The Stock Market Can Be Beaten

In 1992, during the CNBC/USA Today's National Investment Challenge, I used the most aggressive options strategy and parleyed $500,000 to over $6,000,000 in the course of 3 months. The gain was 1125% and I won the professional options division contest. But that's simulated money and my reward money was only $10,000.

22 years later, trying to have fun after retirement,  I decided to test the same options strategy with real money. The goal is to match or better Larry William's (or was it somebody else) who started with $5,000 and turn it into $1 million by trading futures in a year and that's equal to 19000% annual return on the initial capital. In this challenge, instead of using futures I would trade options and individual stocks.

I funded the account with $6000 near the end of March 2014 and as of today (June 6, 2014) net realized gain is $582,177 which translates into 9600% gain in  the last 2 1/2 months.  I traded 43 times during the period which includes TZA options, varies stock options and varies stocks. I have 75% of the trades were winning trades. However, most of the gains were from TZA put and call options. I traded TZA options 23 times within this period and only 2 of the trades were losing trades. So the winning percentage for TZA trades were 91%.

These have been an amazing 2 1/2 months. At first, I thought I got lucky. But then it couldn't have been because I traded 43 times and 91% accuracy on timing the TZA which is an ETF tracking the Russell 2000 index. And besides I always have been confident in my market timing. But then before these all happened I had a dream in which I had both hands full of bird eggs of different colors and I looked up the Chinese dream analysis on the web and it meant I have a fortune coming.  So I now think it's because of fate, luck and skill combined for the great result. Any way , a 9600% return on capital in 2 1/2 months is a crazy return I haven't heard of until now and the public ought to be told. With this kind of progress, I may be able to reach my 1 million target by August sometime.

I declared I have the market beaten at least for the last 2 1/2 months. I want to brag about it now when I still can before the market opens next week. So I am also telling you novice trader out there, there is hope in trading.  The following are the results:

 Realized Gains/ Losses:

Account Value Graph:

CNBC/USA Today National Investment Challenge Article:

NQ Price Is Taking Revenge After Came Down Over 70% Since February

NQ came down from February high of 22.33 to a low of 6.25 last week. The stock is up over 34% today. Stock has a float of 22 million shares and today's trading is now over 26 million shares which equals to over 7 times average volume. An independent audit has found that publicly reported financials have been "verifiable and consistent" with actual cash balances and revenue.  The stock, had been depressed by Muddy Waters report last October accusing the company of financial wrong doings.  The auditor's report may bring about significant recovery of the stock price. Technically, NQ has formed the most bullish Island Reversal pattern today. It also filled a gap created in mid May. It's trend is now up . Next resistance is the 50 day moving average near 12. Further price recovery may take it up to 200 day moving average near 16.