ARTICLES | B.P. Rising

20 REASONS TO AVOID TRADENET

10/31/2018

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In recent weeks I've been receiving multiple inquires from traders asking me about a company called Tradenet. First off, I Just want to say that I've never used them and I do not recommend it. I'm informing people about my concern because I believe there are multiple red flags. I know people using this service and have warned them all against it. Tradenet, or as I like to call them (Shadenet) is an "educational" company that lets you bypass U.S. law in order to trade CFD's with the broker TEF Securities (TEFS) in Mahe, Seychelles via Colmex Pro in Cyprus. These locations alone should raise major flags as they are known fraud zones. The model is super enticing for new traders who don't have large accounts. It sucks people into paying thousands for overpriced educational courses and then supposedly allows you to trade with big buying power CFD's (Contracts For Difference). These are illegal to trade in the US because of how dangerous it can be for the uneducated trader. In fact, CFD's are derivatives and derivatives happened to play a major role in the mortgage crisis. I decided to do a deeper dive into this situation and found out some interesting facts. Surprisingly and sadly, nobody is really talking about this because there are too many people making money by pushing the service for referral fees. The actual company name is "Tradenet Global UK Limited." You will notice the use of the name Tradenet and Tradenet Capital Markets on the website. This is probably designed as a smokescreen so its tougher for people to find any details on them. The current Director Meir Barak appears to be a flamboyant and charismatic salesman. He even reminds me of a Las Vegas magician, but its most likely your money that will do the disappearing act. Ive heard about far too many people blowing accounts because they close you out with a certain UNREALIZED loss (loss threshold depends on account size). And they act as if its a normal thing. "No big deal, I will just pay for another educational course." It feels very much like a casino. Its also possible that the model could be some sort of well hidden ponzi scheme where the culprits "rob Peter to pay Paul." I do want to stress that I cannot be 100% certain the business model is illegal or a ponzi as these schemes can often run a fine line between legal and illegal and can operate in grey areas. Also, there are many ways to go around things with legal loop holes that they may be exploiting. Multi level marketing companies such as Herbal Life are a great example. The issue is most clients could care less about the supposed educational package. They are only really joining to access the CFD buying power (monopoly money). Whether or not a company is a ponzi depends on what % of their revenues is coming from bringing in new members as opposed to an actual product or service. Often times ponzi's come in the form of investment companies, but there can be many different versions and people are getting more and more clever about ways to disguise them. The biggest ponzi in history was run by Bernie Madoff, who was at one time Chairman of Nasdaq. It went on for 20 years before being exposed. Regardless of whether or not the model is a ponzi scheme, below are 20 reasons I recommend you avoid Tradenet...

1. Balance sheet recently updated by Meir Barak for 2017 shows just $375 in the bank (Link at bottom of page and picture above). Doesn't necessarily mean they don't have other accounts offshore stashing cash from overpriced educational courses.

2. There have been 7 different directors in 8 years. 6 have resigned.

3. Colmex Pro is located in known fraud zone Cyprus off of the coast of Turkey in the Middle East.

4. Broker TEFS is also in a known fraud zone Mahe, Seychelles an island off of the coast of Somalia in Africa.

5. Accounts are shutdown with just an UNREALIZED loss. There is no reason to have such a ridiculous stipulation unless you are trying to aid accounts in blowing up in order to avoid payouts.

6. You are not allowed to enter or exit trades after hours.

7. Archive.org lets you view older versions of websites. This shows Tradenet may actually be owned by Colmex Pro. If true, then its possible the model could actually be illegal. Tradenet is registered in UK currently, but was registered under the same address as Colmex Pro at one point.

8. There may be one or more recent lawsuits filed against them.

9. Meir Barak is listed as a director at Colmex Pro.

10. The educational packages are outrageously priced and people are really only paying for the CFD buying power.

11. They push promotion hard through affiliates and pay out referral fees.

12. Tradenet in the UK was incorporated in just 2010 despite claims it was 2004.

13. You could end up having issues with the IRS.

14. On top of high priced educational packages, they take a piece of your gains if you win, and also charge commissions. Promoters claiming they are winning conveniently forget to mention this.

15. If the company goes under, the money paid for overpriced educational packages is gone and so is buying power. In which case you could not make back the money you paid for the course. There is no protection from FINRA or SIPC if things go south.

16. There have been changes lately that could be suspicious such as not allowing many small caps, spread issues, and people claiming they have been switched from CFD's to equities without notice.

