About Me

I have been in love with the stock market for as long as I can remember. The film I loved the most was Wall Street. The important lessons from that film were.

1. There is no democracy when the top 1% own 50% of the United States.
2. Information is the most important commodity when trading the market.
3. If you follow the Herd you will get slaughtered in the market.
4. The poor and hungry traders make the best traders not the MBA types.

I took that information and traded with what little information was available at that time. I learned Fundamental Analysis and Technical Analysis. With all that knowledge I was able to make $500,000 and then lost 500,000!! That was the the greatest lesson I ever learned.

I started looking into options and realized that this was the market that the Whales were making their money. In options you can make 100% to 200% in a 5 to 10% move in the underlying stock.

I learned about options from a Chicago Derivatives Analyst. My eyes were opened these institutional and hedge fund traders we refer to as whales were making $1 Million to as high as $150 million in a single trade lasting 1 week to 3 months. The trader who taught me was consistently making over 20k month. He told me 95% of option traders lose money. I said I love trading buy why should I continue trading. He said where there is a lot of confusion there is a lot of money.

I never gave up and consistently made 10k to 35k month. I realized the following about the market after spending 20,000 hours analyzing the market and trying every strategy. Covered Calls, Naked Put Selling, Vertical Spreads, Credit Spreads and Delta Nuetral Strategies, I tried them all. These were my findings.

1. The institutions , hedge funds and market makers control the money flow.
2. The Smart Money shows their hand by their real trades and money on the Option market and then talks Bullshit on CNBC.
3. They will leak information so the dumb money will doThe opposite of what they should be doing. Amateurs buy the right stocks at the wrong time. This is how I lost 500,000.
4. The whales will spend 10 billion taking a stock down if they can make 20 billion on the way up. They are sadistic bastards
5. Most of the money in the market is made in a very short period of time throughout the year.
6. Money moves from sector to sector in the market. Food stocks to Software Stocks to Semiconductor Stocks to Pharmaceutical Stocks to Housing Stocks to Insurance Stocks to Real Estate Stocks. Each of these moves last 1 to 3 months generally. These institutions move their money in collaboration with each other. It is all rigged. James Simons turned every 1 million into 400 million. He is worth 30 Billion. Buffets company has $278 billion in cash more than the US government. They know the money flow. Why do you think Bill Gates best friend is Warren Buffet? Warren knows the money flow. Bill was the richest man in the world for 20 years.
7. Institutions push Day Trading because they make more commissions . Why would you Day Trade when institutions accumulate positions on average for 1 to 3 months. I want a $10 or $20 stock move not $1 move which I will miss if I decide to go to the bathroom?
8. Financial Planners and Mutual Fund Representatives are salespeople 99%percent of them cannot trade to save their lives. It is like taking race car driving lessons from someone who can’t drive. They are all better at playing Golf than picking Stocks.
9. The stock market is a place where 95% of traders have no clue what they are doing. 5% Make a killing. I was determined to be that 5% even if it killed me. 20,000 hours later I figured out the ebb and flow of the market. I am a 25 year overnight success. My parents taught me perseverance and now I am a King of my small lMountain!!
10. The SMART MONEY laughs at people who buy and hold bad stocks behind their back. Call them idiots behind their backs. 90% of stocks have a BUY OR HOLD RATING. ONLY 5% OFF STOCKS ARE GOOD. A STOCK IS ONLY GOOD IF IT IS GOING UP!!
11. WHY DO BAD STOCKS GET A HOLD RATING? CORPORATIONS WILL NOT RAISE FUNDS WITH BANKS OR BROKERAGES THAT GIVE THEM BAD RATINGS. THE PUBLIC IS BUYING BASED OF BULLSHIT RATINGS. I LAUGH WHEN I SEE MANY RATINGS.
12. THE BIG TRADING INSTITUTIONS WORK FOR THE CORPORATIONS JUST LIKE THE POLITICIANS DO!!

How do I find stocks ready to make an explosive move?

Remember I said a 5% to 10% move on a stock means 100% to 200% move on an option. If a whale knows a stock is moving up would they rather spend 3 million to make 6 million or 9 million on an option trade or put 3 million in a stock trade to make $300,000. Greed always drives human behaviour.

When a trader bets $2 Million to $150 Million on an option trade it hits my radar. I analyze the option chain and ride their coattails. I am a fly feeding off an elephants back. They make millions I make 5k to 10k on a successful trade.

The other way I track institutional accumulation is with price action, moving averages, volume spikes . I also find data patterns which are repeated in certain stocks. If a stock goes up an average of 10% for the last 12 years on a certain one month timeframe do you think that is random or market manipulation by institutions. If you think it is random then I have a winning lottery ticket I can sell you for $50,000. I can skin a cat many ways and I am like a car mechanic who has all the tools for swing trading.