$10,000 in 7 trades ;-)

[Merlin]

Alright...alright, it's paper money and I was betting like crazy but still, not bad hey. Here's the story behind it.

As many of you know, I like everything about money games, I love the casino and the Stock Market but been burned by both so I have learned that I better be reeeeaaal gooooood at it and testing my systems with fake money before investing another dime again.

That's why in my night shift at IBM back in 2008 I was exchanging emails with another programmer in France on creating a software that would backtest a roulette technique on over 100,000 roulette spins taken from a real roulette and better found a system that pays a lot or it was bye bye roulette forever.

Same thing with the Stock Market, I decided to learn a new programming language just to program trading system and backtest them in the past months and years to see if the system was winning more than it was losing. This way I can lease a winning trading system to other traders instead of risking my own money on the markets.

With online casinos you can bet as low as $1 or less on each roulette/black jack or Baccarat bet which makes it perfect if you want to test it with real money because you can open a new account with just a few dollars ($100 or less).

However, casino games are more based on luck while the Stock Market which also has a little luck involved because you never know what the market or the stock will do but with a Stock Chart and some basic Technical Analysis knowledge, you can greatly improve your odds and put "luck" on your side.

The problem with the Stock Market is that you need a lot of $ to open a new trading account (well over $1,000) just to get in and you cannot just buy $1 of Stock that's ridiculous.

So they both have their flaws, until now.

I posted a thread on Binary Options the other day and those REALLY got my attention because they are LITERALLY a mix of both. You can buy/sell those Binary Options for as low as $1 like on an online casino, not have to be a millionaire to trade the Stock Market and use Stock Charts to boost your odds of winning.

As you can see I tried betting 1 penny just to see how low they go and go this popup message.



So no need to tell you that when you can bet as low as $1 on Stock Market Charts my eyes almost popped out of my head. Could this be my $4,000/month using the Stock Market new belief that I have implanted with the EC and MT that is paying off???

Anyway, I did some research to see if those guys (Banc De Binary which is a Binary Options Online Broker) pay well people who win and it seems to be the case so that was a relief and now I only needed to open a DEMO account with $50,000 play money so that I could test their system.

Then I got an email from a guy telling me that I needed to fund my real money account with $500 in order for them to open me a demo account so I said "well...to hell with them".

Then yesterday night something weird happened, at 10:30 Pm, a guy from Banc De Binary called me . What??? I could hear the other "telemarketers" in the background telling people to fund their accounts.

I was about to hang up until he said that he could open me a demo account for 24hrs for free to test it out so I had nothing to lose and something interesting to test.



This is the screenshot of my 7 trades so far. I started with $1,000 and decided to add $1,000 on each trade this way if I win say the first 3 trades ($1,000+$2,000+$3,000=$6,000) but then lose the last 2 ones (-$4,000 -$5,000=-$9,000) then I would be in the hole pretty fast ($6,000-$9,000=-$3,000).

In other words, I better be real good and put my money (ok, fake money) where my mouth is and put to the test those Technical Analysis skills that I got over the years that I'm also teaching here on another thread.

So the first thing I did was do a trade at $1,000 using their little Stock Chart that they offer traders. Here's the chart of the EUR/USD that they give us.



BIG MISTAKE. If you open an account with them DO NOT use these charts. I learned soon after by opening my Charting Software that those line charts that they offer don't look the same as the real trading charts that we use with CandleSticks and trend lines.

Take a look now at the 1 minute chart that FreeStockCharts.com are giving us. As you can see, it does NOT look the same at all.



If you are not sure you can find some confirmation of the overall daily trend by opening up a 30 Min chart to see a different view of the same stock. Here you can CLEARLY see that the stock is on a massive dive for the day and you should not enter in the up direction or you might risk losing your trade.



So close to $10,000 with 7 trades and the first 4 took me less than 1 hour. Then I took a 2 hours break and got back in to lose it by a hair ($0.002) and then did 2 more today within 3 minutes between each other.

Of course this means nothing because I was betting crazy amounts but let's say you remove 2 zeros here and this would have been $100 bets and up starting with a $500 account, that would have been a $100 in 7 trades that took me maybe 15 minutes total to analyze on their respective charts (about 2 minutes max by trade) just by tracing simple trendlines, the rest is placing your bets and waiting for the Binary Options timer to end. A 5yr old could do it.