17. Most everyone I have come across with Shadenet has blown one or more accounts.

18. Meir Barak has only been Director for one year according to filings.

19. One of the supposed gurus Scott Malatesta was a zone manager at GMC.

20. Too much leverage can crush you (especially newbies).

There are probably many more red flags than the ones posted above, but this list raises some serious concern. There of course will be people who argue that Tradenet is great, the guys are legit, and they payout. These are the ones getting paid to promote it! The problem with ponzi schemes is that they have to payout for a while or the scheme crashes. So it can be very misleading to claim that some payouts legitimize the service. The best fraudsters are going to be smart and most genuine appearing. They have to build up trust first by actually paying out. All you need to do is watch a few episodes of American Greed to understand this. Victims always say things like "he was such a nice guy and I trusted him completely." Its up to you to do your due diligence, be smart, and use some common sense. Don't get sucked into the baloney hype that everybody seems to be selling. Both of the island locations of Colmex Pro and TEFS in known fraud havens alone are reason enough to keep me away. TEF Securities is actually located in the same area where Somali pirates kidnapped Captain Phillips who was then rescued by Seal Team Six. There was even a blockbuster movie about this with Tom Hanks. Come on now! Of course I wrote this article not to try and hurt anyone, but to save as many people as possible from being harmed by this company. Always remember that if something seems too good to be true, it almost always is. The worst thing that could happen is you spend time and stress building an account and then after requesting payout, it never comes because the company has gone under. Another concern about ponzi schemes is they tend to crash during a market downturn when many start to request payouts at the same time. This is what happened with the Bernie Madoff situation. In every single ponzi (and there are many) the culprits start out by paying the victims in the beginning. Another important thing to consider is that those people promoting this service by showing supposed "P&L's" (glorified excel sheets usually) are technically trading without emotion because its not their cash. Its like they are trading with a demo account so the results can be very misleading. But, many of them are not posting the fact that they blew at least one or more accounts. I've also noticed that several younger traders are promoting "Shadenet." And just be to be sure everyone knows, that is a huge red flag. If some 20 year old kid is claiming to be an experienced and successful trading guru, there is a 98% chance its baloney. Especially if the kid talks like a hooligan, wears backwards hats, promotes endlessly on social media, or curses relentlessly in his videos. They aren't making money trading, but through promoting these suspect services. The circus clown acts are widespread and its time for people to wake up! What are the chances these kids started at 15 years old and know what they are doing? Extremely low. Most kids this age are playing Xbox, chasing girls, and going to Justin Bieber concerts. Be smart and use some sense my friends! There is a sucker born every day and please don't let that be you. That's it, I'm done. Please email me if you have any further questions. Tread carefully, good luck to everyone, and I wish you all the best!

Relevant links to take a look at...

https://suite.endole.co.uk/insight/company/07149950-tradenet-global-uk-ltd
https://beta.companieshouse.gov.uk/company/07149950
http://www.tradenetaffiliates.com/revenues

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hyped cannabis stocks are in a cannabubble

9/11/2018

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Cannabis stocks have no doubt been on fire in recent months. Ticker TLRY has run nearly 500% since it's recent ipo. CGC and CRON have moved around 100% in the same period. However, the run could be short lived. Clearly investors have gotten ahead of themselves. Valuations are becoming outlandish and the stocks are starting to run on hype alone. Everyone knows the Canadian legalization is coming and therefore prices are already baked in. Understandably, day traders have been attacking the momentum due to volatility and lack of other options in this highly grinding, dull, and bullish market. Moreover, the buy the rumor and sell the news scenario is going to come into account. Cannabis companies know their stocks are way over-valued and are taking advantage by releasing almost daily PR's to attempt to keep the run going. Most of these press releases are meaningless with prices up at these levels. Next we will being to see a press release of this nature..."Tilray sells fabulous ounce of cannabis to new customer and they may become a repeat buyer!" We saw the same thing with the last cannabis rush back in 2014. It would be wise to take a look at the 5 year chart on stocks like CANN and ATTBF to see how that ended. Yes, they are OTC stocks, but the charts are no less relevant. Below are some important factors to consider going forward...

1. Investors usually overestimate "next big thing"
2. Overall market in a euphoric state
3. Stock valuations are at overblown levels
4. Profitability and dilution are forgotten
5. Investors chasing due to lack of options
6. Big dogs will be taking profits
8. Buy the rumor, sell the news scenario
9. There are still legal issues to consider
10. There have been recent downgrades

The cannabis situation reminds me a lot of the recent blockchain bubble. As many know, people tend to forget or ignore the past, despite the fact that it always tends to repeat itself. Of course, the majority of trading websites and investor publications are talking bullish on cannabis. The big fish always need to find ways to suck chasing retail longs into buying their sells and ways to squeeze retail shorts into buying to cover up at these levels. Just as I warned everyone about the dangers of Bitcoin at the peak of that bubble, I'm now warning people of the same with cannabis. I'm not saying that long term some of these stocks can't be a good investment, but it is far too soon to know which ones will end up being the winners. We are at a record level bull and the market could potentially correct at any time. No bull market lasts forever and you don't want to be caught at the top of a hyped up cannabis sector when the crash happens. TLRY has an $8 bill valuation (about 200 X yearly revenues) with a net loss that increased 600% year-over-year. CGC has a $10 billion valuation (roughly 100 X yearly revenues) with a net loss that jumped 1000% year-over-year. The market cap of CRON is $2 billion (about 165 X yearly revenues). Clearly these market caps are beyond ridiculous and it would do everyone good to take a look at the following chart as a reminder of what can happen to investors that get sucked into hype and don't lock at least partial profits...

