My name is Robert Buran and I live in Reno Nevada. I was born on September 14, 1943 in Madison Wisconsin. I graduated from Madison West High School in 1961. I earned a Bachelors degree in English and Spanish, and a Master’s degree and EDS in school psychology, all from the University of Wisconsin. I practiced psychology in Alpena Michigan and Redlands California for about 15 years. I left psychology and became a full time commodities futures trader in 1988.
I have been a trader and TradeStation programer for over 20 years. My stock trading systems are outside the box and I post them on the web every day.
I am a single dad, age 72, and raise my only child, a 14 year old gifted male 9th grader, unassisted.
Simple Stock Trading is the key to making the big money.
The randomness of short term stock behavior can only be tamed with simple trading systems using very limited parameters; trading and making money is easier than you think.
KEEP IT SIMPLE STUPID.You have probably heard of KISS, keep it simple stupid. When it comes to stock trading no advice could be better. In fact I am of the opinion that simple stock trading is the only way you can consistently make money in the stock market.
If you get the chance you should read my longer article, How to Trade. In that article I tell about a brilliant engineer who believed he could write a trading formula that could accurately predict all market movement. He anticipated that the formula would run about 50 pages in length.
The engineer was not successful. The problem is that markets are not perfect and in fact most short term stock movement is random. The most sophisticated formulas cannot predict random price behavior. It is garbage in and garbage out. You may wish to read my longer article, Stock Market Price.
So to deal with markets that are predominantly random you need to use formulas that are very simple with limited parameters.
EXAMPLE OF A SIMPLE STOCK TRADING SYSTEM
Let me give you an example of a stock market trading system with few parameters. At the close of a market day you take the LOW of the day and subtract it from the HIGH of the day. Next you take half of that value and add it to the CLOSE. So let us say that on Monday WUZOO makes a high of 20, a low of 10 and closes at 14. Then we will subtract 10 from 20 to get 10 and take half of that to get 5. Then we will add 5 to 14 to get 19.
The number 19, (.5(H-L)) +C, is the market price to buy on Tuesday. If the buy price is hit on Tuesday you hold the position until the open on Thursday and then you sell it. That’s it. There is nothing more to this simple system with the most limited number of parameters.
Then I tested this simple system. I randomly selected four markets from the top of my list of traded markets that are arranged alphabetically. The four markets I selected were ADCT, ADSK, AMD, and ABGX.
I tested each market using this simple trading system for one year. I used a formula that commits $10,000 to each trade, hence you buy 2000 shares of a stock trading at $5.00 and you buy 200 shares of a stock trading at $50.00 etc. I tested ADCT, ADSK, and AMD from mid January 2009 to mid January 2010. As a check against correlated markets I tested ABGX from mid August 2000 to mid August 2001.
In the real world of stock market trading and trading on margin you could probably trade all four of these markets at the same time with about $10,000 in your trading account. Furthermore it is unlikely you would ever get a margin call on a trading system that is out of the trade on the open of the third day. By the time the margin clerk calls you are out of the trade.
This is the net profits from each market: ADCT $2,376, ADSK $2,401, AMD $4,308, ABGX $7,299.
If I put the numbers for all four markets together this is what they look like:
Gross profit = $35,604
Gross loss = $19,219
NET PROFIT = $16,385
NET PROFIT AFTER TAKING OUT $50 PER TRADE FOR TRANSACTION COSTS = $10,835
Number Trades = 111
Number win = 72
Number loss = 39
Percent profit = 65 %
Average Trade (win loss) = $148
MAX intraday drawdown = -$2,848
SIMPLE STOCK TRADING CAN MAKE YOU RICH
So the bottom line is you are making conservatively $10,835 and that translates into over 100% annual return on your investment of $10,000.
If you compound $10,000 for five years you get $1,208,221
If you can commit yourself to sitting in front of computers for five years you can become rich by using simple trading systems like this.
I am not just playing around with numbers and idle trading ideas either. I have already done this. I wrote the book How I Quit my Job and Turned $6,000 into a Half Million Trading and I published my broker statements to prove I had really done this.
I made over 100% for six consecutive years. The reason that I did not total over one million dollars was that I had to take money out of the account to live on.
