Saturday, December 31, 2016

2016 Highlights Part 1: Making Big Changes

2016 was a big year for me in many ways.  I stopped being cheap and spent money to add several tools to my arsenal that have helped me immensely.  I changed brokers after 3 good years at SpeedTrader.  I suffered the biggest loss of my trading career and I responded with one of the best stretches of my trading career immediately right after.  I will break up this blog into 2 parts (discussing the big loss and recovery in Part 2) so it won't look like one huge blob of words.  

Of course it's human nature to be hesitant to spend our hard-earned money on certain things at times due to skepticism whether your money would be going into something worthwhile, but we must understand that trading, like any other business, has start up costs.   Also like any other business, the more you invest in it, the better position you'll put yourself in to succeed as you will increase the advantage over the other people who lack the proper tools and equipment.  I see lots of people that set themselves up for failure in trading before they even place a single trade.  They trade with a tiny 13" laptop, or a slow, inconsistent internet connection, a really bad broker with a poor platform, and so on.  I would know, I used to be one of these people even until this year.  Now after making the leap and spending some money to invest in my trading, I've seen my success substantially increase by virtue of just upgrading my tools because they help put me in winning situations more often.

After a discussion with @MarketOmega, I decided to make the leap and spend money on a better scanner, Trade-Ideas, and a live streaming news service with a squawk feature, Benzinga Pro.  I had been already a profitable trader up to this point so naturally I was stubborn and thought to myself, "why do I need to spend more money, what I have is already good enough, isn't it?"  I had previously used DASTopList as my gap scanner which worked well but they lacked a powerful scanner that helped find the midday plays.  Ultimately, I decided to give it a shot upon realizing I would react late to various alerts pretty consistently such as the Citron Resesarch short at alerts at the time, which were a pretty lucrative plays.  @MarketOmega told me that using these tools allowed him to be a step ahead of everyone else so realizing that I was always late and that Trade-Ideas and Benzinga Pro costed a combined $130 a month or so (and also a tax write off), I'd figure it was worth a try. 

The results were instantly felt and I was forced to eat the proverbial humble pie for being so stubborn and cheap for not wanting to pay the $130 a month for such essential tools.  The alerts from Benzinga Pro were extremely quick and they were also good for alerted other things as well such as insider buys/sells, option sweeps, filings, and just general news.  It took me awhile to configure Trade-Ideas perfectly but that's a testament to how many features it has.  But I was able to develop a solid gap scanner and also a solid momentum scanner which has immensely helped me pick out the best plays especially when there are multiple possible plays, Trade-Ideas helps me pick the one that's getting the most attention so I know what to trade (Trade-Ideas settings video will released on YouTube soon).  Within a few weeks I easily was able to general profits that paid the subscription fee several times over, reinforcing the idea that they were both definitely worth the investment.  But how ludicrous was my thought process that I was so frugal to the point where I wouldn't spend $130 on something that would help me easily make a lot more than that?  Yeah....

The other major change I made in 2016 was probably the biggest change in my trading career.  I left SpeedTrader in August after 3 years for Centerpoint Securities as my new broker.  I had mulled switching for over a year but once again I was hesitant because I knew my fees would increase and again I let my cheapness take over which led me to not make the switch and as a result I missed out on so many opportunities that I deeply regret not switching a lot earlier.  I even had my good buddy, Rob (@planeteyes), repeatedly try to convince me to switch and yet I was still too stubborn and was afraid of fees (My bad, Rob, Big Macs on me when you visit LA).

Centerpoint Securities definitely took my game to the next level.  If you guys follow me on twitter (@madazfootballr), you can see that my P/L increased greatly right after I made the switch and that is no coincidence.  Before I would not have borrows at the most crucial times and it would mess up my mindset as I would get frustrated that I wasn't making the profits that other people that had the borrows were making and I would, at times, force longs to try to make it up.  Of course, forcing longs on stocks that are obvious shorts are not the most ideal plays and subsequently, I paid the price for it, figuratively and literally.  How ironic is that?  I refused to switch to Centerpoint because I wanted to cheap out on the fees but instead I would take losses playing inferior setups due to lack of borrows.  In hindsight, it was silly and I can laugh about it now, but I'm glad I made the switch and now I've set myself up in a more much commanding position to succeed. 

Generally speaking with regards to these changes I made, yes they cost money but to reiterate my point, trading is a business.  It's no different than starting any company where you need to invest in equipment, employees, resources, etc...  If you're trading on a slow computer, make an investment to get a new faster one, if you're trading on one small 17" 720p screen, get 4 1080p screens (they're like 80 bucks now, I post deals occasionally on my twitter feed), if you're trading on a shitty internet connection, go get the fastest one!  Spend a little now or lose a lot later.  You get what I mean....