In light of the current overdone valuations my recommendation it to lock some short terms profits and wait for a correction before considering taking a longer term position at a more reasonable valuation. Greed is one of the biggest factors that contributes to trading losses and not taking some gains here could end up being pretty foolish. Bitcoin investors that didn't take profits when prices were at bubble levels are now in hindsight kicking themselves. The ability to have foresight is what really matters in this game. Many ended up losing all gains or got crushed after chasing the peak charts. Keep in mind that cannabis has a strong following, but many buyers are not the most sophisticated or experienced investors. Some may even be high on TLRY, CGC, or CRON products as they purchase shares at these inflated prices. Investing stoned is probably not the best strategy and will likely make for great candidates to bet against. Common trading sense should tell you to expect at least a reasonable correction and that sticking with day trading these cannabis movers makes the most sense for now. Trade smart, lock some profits, and best of luck to all cannabis players long and short!

*Join our Trading Room to access our research, education, and alerts. Email us at bprising1@gmail.com

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10 REASONS OVER LEVERAGING IS AN ACCOUNT KILLER

8/5/2017

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Over leveraging trades is probably the top day trading account killer. Therefore, I list it as a top misstep in my article 25 Fatal Day Trading Mistakes. New traders often blow up accounts betting with huge percentages of their accounts on single trades in an attempt to maximize gains. This causes several issues that can destroy profits. Avoiding this trap is one of the most important things I discovered while evolving my trading strategy. Once I stopped, it had a major impact on my trading success. Sadly, most people have to learn this particular lesson the hard way. This is because when you first start trading, you just don't know enough to understand why it is so dangerous. My trading improved a great deal when I began utilizing smaller size and shooting for consistent gains. Anybody can hit a big trade now and then. If you leverage enough money and you are right, of course the gain will be large. However, most people don't advertise the big losses that come along with this type of behavior. All that matters is your gains over a greater time frame such as six months to a year. Anybody can get lucky for a while, but what is much harder is being profitable on a regular basis. Below are ten reasons over leveraging can be an account killer...

1. Accelerates losses. When you start out trading with a small account its easy to get sucked into going in heavy to try and maximize the gain. If you are right, you are going to win big. But, if you are wrong you will also lose big. It can start a downward spiral that can lead to major problems down the road. Another factor that traders often forget about is that the gain required to make back a loss is much larger because you now have less capital. Never forget that Rule #1 is Don't Lose Money.

2. You miss other opportunities. One of the worst things about over leveraging is that you can get stuck being what's called an "ostrich." You stick your head in the sand and hope a trade goes your way. I've been here and it certainly is not fun when a trade is going badly against you. If all of your buying power is used up, you cannot trade other great opportunities that may be even better than the one you are stuck with.

3. Margin calls and restrictions. Over leveraging trades will lead you to margin calls and day trade calls because it often times comes along with exceeding your buying power. This can lead to restrictions and even more hassle. It is especially the case with shorting where you can technically lose more than 100% if a stock moves against you.

4. High Stress due to increased fear. When you are in far too heavy it can be a highly stressful experience. This is because deep down you know if the trade starts to go against you, you are in serious trouble. High stress leads to greater fear and therefore will cloud your decision making. Exiting at the worst time is common when in this situation.

5. Wastes more of your time. If you are taking big trades you will find yourself staying up later to do research and you will end up having to get up at the crack of dawn to eye the stock. You will find yourself so enamored with the trade that you will not even be able to leave the computer. I know that sounds crazy, but its very true. Anxiety levels will be high and a slight change in movement can make you very uncomfortable.

6. More easily influenced by talking heads. You are going to find yourself much more influenced by what other people are saying about a stock. Fools on social media or television will say things that you might otherwise ignore and they can get in your mind a lot easier when anxiety is heightened.

7. Market makers will drive you crazy. If you find yourself trying to exit a large position market maker algorithms may take advantage by raising or lowering bids and asks. Also high frequency traders are always attempting to front run you.

8. You will lose sleep. If a trade goes against you, you might try to swing it in an attempt to get back your unrealized loss. In a case like this you can forget about sleeping. And obviously this can have a bad impact on other aspects of your life.

9. It eats up your buying power. When you are over leveraged, your buying power will be much smaller or non-existent. Therefore, you will not be able to enter other trades that you may find interesting. The following day it will start at zero if you are holding 100% of your cash in a stock overnight.