I refuse to believe that I am the only person in the world that can consistently follow any one of these simple stock trading systems and I have integrated software and market data to make it easy for others to trade this way also. (Please see, Automated Stock Trading Software).
The point of this post is that stock trading is not complicated and a smart trader will simply tune out all the bogus stock experts and keep it simple (KISS). Believe me Simple Stock Trading can make you rich!
I am a trading system pro and have been trading markets and have been involved with trading system development and the programming of trading system software for 25 years. “Today Stock Market” is my opportunity to share with you some of my trading experience while discussing stock market news and giving my daily stock market update.
Trading $10,000 into a small fortune is clearly the ultimate challenge. But regardless I am a little uncomfortable writing this article because it sounds a little sleazy. But this is not about selling snake oil. I am just trying to give some practical advise based on my personal experience.
Do you have only a small amount of money and yet dream of becoming rich ? Maybe all you have is $3,000 or perhaps you have no cash, but perhaps you could borrow $10,000?
Can a $10,000 account be traded into a small fortune? My unequivocal answer is yes.
Is that an easy task? No, it may be the toughest thing you have ever attempted, but I am going to offer you some ideas and tools that may help you.
The information on this web site is absolutely free so take your time and read everything you want. In fact you SHOULD read everything. What I do for a living is not for everybody. Call me, Robert Buran aka Trader Bob, at 702 490 5317, and talk to me if you would like. I promise I will not try to sell you anything. I can listen; before I was a trader I was a psychologist. And you can talk to me for free about getting rich!
But you will have to learn many things. This is NOT a get rich scheme and let me repeat once more, this is not easy.
But you do not have to be brilliant; you just need to be persistent.
How I started thinking about “How do you get Rich?
About 15 years ago I wrote a book, How I Quit my Job and Turned $6,000 into a Half Million Trading. Well I can’t say I got really rich and I can’t say I got rich fast either. Some might say my accomplishment was modest. In fact I took 6 years to accumulate that half million dollars. I believed in becoming rich slowly. I did not compound all my profits and I took money out of my trading account to live on. My trading account was seldom over $100,000. But the indisputable fact was that I turned $6,000 into a half million bucks.
I also did something practically no other market guru has ever done, before or since. I published most of my broker statements and offered a reward to anyone who could prove they were fakes. To date there have been no takers.
I would estimate I have made about three million dollars trading my own money in about 20 years. Again I made those millions starting with only $6,000 of borrowed money.
I am not the Person you would think could answer the question, How do you get Rich?
If you think my bold proposal, to turn $10,000 into a fortune, is absurd, please understand that these three million dollars were made by a guy who had no formal investment training whatsoever and who typically fell asleep during investment seminars. In fact I find the whole subject of market fundamental analysis boring and I do not even know the names of half the companies whose stock I trade.
I would describe myself as a pretty ordinary guy who has developed over a 20 year period some pretty extraordinary ideas about trading markets. These ideas that I have worked with for nearly 25 years have the goal of yielding maximum investment returns while keeping risk low. When I say maximum returns I am talking something around 50 % to 250% annual returns on an original investment. This is about the range of returns that I have realized trading my own money over many years.
To make $500,000 on $6,000 in 6 years you need an average yield of around 125% compounded. But of course I did not compound the money; in fact I took most of the money out and used it to live on. And so my yields actually were higher than 125%.
In fact I believe I have the best stock trading programs in the world and I could care less who laughs.
So perhaps you ask, “does becoming rich mean I have to bet the ranch to make this kind of money?” Absolutely not and that is why I am suggesting starting with only $10,000. Trade your $10,000 on margin and that will give you $20,000 to work with. Let’s do it.
Trading this modest amount into a small fortune in the stock market is our goal and this is what this web site is all about. Stay with me and I will show you the secrets of Short Term Stock Trading for the small investor. And rest assured I will most certainly answer the question, How do you get Rich?
I am a trading system pro and have been trading markets and have been involved with trading system development and the programming of trading system software for 25 years. “Today Stock Market” is my opportunity to share with you some of my trading experience while discussing stock market news and giving my daily stock market update.