one can’t help but question whether his drastic financial losses played a part in his tragic end. Moreover, would the course of his life have been different had he taken charge of his own finances?

The Psychology Behind Investment Decisions

So what psychological aspects of investment strategy contributed to John MacAfee’s decline, and the similar fate of countless others during the 2008 financial crash?

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Making My First Half Million

One potential factor is independent thinking. I delved into this concept in my book, “How I Quit My Job and turned $6,000 into a Half Million Trading.” I started with a meager $6,000, borrowed through a chattel mortgage from my bank, against everything I owned. This decision ran counter to conventional wisdom and almost all financial advice I had received.

Through approximately 10,000 individual trades, I managed to achieve nearly 200% annual returns for six consecutive years. Despite needing to withdraw money for living expenses, I ended up amassing half a million dollars in six years, from an initial investment of just $6,000. The story of this journey, backed by my broker statements, caught people’s attention.

I’m not sharing this to boast, but to illustrate how this journey made me contemplate the psychology of investment, risk, return, and the often misguided “expert opinion”.

I was far from an expert. My investment strategy was born on a yellow legal pad during a ski trip, requiring nothing more than a fifth-grade level of math to comprehend. I wasn’t an expert, but in many ways, I was miles ahead of those who claimed to be.

Four Key Strategies for Stock Investors to Enhance Returns and Performance

I won’t attempt to recapitulate my book in this article, but I can share four vital strategies that fueled my success as an investor:

  1. Develop your own strategies: I disregarded nearly all advice from others and charted my own course. My methods frequently contradicted the entrenched principles of financial trading.
  2. Embrace short-term investments: I never held onto an investment for more than three days. This approach insulated me from severe losses; if a particular stock took a nosedive, I was able to exit while I still had funds left. There’s significant safety in short-term trading.
  3. Diversify your portfolio: I traded across numerous markets, understanding the importance of diversification. While one or two investments may falter, it’s unlikely that all will stumble simultaneously. I can vividly recall a day when I lost $18,000 in bonds, but simultaneously earned $24,000 in stocks. Diversification was my safeguard.
  4. Be a self-reliant investor: I conceptualized my strategies, executed my trades, and accounted for my finances independently.

Among these, the most crucial strategy is self-reliance. There’s an inherent “lone wolf” nature required for successful stock investing. While contrarians might not excel as employees or partners, they’re typically superior investors. Stock investment often rewards those with contrarian mindsets, while punishing those who follow the crowd.

Adjusting Strategies and Continuing to Grow

Today, my investment journey is less thrill-inducing. I don’t leverage my investments as heavily as I once did, and I exclusively buy stocks, avoiding short-selling altogether. As of 2023, the odds still favor rising prices. However, diversification remains a staple in my strategy, and I currently take trading signals from over 50 diverse stock markets.

My trading systems, though honed through continuous programming, don’t differ significantly from what I devised on a yellow legal pad during a ski trip a quarter-century ago. The old tactics continue to serve me well. I still adhere to the three-day holding period rule.

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Climbing to Greater Profits.

Sharing my daily trades on this website has become an enjoyable routine. I maintain a low-profile approach, catering to small investors. While I don’t profit daily, I generate earnings most months. This website is my retort to the misguided advice that ensnared John MacAfee.

To attain success, stock investors need to tune out the noise and sidestep the investment snares that often come from heeding others’ advice. Successful stock investing calls for a do-it-yourself mindset. Simplicity and logic are still powerful tools in crafting investment strategies. “Lone wolves” continue to profit. Diversification is a real safeguard. Short-term trading can boost profitability while minimizing risk. If you want to succeed as a stock investor, design your own strategy, disregard the ‘experts,’ and take charge. DO IT YOURSELF!




 Investment Strategies: Understanding the Psychology of Successful Stock Investors


Friday June 30, 2023, Today Stock Market

    • Today Stock Market

    • Welcome fellow stock traders!  E-MAIL ME AT:   bobburan@juno.com   with questions.  Download nine years of trading performance at the very bottom of this page.  I am Robert Buran and I update Today Stock Market every trading day.  I utilize Short Term Stock Trading wp-content-uploads-2013-03-robertburan Friday June 30, 2023, Today Stock Marketstrategies along with  automated stock trading software and short term stock trading systems to take trades everyday in the U.S. stock market including the NYSE, NASDAQ, and AMEX. I post my trading  positions here along with images and charts.  I include a video of my stock market report on this page every day.

