Badass Trading Secrets [#1] – Learn How To Trade Stocks! SIMPLIFIED!


So guys Paul Allen here again aka the badass trader and today we’re going to look at secret number one of how I trade my stocks So how to pick stocks with a plus 90% success rate? Even higher in many cases. So imagine this is you as a nuke later Can you remember back then when you’re first getting into it? Don’t really know what you’re doing. What’s the first thing you do? Most of us will go there and we’ll just trade it’s complete lame trading We don’t know what we’re doing, but it might be a stock We like or you know, somebody gave you a tip or you’ve watched CNBC and you saw you know somebody talking about this stock or that stock and you just go in and you trade it and One of two things is gonna happen. You’re gonna win. Are you gonna lose? I know there’s a smartass out there saying what if you broke even but you get what I’m saying? it’s you know, one of these two choices is the likely outcome of your first trades and What are you going to do after that? You’re gonna want to learn how to win whether you win or whether you lose You’re gonna want to learn how to win if you win you want to win more and if you lose you think you’re doing something Wrong you want to learn how to win? This is the normal process that most traders go through. I mean I went through it myself Everybody that I’ve ever talked to about trading has gone through something similar to this It’s completely normal, but it’s incorrect. So instead of learning how to win what we’re gonna do is learn how not to lose That’s the key here guys Mind blowing, right? So this is the two thousand innate house housing market crash Can you imagine for a second that you were all in all your capital right at the peak here just before the crash? What would have likely have happened? the market fell by this much Want one leverage on the sp500 at this point and You had all your money invested. This is how much the mark would have had to fall for you to lose all your capital Now take for example If you’re the same trade SP 500 all in in your capital right at the peak of the housing market crash But instead you’re in a two to one leverage, you’ve lost all your money Imagine same trade same timing. They’re right at the peak of the housing market crash except at a five to one leverage You wouldn’t have even gotten halfway through the market crash without losing your money Imagine again. Same trade same timing. I had a 10 to 1 leverage You wouldn’t even know you’re in a crash before you’ve lost all your money Get the point here guys So trading the sp500 at a one-to-one leverage will keep you safe from even the worst Market crashes out there and this average is at a 10 percent return per year. So let’s have a look at it This is the S&P 500 over the last roughly four years Averages 10 percent per year at a one-to-one leverage But we’re going to want to do a little bit better than that So let’s look at couple of stocks in comparison to the S&P 500 Here’s Microsoft. So the S&P 500 is the bottom line here That’s returning 10% per year average and this is Microsoft Give me some nicer charne-sayre guys, there’s Facebook Worf Microsoft wars’ the S&P 500 Let’s go up another knot there’s Netflix Granted most of the growth within recent times but a silver great stop to have And let’s look at my favorite stock of all the time the Beast of the beast Nvidia Look at the growth. You can’t even see the S&P 500 a And this is a 10% yearly return down there. Imagine your returns on this So that’s the key here to guys My number one secret is picking the right stocks and then trading them at a one-to-one leverage is the key to successful consistent returns Now a stock can go to zero it isn’t as diversified as trading in an index But the likelihood of an S&P 500 stocks something like Facebook going to zero. It’s very very low If you want to be completely Risk-averse finding the S&P 500 out of one to one leverage The entire US economy would have to collapse for you to lose all your money And if that happened there’d be a lot bigger problems in the world in money So that’s it guys four secret one stay tuned for secret tip

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