Experts will tell you things like: Have a clear plan for entering and exiting trades. Don’t risk more than X or Y percentage of your account on any one trade. Make sure you use stop-losses. Diversify the kind of stocks and financial instruments you trade in.
You’ll also get lots of advice on how to control your emotions.
This is all well and good, and if you can stick to it while working continuously to improve your understanding of the economic fundamentals and technical indicators that drive markets, you’ll have a good chance to join that select group of traders who consistently earn a 10 or 20% annual return on their capital.
The problem is that while this kind of results would be more than acceptable for most types of businesses, and they could be considered excellent for established traders with large accounts, they’re of little use to newcomers like Michael Tucker.
Although 49-year-old Michael is currently employed as a purchasing agent and warehouse manager for a chemical plant in Cheyenne, Wyoming, he has a long-held dream of creating a significant second income that would give him the ability to retire early.
Just over a year ago, he decided to try trading as a means of achieving this goal and started with a trading account of only $500. Everything went well at first, so much so that Michael was able to turn his initial $500 into an amazing $4,250, in just three months.
Unfortunately, shortly after that, the premium trading service he relied on for alerts, suffered a dispiriting six-month run of losses, during which Michael reluctantly gave back all his gains.
Rapidly approaching his 50th birthday, purchasing agent and warehouse manager Michael Tucker of Cheyenne, Wyoming has set the goal of retiring debt-free and being able to become a full-time trader with a $250,000 account in just two years time. Although he had some disappointing experiences with previous advisers, his early results working with Jeff Bishop and Total Alpha have given him the confidence he needs to hit his ambitious, yet achievable target.
Purchasing Agent & Warehouse Manager
Undaunted, Michael decided to try another service, but quickly found that its win/loss ratio was an unacceptable 1:5. At this point, many traders would have given up, but Michael is very determined and highly-committed to his financial and life goals.
After doing substantial research on leading trading services, he joined Jeff Bishop’s Total Alpha and has given himself just under two years to achieve what he describes as “My ultimate goal to retire from my job with everything paid off, so I can focus on the market and my freedom by the end of my 50th year.”
Michael further defines his goal as $100,000 in the bank and a comfortable trading account worth at least $250,000. And he’s determined to accumulate these balances within the next two years.
Rapidly turning a small account into 250k might seem like an impossible dream, and it’s fair to say that Michael’s goals are ambitious, but it can be done. In fact, here at RagingBull, we’ve seen it happen in many cases.
“My goal is to retire from my job with everything paid off, so I can focus on the market and my freedom by the end of my 50th year. I just turned 49, so I have just shy of 2 years to make this happen.”
What serious small account traders need are instruments that offer dramatic growth potential while also being accessible to those with limited buying power. Fortunately, there are such instruments, popularly known as options, which are traded in huge numbers every day.
Admittedly, some well-respected traders are wary of options and go so far as to advise their followers to avoid them altogether on the grounds they’re too volatile. Or, they say that options require specialized market knowledge which inexperienced traders are unlikely to have.
But it’s the volatility of options that gives them the power to deliver extraordinary, quick returns. Especially options on stocks which offer lots of upside potential in the event of a favorable earnings report, or some other significant news event.
Better still, these options trades are usually too small to attract large funds or market makers, so focusing on them makes you relatively immune to contrived price movements which are often too costly for individual traders.
Another great advantage of options for small account owners is they enable you to make the maximum possible use of limited buying power, as options can be bought for much less than the cost of the underlying stock.
All of these factors mean that the right options trades can generate enormous percentage returns, far beyond anything that would be possible with conventional stock trades.
“One day, I found out about Jeff Bishop and checked into his Total Alpha program. It was the only time I’ve ever seen someone offer a live look at their trading screen and classes to learn at my own pace.”
Naturally, though, there’s a snag. These kinds of setups don’t come along every day, and they don’t stay around for long, either. In fact, when Jeff Bishop recently notified his subscribers of a unique opportunity to buy options on VF Corporation (VFC), he called it a “Lotto Pick.”
But spotting this trade just in time, right before it took off had nothing to do with luck. It had everything to do with a highly-developed combination of technical knowledge, experience, and systems which Jeff offers to his subscribers, and which are almost always going to be beyond the capabilities of the beginning small account trader.
So for Michael, one of the key benefits of working with Jeff, apart from the detailed training videos WMM provides, has been having a chance to look over Jeff’s shoulder and view the same live trading screen he uses every day.
It was Jeff’s transparency that gave Michael the confidence to move on the VFC opportunity. And boy, is he happy he did!
“When I saw Jeff do this on his live trading page, I chose to have faith in his call and bought the VFC 1/25 call. It was on Wednesday at 9:00 am,” recalls Michael.
“So when I logged in on Friday morning at 7:33 am and saw VFC was up over 300%. I was so elated. I’ve never seen such a high-profit return since beginning this venture.”
He continued, “After I nearly chewed my nails to the quick waiting for the best possible shot at max profit, I got scared and cashed out. Holy Buckets! I got a 376% return! I was able to turn my measly $245 into $920.00. Imagine if I had gone all in on that one.”
While Michael’s enthusiasm is understandable, he understands that not all trades will produce this same kind of impressive returns. It’s also worth noting that his $245 investment represented just less than five percent of his $5,000 trading account. For many traders with small accounts, five percent can be a considerable percentage to stake on a single trade.
“Jeff Bishop has helped me grow my initial $500 investment account to more than $5,000 in the first 3 months. Because of this, I subscribed for a full year of Total Alpha.”
That being said, you won’t need too many of these “Lotto Wins” to offset less spectacular trades and occasional losses which will inevitably occur.
It’s important to note that Michael built his current $5,000 account from a starting balance of just $500 during the three months since he joined Total Alpha. This kind of results is achievable when you follow the right options trading system.
There’s no better, or faster way of learning in any walk of life than working closely with a master of your chosen craft. With Jeff Bishop as his mentor, Michael feels that he’s finally on the right track.
“It’s never too late to retire early,” says Michael, “I have a real sense of being able to reach my goals, and perhaps someday I’ll be able to pay it forward.”
Do you have a Raging Bull success story to share?