10. You can end up owing your broker. If you go in with something like 200% leverage and a stock goes badly the other way, you can lose your entire account, but you can also end up owing your broker even more money. Most brokers will allow you to leverage four times your money if you are designated PDT (Pattern Day Trader). However, this is like pouring gas on a fire. A good example is when the KBIO fraud ran 1000% on the supposed stake by the snake Martin Shkreli. This destroyed accounts of those who were holding short big overnight. It was so bad, a trader named Joe Campbell actually started a Go Fund Me page just to try and pay back the $100,000 he owed his broker E-Trade. It's best to avoid shady bankruptcy related stocks.

The bottom line is over leveraging is something to avoid. Certain setups may be better than others and you do want to know when to capitalize by going heavier and when to go lighter when the setup is less exciting. One of the most important things a trader can realize is that choosing to not over leverage will seriously improve your trading success. If you are skeptical and decide to ignore this advice, be ready to pay a high price in tuition cost. Newer and more experienced traders would be very wise to seriously take this article to heart. Take the stress off of yourself by entering trades with 10-15% of your cash and avoid altogether borrowing money from brokers. Please do not be the next trader to have to start a Go Fund Me page!

*If you are interested in learning more about day trading please email me at bprising1@gmail.com

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15 WALL STREET MOVIES YOU CAN'T MISS

7/15/2017

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1. Wall Street 98%

The classic Wall Street film about a stock broker who wants a shot at the big time. The movie is well directed by Oliver Stone and stacked with a great cast. Michael Douglas won best actor for his roll as Gordon Gekko and it's well deserved. This is a can't miss film and the best Wall Street movie to date.

Great Line: "Greed is good. Greed is right. Greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit."

Cast & Crew Movie Trailer

2. The Big Short 95%

The Big Short is clever, well acted, and has a killer cast that is at their best. The movie is based on a true story about the American mortgage crisis. Finance can be a boring subject for many people, but the film does a great job of keeping the subject interesting via creative scenes and celebrity explanations.

Great Line: "Wall Street loves to use confusing terms to make you think that only they can do what they do."

Cast & Crew Movie Trailer

3. The Wolf of Wall Street 94%

A top notch film about the crazy life of Jordan Belfort, the founder of the penny stock brokerage firm Stratton Oakmont. The movie is very well cast with strong acting performances by Margot Robbie, Leonardo DiCaprio, Jonah Hill and many others. It's not for everyone with its numerous raunchy drug related and nude scenes, but the movie is nothing short of excellent.

Best Line: "Hey fellas, look what I found in my pocket. A years salary. You know what I call them...Fun Coupons!"

Cast & Crew Movie Trailer

4. Wall Street 90%
Money Never Sleeps

Oliver Stone does it again with this sequel to the 1987 movie Wall Street. The movie is loaded with some great talent such as Josh Brolin, Shia Labeouf, and of course Michael Douglas as Gordon Gekko. Another can't miss Wall Street film!

Great Line: "You stop telling lies about me and I'll stop telling the truth about you."

Cast & Crew Movie Trailer

5. Boiler Room 88%
This film is also based on the penny stock firm Stratton Oakmont which became famous in the Wolf of Wall Street. Another classic with some great movie lines, famous scenes, and a star studded cast including the likes of Ben Affleck and Vin Diesel. Definitely a must watch film that can be seen over and over!

Great Line: "A piker asks how much vacation time you get in the first year. Vacation time? You want vacation time go teach third grade public school."

Cast & Crew Movie Trailer

6. Billions 88%

Billions is a Showtime TV series, but flat out deserves to be on this list. Damian Lewis is just awesome as high flying hedge fund manager Bobby Axelrod. The guy really deserves an Emmy for his perfomance. Paul Giamanti is also great as the prosecutor looking to take him down.

Great Line: The show is loaded with so many clever lines I really don't know where to begin.

Cast & Crew Series Trailer

7. Margin Call 85%

An analyst uncovers information that could ruin a brokerage firm, so extreme measures are taken in order to control the damage. Margin call is a solid movie with a loaded cast of which all turn in a great performance. However, it is fairly depressing and slow at times. Regardless, its a movie I recommend seeing.

Great Line: "Yeah well I did spend $76,520 on hookers, booze, and dancers. But mainly hookers."

Cast & Crew Movie Trailer

8. American Psycho 85%

Christian Bale is great as a crazy, self-centered, and obsessed Wall Street businessman who doubles as a serial killer. The movie has a loaded cast and despite being pretty crazy, is very humorous at times. Bale has several hilarious lines that a "Wall Streeter" can certainly appreciate.

Great Line: "Well, I mean, I guess I'm a pretty sick guy."