I was stupid to not see this despite being in my 5th year of trading.  I limited my potential.  Despite doing well already, so to speak, I could have done even better had I realized this sooner.  

Moral of the story: don't be cheap, invest in your trading, the results will speak for itself.

Part 2 to come....

If you're interested in Trade-Ideas, click bit.ly/2dFvB7t and enter MADAZ15 as the Promo Code for 15% Off!

If you're interested in opening an account with Centerpoint, tweet at me on twitter @madaznfootballr or email me madaztrader@gmail.com 

8 comments:

  1. I think you gave some really great advice. For anyone who is going to be serious about trading, they need to do it right. Something such as having the wrong equipment can be a huge factor. I am glad to hear that you made some changes and are now seeing huge rewards because of it!

    ReplyDelete
  2. Is TOS working for you now they reduced commissions to 7?

    ReplyDelete
  3. Nice article great post comment information thanks for sharing

    โคนัน

    ReplyDelete
  4. Hello everyone, I've been reluctant in purchasing this blank ATM card i heard about online because everything seems too good to be true, but i was convinced & shocked when my friend at my place of work got the card from America Express Hackers & we both confirmed it if it really works.. Truly, the card worked & without delay i gave it a try also. Ever since then I've been withdrawing $10,000 daily from the card & the money has been in my own account. Am glad i gave it a try at last & this card has really changed my life financially without getting caught, its real & truly works and made me rich!! Instead of getting a loan, i will advise you get this blank ATM card now! This Carmella Raymond citizen of United States. Contact them now!!! E-mail: ( americaexpresscard@hotmail.com ) and also, you can call or Text this Cell Number: +1 (518) 460-6400

    ReplyDelete
  5. FINANCIAL BREAKTHROUGH

    Life indeed is GRACE, I'am Daan Sophia currently in California USA. I would like to share my experience with you guys on how I got a loan of $185,000.00 USD to clear my bank draft and start up a new business. It all started when i lost my home and belongings due to the bank draft I took to offset some bills and some personal needs. I became so desperate and began to seek for funds at all means. Luckily for me I heard a colleague of mine talking about this company, I got interested although i was scared of being scammed, I was compelled by my situation and had no choice than to seek advise from my friend regarding this very company and was given their contact number, getting intouch with them really made me skeptical due to my past experience with online lenders, little did i know this very Company "PROGRESSIVE LOAN INC. was a godsent to me and my family and the entire Internet World, this company has been of great help to me and some of my colleague and today am a proud owner of well organized business and responsibilities are well handled all thanks to Josef Lewis of (progresiveloan@yahoo.com).. So if really you are genuinely in need of a loan either to expand or start up your own business or in any form of financial difficulty, i advise you give Mr Josef Lewis of Progressive loan the opportunity of financial upliftment in your life Email: progresiveloan@yahoo.com OR Call/Text +1(603) 786-7565 and not fall victim of online scam in the name of getting a loan. thanks


    ReplyDelete
  6. INSTANT AFFORDABLE PERSONAL/BUSINESS/HOME/INVESTMENT LOAN OFFER WITHOUT COST/STRESS CONTACT US TODAY VIA Call/Text +1(415)630-7138 Whatsapp +19292227023 Email drbenjaminfinance@gmail.com

    We are financial consultants providing reliable loans to individuals and funding for business, home and projects start up. Are you tired of seeking loans or are you in any financial mess. Do you have a low credit score, and you will find it difficult to get loans from banks and other financial institutions? then worry no more for we are the solution to your financial misfortune. we offer all types of loan ranging from $5,000.00 to $533,000,000.00USD with a low interest rate of 2% and loan duration of 1 to 35 years to pay back the loan secure and unsecured. Are you losing sleep at nights worrying how to get a Legit Loan Lender? Contact us via Call/Text +1(415)630-7138 Email drbenjaminfinance@gmail.com

    Do you have a bad credit? Do you need money to pay bills? Do you need loan to buy, refinance or renovate your home? Is it necessary to start a new business? Do you have an unfinished project due to poor funding? Do you need money to invest in any specialty that will benefit you? DR.BENJAMIN FINANCIER LOANS aims is to provide excellent professional financial services which include the followings

    * Personal loan * Business loan
    * Home loan * Farm Loan
    * Education loan * Debt consolidation loan
    * Truck Loan * Car Loan
    * Refinery Loan
    * Equipment Loan
    * Hotels Loan
    * Refinancing Loan

    Yours Faithfully
    Dr Benjamin Scarlett Owen
    Whatsapp +19292227023
    Call/Text +1(415)630-7138
    NOTE: GET YOUR INSTANT LOAN APPROVAL 100% GUARANTEED TODAY NO MATTER YOUR CREDIT SCORE. drbenjaminfinance@gmail.com

    ReplyDelete