Friday June 30, 2023

Dow opens + 178  and our open trade is only about half as bad as yesterday  (click to enlarge)

OPEN-20-300x164 Friday June 30, 2023, Today Stock Market

 

RXT  (click to enlarge)
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RXT  (click to enlarge)
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Fading Markets again  (click to enlarge)
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The Dow closes +289 and this is what we closed out:  MEDS -6220, IMTX -160, SDA +337, AGBA -2100, NAUT +2970, PLAY +60, AFRM -1185, TLS -577
TOTAL = – $6,875
This is what we are holding (click to enlarge)

CLOSE-21-300x168 Friday June 30, 2023, Today Stock Market

 
twitter Friday June 30, 2023, Today Stock Market
 

High Returns and High Yawn: The Unexpected Monotony of Making 50 to 100 percent Returns on Your Investments

High Returns and High Yawn: The Unexpected Monotony of Making 50 to 100 percent Returns on Your Investments

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Unexpected Monotony of Trading for a Living

The thrill and lure of trading often lead traders astray. Successful trading and high return investing, contrary to popular belief, are often less about excitement and more about enduring long stretches of monotony. Indeed, boredom becomes an occupational hazard, an inevitable part of the journey towards high returns.

Embracing Boredom as Part of the Trading Process

The experience of sitting in front of the computer, observing market movements for hours on end can feel like a kind of sensory deprivation. The process can be equated to the description by a police officer about his late-night shift in a big city – eight hours of pure boredom punctuated by a minute of sheer terror. Just as his eyes were always peeled for signs of danger, a trader’s eyes are always peeled for signs of profitable opportunity.

Navigating Through Stormy Market Days

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Persisting Through Market Volatility

Take, for instance, the harrowing month of March 2023. Having found myself in 16 unfavorable positions, I witnessed the Dow Jones plunge over 400 points the next day. The plummeting figures were a massacre to my open trades, causing a very nasty loss of nearly $24,000. While it was a relief to be rid of these dreadful positions, the free-falling market offered little solace. I was acutely aware that the rest of the day held little promise for further profitable positions.

Persisting Through Market Volatility

Despite the bleak outlook, I ventured into two trades – one with 3D Systems Corp (DDD), the other with Callon Petroleum Company (CPE). DDD’s price seemed too steep to climb further, and as CPE’s value dipped into a negative $3,000, I braced myself for another day of disappointment. The markets seemed dismal, and I sought distraction in YouTube videos, only occasionally casting a glance at the plummeting figures.

 

The Thrilling Turn of Dull Days

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This Sleepy and Bored Lion Patiently waits for an Opportunity to Chase an Antelope; much like a trader waiting for a good trade.

My attention was brought back to the screen from my YouTube distraction when DDD exploded and CPE swung from a negative $3,000 to a positive $2,000. As CPE soared over $7,000 in profits, I was captivated. The dreary, monotonous day took an unexpected turn and injected a dose of excitement and renewed hope. Although I still recorded a loss for the day, the successful trades were morale boosters.

Trading Amidst Monotony: The Path to High Returns

Considering my trading performance from January to March 2023, I was still ahead of some top fund managers. Aiming for a 50% to 100% annual return was still within reach. However, maintaining focus during the mundane stretches was crucial.

Gleaning Insights from Hours of Screen Time

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Gleaning Insights from Hours of Screen Time

Scanning the stock markets isn’t always thrilling, but after clocking in two or three thousand hours, I’ve gained invaluable insights into market dynamics. My article, The Subtle Art of Manual Trading, delves into this further. Interestingly, about 70% of my profits come from just 5% of my trades, indicating that 95% of my trades—and my time—are rather dull.

The Highs Amid the Lows: The Reality of Successful Trading

It’s essential not to let the monotony lull me into complacency. Trading opportunities are fleeting, often requiring swift action within seconds. Despite the occasional boredom, staying alert during my 6.5-hour trading window is non-negotiable. This routine may get tiresome, but the reward—annual returns ranging from 50% to 100%—is substantial. No job surpasses trading in this aspect. To reap substantial profits, one must endure the lengthy periods of boredom punctuated by fleeting moments of intense action.

Building Wealth Through Consistent High Returns

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My first trip to a half million dollars.

Achieving 50% to 100% annual returns over five years can significantly increase your wealth—irrespective of your starting capital. Years ago, I authored a book titled “How I Quit My Job and turned $6,000 into a Half Million Trading”. (CLICK THE IMAGE TO THE LEFT TO ENLARGE) As an unknown entity in the market then, I provided broker statements as proof that I had successfully made close to 200% annual returns for six consecutive years. Moreover, I had to rely on some of this income for living expenses, and so I was unable to leverage the full potential of compounding.