Cast & Crew Movie Trailer

9. Gold 84%

Kenny Wells is a gold prospector searching for the big find. The film didn't gain much traction in theaters which surprised me. It took home $11.4 mill in the box office which is only about half of it's budget. It does have strong cast, some great scenery, and is based on an interesting true story. Definitely worth the watch!

Great Line: "I pet the Tiger!"

Cast & Crew Movie Trailer

10. Arbitrage 82%

Gere plays a hedge fund manager that gets caught up in some illegal activities which cause him to have to make some slick maneuvering in order to wiggle his way out.

Great Line: "You are not my partner. You work for me. That's right, you work for me. Everybody works for me!"

Cast & Crew Movie Trailer

11. Too Big To Fail 80%

Depicts the mortgage crisis from the view of the government and the big banks that were bailed out after massive fraud and criminal activity. It shows clearly that government bailouts actually enable and encourage criminal behavior. If you know you are going to be saved, whats to stop you from discontinuing the behavior?

Great Line: "Get up here. We have to start stacking sandbags."

Cast & Crew Movie Trailer

12. Limitless 78%

A down and out writer runs across a pill which allows him to access his brains entire potential. The movie has some stars, but also some questionable rolls added in and with weak acting at times. You would expect more from a Cooper and De Niro movie, but still a fun watch.

Great Line: "Me working for you, you'd end up as my b****."

Cast & Crew Movie Trailer

13. Money Monster 75%

Money Monster was a little disappointing. Expectations were high going in with such a strong cast and interesting theme. The film knocks off Jim Cramer's show Mad Money, but is actually even cheesier. However, the story is interesting and therefore worth a watch.

Great Line: "A glitch, a glitch. Shut up about the glitch!"

Cast & Crew Movie Trailer

14. The Pursuit of Happyness 75%

The perfect example of the importance of persistence. Will Smith does put in a strong performance, but other casting is questionable. A bit of a B like movie feel but the message is very srtong. No matter how hard things get, you must push through.

Great Line: "Don't ever let somebody tell you, you can't do something. You have a dream, you have to protect it. You want something...Go get it. Period."

Cast & Crew Movie Trailer

15. The Wizard of Lies 72%

A movie about the greatest ponzi scheme fraud in history with billions lost. A great lesson for any investor thinking about shelling out their money. The players that appear the most legit can be the biggest frauds of all.

Great Line: "You're asking me how I didn't know? You're the FBI, how did you not know?"

Cast & Crew Movie Trailer

A B.P. Rising original article

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25 FATAL DAY TRADING MISTAKES

6/20/2017

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When working as a day trader, costly mistakes are going to be inevitable. Especially when you are first learning. These setbacks can damper your morale, your trading account balance, and even your pride. But, never focus too negatively on them, because often times they can provide valuable lessons that will benefit you going forward. I've realized through teaching that human beings have to learn certain things the hard way despite how may times they are told. Regardless of how often I tell students not to over leverage their trades for example, they still seem to do it. The fact is pain is one of the best teachers you can have and it should not always be considered a negative. You tend to learn a lot more when something hurts. When you have a big trading loss it always ingrains itself in your head and you will most likely never forget it. Face the pain, learn the lesson, and then don't make the same mistake twice. Below is my list of 25 fatal day trading mistakes to avoid...

1. Not having faith in yourself. You simply will not be largely successful at anything without having faith in yourself and your ability to make things happen. Many people fail right at the jump by never starting or finishing something because of lack of believe that they can even truly do it. You can't just have the attitude of hoping things will workout for you. You have to make them workout for you by being relentless. You need to adopt the attitude of "No Plan B!" Failure is simply not an option and you have to do whatever it takes.

2. Not studying enough before starting. Too many traders jump into day trading with real cash without really being prepared. Be sure you are constantly educating yourself by reading books, watching Youtube videos, scanning internet articles and have some solid knowledge before you start making live trades. You wouldn't perform open heart surgery without being prepared would you?

3. Not learning from a successful trader. Many traders make the mistake of learning from someone who is not even trading successfully themselves or yielding profit on a regular basis. If you learn the wrong way starting out, your foundation is going to be broken. You will eventually have to unlearn everything and rebuild from the bottom up just like a house. This can end up costing you a lot of time and headache.

4. Giving up too easily. Persistence is one of the most common traits that millionaires possess and yet it is something of a rarity. I run into people all of the time who are ready to quit the second things don't go their way. Pushing through when times are tough such as dealing with big trading losses is absolutely paramount. I cannot stress this enough. I ask my students all of the time..."When is it alright to quit?" The answer should be "never." Try it out and see what happens for you.

5. Not keeping losses small. Every trader should have a loss threshold % set in their mind. An amount where they determine they will exit a trade and not let the trade go any worse against them. Losses always hurt, but as long as you don't let things get out of hand, you will come back and live to fight another day.

