Resuming my Paper Trading account

The time I can employ in maintaining a paper trading account is quite limited, so I cannot run it as I would my own account. Over the last 6 months, my own account has exceeded 65% return on capital. Yes, it is quite unusual, but it was not just luck, but the proper implementation of a sound system I have developed over the last 3 years. Last year, my performance was 30%. But this year, the explosion in volatility has favor my approach to trading.

You can't always predict how well you are going to do, and setting goals for trading is probably not realistic. Nevertheless, I bought into the philosophy of the "SECRET", and the power of seeing yourself receiving the rewards for your efforts, and other concepts such as the power of allowing, etc. So I fix a very specific target of making on the average $XX,XXX per month. I wrote that goal in big letters in a page and pasted it on the wall next to my computer where I can see it every day. Amazingly, my average over the last 6 months slightly exceeds that target, and I feel bound to raise my target over the next six months.

You can set a similar goal too, but it most be challenging but realistic. Challenging yourself to meet a goal you have not achieve before is what is going to push the boundaries of some self-imposed limitation that has been plaguing you. If you have never been profitable trading options, perhaps your goal could be to make a profit. The important thing is that you change your self-concept as that of the kind of person that meets his/her goals. If, perhaps, you have meet most of your goals in life before, then you can easily project that you can do so in trading as well. Yes, trading is dicey and the markets are unpredictable, some make it but most fail. To succeed in the markets is not like any goal you may have set for yourself in the past. For example, getting a University degree is knowingly achievable, as millions do every day. But with trading...! well, anything can happen.

Several years back I set out to make a career out of trading. Have a frequent (if not regular) source of income that would give me at the same time satisfaction and freedom. I have a nest egg, the result of years of hard work and the rat race. So I had to figure out a way to invest fairly large amounts of money safely and consistently. Back in the late 90's I thought many times about using options in an uncommon way to generate profits safely and with all the leverage that options provide. I know now that there isn't such a thing as consistent when it comes to the stock market, you can certainly control risk and potentiate you profits with the leverage of options. When the markets cooperate, your gains can be out of all proportions to your expectations. You do NOT want or have to limit the potential of your trades with vertical spreads or calendars, or butterflies or condors. Although I went through periods of testing such strategies. No, you should always have unlimited upside AND downside potential, while limiting your risk. That is taking full advantage of the power of options. That is the power of the PCCRC.

Back on June 28, I opened a paper trading account with $100,000 of capital and the intention of recording all my moves and post the results here. Although I have not been been fully investing the paper money in that account because of time constrains, I have recently reached a little over $138,000. That is over 12%/month on the average. Imagine if all the cash in the account was put to use over the entire time...! Still, 12%/month means that you could easily double your money in one year, even if not all months are that rewarding.

You can see every trade in this account real time (not backtesting) by ordering my DVD's and joining my Private blog. In DVD 3 I describe the opening of the account and the first month of trading. Since then, every new trade has been describe in video clips available in my private blog. Please join me and other traders. Simply send me an e-mail at Paperprofit1@gmail.com and request ordering information.


http://stockoftheday.blogspot.com/2007/08/2-months-25-returns.html