Many may perceive this as a stroke of luck, a flash in the pan when market conditions were different, or a feat only achievable with a small capital that would diminish with larger sums. But is that really the case?

Achieving High Returns Regardless of Capital Size

While managing portfolios for several years, I executed thousands of trades and pushed close to two billions of dollars through the market place. Details of my journey are shared on my website, Journey to Big Trading: Scaling from $6000 to Multi-Million Dollar Trades . Interestingly, despite managing vast sums, I still achieved over 100% returns.

The significant revelation I want to highlight is that, irrespective of the market conditions or the trading capital involved, most trading days were monotonous. Trading, for the most part, is a dull affair.

Trading Insights from Decades of Market Observation

After examining various markets for nearly forty years, I’ve reached two significant conclusions:

  1. Markets move sideways 85% of the time rather than in an upward or downward direction.
  2. Applying my trading strategies, about 70% of my profits arise from just 5% of my trades.

By extrapolating these figures, one can infer that about nine out of ten trading days will be uneventful and monotonous.

The Grind of Successful Trading

Stock-Market-Movement-6-300x249 High Returns and High Yawn: The Unexpected Monotony of Making 50 to 100 percent Returns on Your Investments
Graph of my six year journey to my first half million dollars.

A proficient trader is one who consistently adheres to their trading rules day in and day out. When I share with aspiring traders the real potential for an average individual to build wealth from a modest beginning, their interest piques— the concept seems straightforward.

However, the routine nature of trading often leads to a high dropout rate among these hopefuls. They expect a thrilling journey, but what they encounter is a mundane activity. I regularly remind them of the critical importance of maintaining accurate records (see Stock Market Record Keeping). Every trading day ends with at least 60 minutes of spreadsheet work for me. This isn’t thrilling, but without diligent record-keeping, one cannot hope to excel in trading.

The Dangers of Chasing Excitement in Trading

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Dangers of Chasing Excitement in Trading

One of the biggest mistakes bored aspiring traders make is seeking excitement by deviating from their trading rules. They try to force trades where none exist. From the countless stories I’ve encountered, I can assert that this approach is the fastest route to financial ruin.

A common myth circulated by financial advisors and brokers is the association of high returns with high risk and low returns with low risk.

Demystifying the Risk-Return Relationship

My research has led me to an important understanding: risk and returns are not statistically intertwined. High-return investing doesn’t need to be synonymous with high risk. What does correlate with risk and returns is the number of trades made and the duration for which these trades are held.

For years, I’ve managed to secure high returns with minimal risk, across various market environments. However, achieving this requires me to trade intensely and consistently: day after day, week after week, month after month, year after year. I’ve provided proof of this on my website, where I post my trades multiple times a day. It’s all there for anyone to see – it’s impossible to fake, and it’s incontrovertible.

Finding Fulfillment in Repetitive Success

leo-Success-226x300 High Returns and High Yawn: The Unexpected Monotony of Making 50 to 100 percent Returns on Your Investments
Financial rewards beyond your wildest dreams.

Despite these accomplishments, most days are indeed monotonous. Even achieving high-return investing and making 100% returns annually can be tedious.

If you’re seeking excitement, try skydiving. However, if you want to accumulate wealth and become an exceptional trader, you must commit to years of repeating the same processes over and over again.

But believe me, if you can embrace this pattern, you’ll reap financial rewards beyond your wildest dreams.




 High Returns and High Yawn: The Unexpected Monotony of Making 50 to 100 percent Returns on Your Investments


Thursday June 29, 2023, Today Stock Market

    • Today Stock Market

    • Welcome fellow stock traders!  E-MAIL ME AT:   bobburan@juno.com   with questions.  Download nine years of trading performance at the very bottom of this page.  I am Robert Buran and I update Today Stock Market every trading day.  I utilize Short Term Stock Trading wp-content-uploads-2013-03-robertburan Thursday June 29, 2023, Today Stock Marketstrategies along with  automated stock trading software and short term stock trading systems to take trades everyday in the U.S. stock market including the NYSE, NASDAQ, and AMEX. I post my trading  positions here along with images and charts.  I include a video of my stock market report on this page every day.