6. Chasing stocks too high. Too many traders get sucked into the herd behavior and end up chasing a stock when it's at the top, just to get crushed when the selling begins. Ride the trends, but don't be what I call a prawn. This is someone who chases the top and bottom feeds on stocks at the bottom that have no hope of recovering.

7. Over leveraging positions. Do not take position sizes that are far too big for your account. Going in single trades with say 50-100% of your cash or more is simply not a good idea. Especially if you are just starting out. I understand the thought is that you want to make the max possible on the trade by utilizing max leverage, but you can also lose the max possible if you are wrong. And let me save you the suspense...You are going to be wrong plenty. Try taking trades with 5%-10% of your account and refrain from borrowing money from brokers. Another important reason to avoid over leveraging is it can eat up your buying power and cause you to miss out on other potentially profitable trades (opportunity cost).

8. Over trading out of boredom - When the market is slow or volume is weak its easy to get into a trade that was forced out of boredom. You are much better off to just stay away and sit on the sidelines than to risk taking a loss that can set you back a day. Remember that the first rule of Trade Club is "Don't lose your money" and the second rule of Trade Club is "Don't lose your money!"

9. Failing to control emotions. Emotional control is not easy as we are all emotional beings. But your emotions can tear you up when trading if you let them. Sometimes your rationale will go out the window and fear will take its place. I personally find that exercise such as playing sports, lifting weights, running sprints, jogging, or yoga can be a difference maker. Moreover, it is a good idea to pay attention to what you consume. Caffeine for example can increase anxiety. Trading is a stressful job and that angst has to get released on something other than throwing your monitor or keyboard!

10. Not taking profits due to greed. I like to say that being a little greedy is a good thing. But being too greedy with your trading will have negative repercussions for sure. Greed drives us all, but be sure you are locking that green when the profit is there or it could be short lived.

11. Not learning from past mistakes. Some people will make a mistake and then continue to make the same mistake over and over. You have to learn from the mistakes you've made in the past and make the necessary adjustments to improve and grow your trading skills. Just like anything else in life, you get better by doing something. As the saying goes..."Practice makes perfect."

12. Not setting limit orders. If you set market orders you are basically at the mercy of the market maker to fill you order where they please. A limit order makes sure you get filled at the price you are wanting. Sometimes, if you need a quick and immediate fill a market order can be of benefit to you. An example would be if you are long and very negative news drops suddenly. You would be in need of a quick exit before the selling takes over.

13. Misunderstanding margin rules. Be sure that you are well aware of all margin requirements and SEC regulations so you can avoid forced buy-ins from brokers, margin or day trade calls, and trading restrictions.

14. Listening to talking heads. Most (not all) talking heads on television or social media are just out to entertain you or further their own agendas. I find that most of the talk is absolutely worthless and will in no way help your trading. The biggest value I find is simply being informed about world and economic news that will be relevant to the market behavior.

15. Trading without real-time software. You need real-time software in order to day trade stocks successfully. Yes the software can appear like Greek at first, but once you learn and get comfortable, you will find you cannot trade without it. The speed at which you can take entries and exits, the access to level 2, charting, and streaming news is a must. A good example would be two of the ones I use Das Trader Pro and Fidelity's Active Trader Pro.

16. Revenge trading. When you've had a tough time trading a particular stock and you attempt to continue trading it, this can be considered a revenge trade. I've found that most of the time you attempt this you just end up losing more money. If its just not working with a particular stock, simply get rid of it and add it to the no trade list.

17. Not understanding news release verbiage. Press releases are often times deliberately made out to be confusing and deceiving. Ever notice how important information happens to get buried deep into a sea of gibberish? This is because the companies always have a motivation to get their stock higher and they know many traders will jump all over it without even reading thoroughly. So, don't be surprised when they take advantage. Recycled pr's and misprints are common place. The new thing is fake landing pages made out to look like legit websites. The internet has given these frauds an ability to get attention.

18. Not understanding financial statements. Financial statements can be very confusing. Be sure you understand how to read balance sheets, income statements, 10q's and 10k's (earnings), form 4's, form SC 13 G/A's, etc. Fortunately with day trading company fundamentals are less important than technicals. When assessing earnings, I look at important basics such as whether revenues, profits (EPS), and expenses increased or decreased year-over-year. I also assess how badly a company needs cash. This can make a public offering of shares more likely, which can decrease stock value and dilute investors. Hence the short play!

19. Playing sideways moving stocks. When a stock is running sideways its tough to gauge whether it will pop higher or go lower. It's basically rolling the dice or playing a craps shoot. If you like to gamble, go to Vegas. You want to utilize calculated and intelligent risk. If a stock is holding support strong and has solid news, it is likely to get higher. If the news is weak and its having a tough time with resistance, it will probably get lower. Be patient and wait for the right setups to take entry. You are looking for volatility pops to short and dips to pick up long.