So a cheap "casino like" website where you can trade Stock Charts, WOW! Somebody pinch me.

Before I jump in with real money and deposit the minimum $500, I will use either their Demo account (unless they close it tonight after my 24 hr trial is up) or simply place virtual Binary Options bets in my head based on where the price of a Stock will be in the next 5 minutes and see if I'm really as good as I think.

Cheers,

Merlin

[Merlin]

Wow! Ok, this is getting sicker by the minute here.

Yup, I think my $4,000/month using the Stock Market new belief is kicking in because I keep finding new and hot stuff here on this Binary Options thing.

So if like me you don't have a lot of money to throw at the Stock Market, think that Technical Analysis sounds interesting but you are not a pro and are not sure if you want to risk your money based on your trading calls, then you are going to love this video.

How about "Copying a pro" and no hehe, I'm not talking about me although I'm not too bad either but I'm just a average trader here, I'm certainly NOT a pro with a trading success record of 95% call accuracy where whatever they pick they turn into a winning trade.

This is why this company called eToro created this feature called "social investing" where you simply take a look at a list of the best traders who buy/sell Binary Options select the one with the best winning trading record and you click a button to copy his trades.

Instead of betting $100,000 per trade like him for example, you could set it to jump in with $1 per trade.

Basically, no more tracing lines on Stock Charts or scratching your head as to whether the Stock will go up or down, let the pros do that for you. Isn't that crazy or what?

It's pretty much what I am programming for more serious traders but for beginners who don't have a lot of money to start with so they can use this eToro CopyTrader option.

If you like me, you think that the Stock Market is cool but don't have a lot to invest or don't feel confident enough to trade, then this eToro option is just for you and to be honest with you, seeing a guy who has a 96.8% winning trading record makes me want to drop my system and trade with him too.

Cheers,

Merlin

http://www.youtube.com/watch?v=aj06JyUCHTo[/youtube]

[James Sawyer]

Richard,

This is mind-blowing. I will be back with questions when I re-read and absorb what you'd written.

[Merlin]

Richard,

This is mind-blowing.

Yeah I know, but I found "a catch" about eToro.

The problem is that they don't trade BINARY OPTIONS, they trade Stocks, Currencies (aka Forex) and Indices DIRECTLY.

What do I mean?

Let's take a look at my Binary Options trade where I made $10,320 in 5 minutes using Google's Stock (see screenshot below). When I placed my $6,000 bet, I wasn't buying $6,000 worth of Google Stock, I was buying an Option on whether the Google Stock will go up or down in the next 5 minutes.

When I got in, the price of the Stock was 683.45 and it went up to 683.64 when I got out 5 minutes later. It went UP so... I WON.

If I would have bought the Google Stock itself, I would have made peanuts, (683.64-683.45=$0.19 of profit per Stock) but by buying an Option, I made a profit of $4,320 for a total payout of $10,320 if you include my initial $6,000 investment.

In other words, if I would have joined eToro and "copied" a trader who buys Stocks, my initial $6,000 would have bought about 10 Google Stock at 683.45 each (so an initial $6,834.50 investment) but at the end of the 5 minute trade, I would have made $0.19 of profit per Stock or $1.90 of profit since I bought 10 stocks. Less than 2 lousy $.

You see the difference?

So which one do you prefer? Investing $683.45 and buy ONE STOCK and win a BIIIIIIG $0.19 of profit per Stock OR...Invest your $683.45 in a Stock "OPTION" and have a potential of making over $1,000 if the Stock is going up?

Now of course this goes BOTH WAYS. As you can see in the list of trades, just 2 lines below the Google trade, I had a trade with the Forex USD/JPY where it went south and I lost that $5,000 because the Forex went from 79.896 to 79.894 and just because it went down 0.002 my $5,000 went *POOF*.

Basically, at eToro, there are REALLY trading the actual stuff but unlike Options, trading Stocks and Forex directly pays pennies at a time for each one so you have to buy A TON of them to make a profit and who has the money to buy a ton of Google Stock at $683.45 per share?

Nah... I prefer BY FAR trading Options (just not at $5,000 at a time $10 per trade should be good enough for me to start with).

We still use Google's Stock or Forex as the trading tool but we DON'T buy the Stock, we simply bet on whether the Stock will go up or down in the next 5 minutes based on our Technical Analysis of the Google's Stock Chart.

Hope you guys follow me?

Merlin