Thursday June 29, 2023

Dow opens – 120 and our open trade jumps to nearly +22 K  (click to enlarge)

OPEN-19-300x169 Thursday June 29, 2023, Today Stock Market

 

ACHR  (click to enlarge)

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Fading Markets again  (click to enlarge)
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The Dow closes +271 and this is what we closed out:  SEEL -900, MMMB +1402, EDIT -570, QBTS -5100, AMC +90, UCAR -369, RGTI -1830, AAOI +360, ROOT +4080, AI -217, MPAA -300, CXAI -990, ACHR +12210
TOTAL = + $7,866
This is what we are holding (click to enlarge)

CLOSE-20-300x168 Thursday June 29, 2023, Today Stock Market

 
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Wednesday June 28, 2023, Today Stock Market

    • Today Stock Market

    • Welcome fellow stock traders!  E-MAIL ME AT:   bobburan@juno.com   with questions.  Download nine years of trading performance at the very bottom of this page.  I am Robert Buran and I update Today Stock Market every trading day.  I utilize Short Term Stock Trading wp-content-uploads-2013-03-robertburan Wednesday June 28, 2023, Today Stock Marketstrategies along with  automated stock trading software and short term stock trading systems to take trades everyday in the U.S. stock market including the NYSE, NASDAQ, and AMEX. I post my trading  positions here along with images and charts.  I include a video of my stock market report on this page every day.

Wednesday June 28, 2023

Dow opens – 120 and our open trade jumps to positive  (click to enlarge)

OPEN-18-300x154 Wednesday June 28, 2023, Today Stock Market

 

15 minutes in  (click to enlarge)
15-minutes-in-2-300x153 Wednesday June 28, 2023, Today Stock Market
Two and a half hours in  (click to enlarge)
2-and-a-half-hours-in-300x149 Wednesday June 28, 2023, Today Stock Market
ACHR  (click to enlarge)
ACHR-300x145 Wednesday June 28, 2023, Today Stock Market
ROOT  (click to enlarge)
ROOT-300x139 Wednesday June 28, 2023, Today Stock Market
The Dow closes -135 and this is what we closed out:  RXT -750, LNZA -2700, MRVL +1045, PLAY +255
TOTAL = – $1,460
This is what we are holding (click to enlarge)

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Tuesday June 27, 2023, Today Stock Market

    • Today Stock Market

    • Welcome fellow stock traders!  E-MAIL ME AT:   bobburan@juno.com   with questions.  Download nine years of trading performance at the very bottom of this page.  I am Robert Buran and I update Today Stock Market every trading day.  I utilize Short Term Stock Trading wp-content-uploads-2013-03-robertburan Tuesday June 27, 2023, Today Stock Marketstrategies along with  automated stock trading software and short term stock trading systems to take trades everyday in the U.S. stock market including the NYSE, NASDAQ, and AMEX. I post my trading  positions here along with images and charts.  I include a video of my stock market report on this page every day.

Tuesday June 27, 2023

Dow opens + 112 and our open trade remains very negative  (click to enlarge)

OPEN-17-300x154 Tuesday June 27, 2023, Today Stock Market

 

Terrible Open  (click to enlarge)
leo-Technical-Analysis-2-227x300 Tuesday June 27, 2023, Today Stock Market
The Dow closes +211 and this is what we closed out:  QBTS -390, LUMN +450, MMMB -1732, MTEK -1050, SFIX -3465, VCIG -11250, MEDS +3300, AFRM -2924
TOTAL = – $17,061
This is what we are holding (click to enlarge)

CLOSE-18-300x154 Tuesday June 27, 2023, Today Stock Market

 
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Stock Market Basics: Dummies Can Be Winners Too

Stock Market Basics: Dummies Can Be Winners Too

leo-Wooden-Robot-226x300 Stock Market Basics: Dummies Can Be Winners Too
Even a Robot made of Wood can learn to Trade Profitably.

Embracing the Simplicity of Stock Trading

wp-content-uploads-2013-01-robertburan1 Stock Market Basics: Dummies Can Be Winners TooI admit it, I’m a novice in the world of stock trading. And in 2023 the mantra of keeping it simple, or KISS as it’s often referred to, is still  a guiding principle in my journey. There’s a vast sea of stock trading ideas out there, and it feels like an army of people are waiting to tell you the “right” way to trade. But here’s some encouraging news – you can tune them out and enhance your chances of stock trading success.

Being a beginner in the stock market isn’t something to be disheartened about. In fact, it might just be your ticket to making real gains in the stock market.

The Fallacy of Financial Experts in Stock Trading

leo-Monkey-Stock-Picking-224x300 Stock Market Basics: Dummies Can Be Winners Too
Bad advice from Brokers and Financial Advisors.