20. Trading with rent and food money. If you are trading with money you really cannot afford to lose then it's going to be more emotional for you and will likely cloud your decision making. Whether you win or lose becomes too emotional for you and mistakes will get made. Growing a small account is tough and you do have to start somewhere, so work on saving money to add to the trading account wherever possible...tax returns, side jobs, etc. Instead of buying that fancy watch or expensive dinner, stick that money into the account and order take out. This is called Delayed Gratification and it will help to get you ahead.

21. Not being aware of the Law of Attraction. The most highly successful people are all aware of the Law of Attraction. Thoughts are energy and whatever dominates your thinking tends to eventually convert itself into reality. Making bad trades? Maybe you are part of the cause via a negative thought process that is affecting your actions. Read up on and Youtube people such as Napoleon Hill, Norman Vincent Peale, Les Brown, Tony Robbins, Ray Lewis, Oprah Winfrey, Steve Jobs, Andrew Carnegie, Jim Carey, Will Smith and many more who talk openly about it. Whatever the mind can conceive and believe, it can achieve.

22. Having a negative mindset. A negative mindset will attract negative things in to your life. It's just as simple as that. Pay close attention to your thoughts and the words coming out of your mouth. What are they saying? This can give you a great glimpse into what thought energy you or anyone else is putting out into the universe. Nature will give you what you want if you force it to through strong positive thought vision and then followed by action. Wake up thinking "today I am going to kill it!" Believe it wholeheartedly and then go do it!

23. Trading too many stocks at once. Laser focus! Some people like to trade multiple stocks at one time, but in my opinion it's too hard to keep track. Find yourself one or two stocks that have nice volatility and trade them in and out all day. Diversification is great for investing because you don't have to worry about the daily volatility of the market as you are holding the stock for the long term. But, for day trading it's much too distracting to have to worry about the daily movements of so many different stocks. It's just too much to manage, so keep it simple!

24. Not utilizing stops. Stop losses will protect you from the fluke situation and from a stock going too far against you. Either a mental or physical stop can be utilized. I use more mental, but what you choose depends on what you feel is best for you. Be sure you set them about ten cents above resistance areas in case of a breakout when short and about ten cents below support in case there is a crack when you are long. Stops will get targeted when too close to these areas. They are a great way for market makers to get cheaper shares.

25. Failing to take responsibility for your mistakes. There is something called an "externalist" and an "internalist." An externalist blames all outside factors for their mistakes and things that go wrong. An internalist (which is what most successful people are) knows that they alone are responsible for their actions, decisions, and mistakes. Take responsibility for your bad trades and learn from them. Nobody forces you to pull the trigger on any trade idea as it's your decision alone. Everyone (including top pros) is going to make mistakes and have losing trades at times. The key is learning from these mistakes, being resilient, and consistently improving your game. Trading success is sure to follow!

*If you would like to learn more about day trading please email me at bprising1@gmail.com to discuss becoming a part of the B.P. Rising Team.

- A B.P. Rising Original Article -

7 Comments

20 Day trading TIPS for beginners

6/15/2017

1 Comment

Day trading can be a very tough and emotionally draining job. Beginners are misled daily to believe that it somehow is going to be a cakewalk. This is simply not the case. Day trading is one of the toughest jobs that exists and humbles many very intelligent people on a regular basis. There are people all over the internet talking about how you can become a millionaire within a year or even overnight and its complete baloney. I'm here to give everyone the real and not to mislead you into false thinking. If anyone thinks being successful in this field is not going to require serious hard work and hustle then you will quickly be educated. Day trading is very similar to operating a small business and things are not always going to go your way. In fact, its the only job I'm aware of where you can actually lose a paycheck. However, day trading can also be a highly rewarding pursuit. With proper discipline, patience, persistence, and resilience, you can achieve financial freedom, work for yourself from any where, and you can make a lot of money doing it. Below are 20 crucial day trading tips I've learned from experience...

1. Trade small when you are first learning. A new trader with a large account is a potential disaster waiting to happen. When you are trading with big money and don't know what you are doing, big losses are inevitable. Get practice and build confidence by trading with small amounts of money until you become more seasoned. Paper trading is not the same as trading with real cash because the true emotion is removed from the equation. Get a broker who is not going to destroy you with fees and wipe out a small account slowly. Something like Fidelity or Interactive Brokers is a good place to start. Certain lessons you will have to learn the hard way and you want the cost of tuition to be as cheap as possible.

2. Open two separate brokerage accounts. When you start out trading under $25,000 you will not be designated as a Pattern Day Trader (PDT). Instead of being able to make unlimited day trades you will be limited to three day trades in a five day rolling period. If you open two separate brokerage accounts you can get six day trades in a five day rolling period (3 from each broker). These rules can be a real pain, but this is not necessarily a bad thing. It can actually force you to be smarter and more careful about the shots that you do take. More trades does not necessarily equate to more money. It can also end up causing you more losses.