Many highly intelligent individuals work in the stock trading industry. They range from stock brokers to financial advisers. But, let’s uncover a little-known fact. When it comes to the forces causing losses in the stock market, nothing outweighs the advice of these so-called financial experts and brokers.

Interestingly, there seems to be an inverse relationship between a person’s intelligence and effective stock trading. It almost seems like the more intellectual someone is, the better they become at devising strategies that end up losing your money in the stock market.

The performance of stock brokers in selecting profitable stocks is so questionable that it’s often compared to monkeys throwing darts at a page of stock listings in the Wall Street Journal. Therefore, the first lesson for a beginner in stock trading is to take control of your own trading decisions.

The Importance of Making Stock Trading Decisions Yourself

Steer clear of stock brokers in their polished shoes and pin-striped suits. Don’t let the fancy attire fool you – mastering stock trading for beginners involves taking charge of your own decisions. 

Remember, your journey towards becoming a successful stock trader begins with embracing your status as a beginner and learning the basics. This could be your key to unlocking significant profits in the stock market.

The Perils of Relying on Technical Analysis

leo-Technical-Analysis-1-235x300 Stock Market Basics: Dummies Can Be Winners Too
Charting “Wiggly Line Theory.

When navigating the stock market, I suggest giving technical analysis a wide berth. I often dub it as the ‘wiggly line theory.’ This so-called science of market behavior often serves as a promotional tool for a multitude of unscrupulous brokers and financial advisors, who bear more resemblance to snake oil salesmen. Technical analysis enthusiasts aren’t limited to these individuals; they span across trading system vendors and software companies.

Some brokers and market gurus treat technical analysis like a religion, a mysterious doctrine they champion to explain the inexplicable facets of the markets. In my eyes, it’s nothing more than a placebo for the legions of stock market losers. Hence, I’ve coined the term ‘WIGGLY LINE THEORY’ (for a more detailed discussion, see my article on ‘Stock Market Price’).

Advocates of technical analysis often propagate convoluted theories, such as instructing you to purchase XYZ stock when the 15-day moving average intersects the 45-day moving average, and to reap profits next year when the stock enters an ‘overbought’ zone – only if the stochastic endorses the sell signal.

leo-Technical-Analysis-3-228x300 Stock Market Basics: Dummies Can Be Winners Too
Technical Analysis can Drive Traders Crazy.

I call it pure hogwash, financial jargon dressed up to look profound. Technical analysis is no more scientific than studying cloud formations. Both have their aesthetic allure and can appear to have structure and meaning. But, akin to clouds changing shape with the wind, these perceived patterns and meanings dissolve with market fluctuations and are quickly forgotten. Trusting technical analysis to dictate your investments is not a wise strategy.

You might question, “If financial experts employ technical analysis, why shouldn’t I use this methodology for my stock market investments?” Here’s my response: In its most straightforward terms, technical analysis falls short not due to its complex math or flawed formulas, but because it attempts to make sense of largely random data. Short-term stock market movements are primarily random. Regardless of how advanced your analysis techniques are, making sense of random data is challenging. Essentially, it’s a case of garbage in, garbage out. The randomness of the markets thwarts technical analysis, leaving even the most confident and knowledgeable financial experts and traders defeated.

Take solace in your status as a stock market novice. If you can’t understand it, you can easily drown out the noise and avoid unnecessary confusion.

Understanding Market Momentum Through the Lens of a Pool Table

Allow me to draw an analogy from pool to elucidate. In pool, one player initiates the game with a break shot, hitting the cue ball with the cue tip, propelling the ball towards the rack on the opposite side of the table. The cue ball’s final resting place is unpredictable—it could land anywhere on the table, drop into a pocket, or even bounce off onto the floor. However, the original momentum of the ball, from one side of the table to the other, implies a higher likelihood that the ball will come to a stop on the side opposite from where it was initially struck.

leo-Playing-Pool-221x300 Stock Market Basics: Dummies Can Be Winners Too
Understanding Market Momentum Through the Lens of a Pool Table

This theory is readily transferable to stock market movements. Let’s first define a “significant price movement” and label it as the “cue ball condition.” In our hypothetical market, the “cue ball condition” is satisfied if the price elevates by five dollars. Let’s assume that a market closes at a specific price on Monday. On Tuesday, the market meets the “cue ball condition” by escalating five dollars, so we decide to buy at that price. Applying the earlier discussed market movement theory, we opt to consistently sell our Tuesday-acquired positions at the opening on Thursday.

So, what’s the outcome? Over time, we’ll see profits, with approximately 55% of our trades turning out to be successful. But why?

By initially identifying significant momentum, we effectively turn stock market price movement into a cue ball hurtling towards the opposite side of the pool table. Although there’s no guarantee that the ball will always land on the other side of the table, momentum theory suggests it’s more probable than it bouncing back. In a similar vein, a stock that meets the “cue ball condition” on Tuesday is more likely to open higher on Thursday. If we sell at this point, there’s a high chance we’ll make a profit.

Personal Experience: A Testament to the Theory

You might ask, “How can you be sure?” My confidence comes from testing this elementary idea extensively and executing similar strategies thousands of times. In one two-year span, while dealing with around two and a half million dollars, I executed about 10,000 trades and moved millions of dollars through the marketplace, yielding around five million dollars in profits.

Interestingly, I didn’t use a trading system that was 95% accurate. Instead, I relied on a straightforward system based on market momentum theory, which succeeded about 55% of the time and failed around 45% of the time. Acknowledging the randomness of short-term stock market price movement, I knew 55% was about the best accuracy ANYONE could realistically achieve. I accepted this 55% accuracy rate, which led to nearly 100% annual returns on the funds invested and nearly five million dollars in profits over two years.

The Joy of a 5% “House Advantage”

So, a 55% accuracy rate isn’t bad at all. If you can trade consistently with 55% accuracy, you have a “house advantage” of 5%. This means that for every $100 you push through the market, you’re going to make $5. It’s akin to owning your own casino, where YOU ARE THE HOUSE. (See my article, Is Investing in the Stock Market Gambling?)

Additional Guidelines and Strategies

Now that we have a robust theory of market movement that can potentially benefit us stock market beginners, let’s add a few more crucial rules and strategies.

  1. Mechanical Trading System: With this theory in hand, it’s time to develop a mechanical trading system and commit to following it for at least one year. (See my article, Introducing JORDI FUSION )
  2. System Programming: Implement your system into a program that can run on a computer. As a stock market beginner, let your computer do the thinking for you. You don’t need to understand technical analysis; you simply need to trust and follow your computer. You don’t even have to think about markets; just execute the orders your computer instructs you to place. (See my article, Introducing JORDI FUSION )
  3. Diversify: Spread your investments thinly across many markets. We follow 96 markets and are sometimes invested in as many as 35 at a time. Market diversity can safeguard you from abnormal price movement, a common risk of trading in unpredictable markets.
  4. Two to Three Days Trade Duration: Limit your trades to two or three days. Just like a cue ball struck and brought to a stop, the move is short-term, as is stock market price movement based on momentum theory and probability. Momentum theory often concludes by day 3, sometimes earlier. There’s significant safety in limiting your trades to two or three days. You’ve surely heard tales of people losing everything in the stock market. Let me reassure you that the only people who lose everything are those who let brokers make their trades for them and refuse to sell their stocks. By making it a rule to ALWAYS exit after two or three days, you avoid becoming a stock market casualty. 

So, stock trading for beginners might just be the path to follow. Disregard the experts, trade simple concepts you understand, and let your computer do the thinking. By adhering to these rules for stock trading for beginners, we can potentially outperform Wall Street and render “the suits” obsolete. Stock market beginners can indeed be wealthy!




 Stock Market Basics: Dummies Can Be Winners Too


Monday June 26, 2023, Today Stock Market

    • Today Stock Market

    • Welcome fellow stock traders!  E-MAIL ME AT:   bobburan@juno.com   with questions.  Download nine years of trading performance at the very bottom of this page.  I am Robert Buran and I update Today Stock Market every trading day.  I utilize Short Term Stock Trading wp-content-uploads-2013-03-robertburan Monday June 26, 2023, Today Stock Marketstrategies along with  automated stock trading software and short term stock trading systems to take trades everyday in the U.S. stock market including the NYSE, NASDAQ, and AMEX. I post my trading  positions here along with images and charts.  I include a video of my stock market report on this page every day.

Monday June 26, 2023

Dow opens +9 and our open trade remain negative  (click to enlarge)

OPEN-16-300x155 Monday June 26, 2023, Today Stock Market

 

45 minutes in  (click to enlarge)
45-minutes-in-1-300x150 Monday June 26, 2023, Today Stock Market
The Dow closes – 13 and this is what we closed out:  MPAA -1872, MBOT -907, VERA +1455, UCAR -7776, BIG +2418
TOTAL = – $6,682
This is what we are holding (click to enlarge)
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