3. Trade like a sniper and wait for the right opportunity. Pick your shots carefully and be patient with your entries. With a limited number of day trades you don't want to waste them. The key is to focus on quality over quantity. Once you are designated PDT this won't be quite as important. Look more for swing plays because holding overnight will not count as a day trade. Look for strong news that can move a stock for a few days and ride the momentum.

4. Don't waste a lot of time on research. Research is for investing and day trading is an entirely different animal. You are trading on charts, price action, volume, and support/resistance, where as with investing you are betting on companies you believe will grow in the future. If you are investing in a company like Amazon for the long term then by all means dig in. With day trading, be more concerned with shorter term news catalysts. I will at times do a quick earnings check to get an overall view of the companies financial position.

5. Keep things cheap and simple to start. When you first start trading and have a small account, the last thing you need is to be paying for software that eats it up. I do not pay for any software. I use the software that comes free with my brokerage accounts. Keep it simple and as cheap as possible.

6. Keep living expenses minimal. Far too many people have over priced cars or homes and are spending way too much money to try and impress others. Instead keep the expenses low and live cheaply. Stick that money into your account instead and use it to grow. In my opinion, money is best used to make you more money. I would much rather have cash stacked in my account to do whatever I want, than to show off material baloney that really doesn't matter in the end. Later when you are printing dollars you can buy whatever you want. I personally recommend you use it more for life experiences such as travel.

7. Be sure you are using the proper trading software. Trading with the Robinhood app or via your brokers website is the same as playing baseball without a bat. You cannot see level 2, timing is delayed 15 minutes, and you just simply don't have the proper tools overall. Be sure you are utilizing real-time software such as Das Trader Pro, Fidelity Active Trader Pro, or TD's Think or Swim.

8. Investing is not going to get you very far. Making 10% a year return on a $10,000 account is not going to get you to full-time trader status. Trading large cap stocks won't help much either as the % gain potential is much smaller than with that of small cap stocks (unless you are playing with options). The OTC market is comprised of mostly scams and therefore I do not recommend messing with it. Small cap stocks on the Nasdaq and NYSE Mkt are what I find to be the bread and butter. They actually move with enough volatility to get someone ahead with a smaller sized account but are still legit companies for the most part. Watch out for Chinese stocks and shipping.

9. Do not over leverage your trades. When you trade too heavy you risk the possibility of margin calls and forced buy-ins from your broker. A beginner should never be in any single trade with more than 10% of their total cash (not total buying power.) A beginning trader should never borrow on margin from their broker. If you are wrong it will just accelerate your loss and could put you temporarily out of business.

10. Have a set loss % threshold. Controlling emotions is something that must be worked on and you will get better at it over time. In my opinion all humans are born naturally greedy and emotional (some more than others). Everyone's risk tolerance is different, but for me I start to get uneasy when my unrealized loss starts to exceed the $5,000 range. This of course is all relative to your specific situation and account size. Sometimes patience pays off and that unrealized loss can turn into a gain. However, when you cut losses before they get out of hand, at least you know you can live to fight another day.

11. Focus more on solid entries and exits. Try not to focus too much one how much money you are up or down, but on getting solid entries and exits. Practice and learn how to get wins. If these are on point, the money will be there eventually.

12. Be a consistent winner. I like to use the analogy of trading like Ted Williams and not like Babe Ruth. Williams was a very consistent batter and that is what you want when day trading for a living. Babe Ruth hit a lot of home runs but he also would strike out just as often. A big strike out when trading can not only mean the game is over, but the season as well.

13. Be sure to lock that green. This is probably one of the most important mistakes I see new traders make. They are profitable on a trade, but they decide to get greedy and proceed to give back every bit of their gain. Remember Gordon Gekko's quote from the movie Wall Street..."Bulls make money, bears make money, pigs get slaughtered." This is a very true statement!

14. Work off of support and resistance. You will find that in day trading this is your bread and butter. The meat of your gains will be knowing how to play in between the established floor and ceiling. Where is the stock holding support and where is it showing resistance? Short resistance areas and buy to cover at support. Buy long at support areas and sell into strength at resistance.

15. Set physical or mental stops. I personally prefer to use mental stops. I find that they work best for me. But, everyone is different. Stops protect you from the bad situations. For example, a random public offering of shares when long or very positive news when short. Keep in mind that sometimes the stop will not get triggered on very fast drops due to lack of buying. Also, you will want to keep the stop at least ten cents above resistance when shorting and below support when going long. Algorithms, market makers, and big fish love to trigger them.

16. Set price targets. Price targets are great, but there is no guarantee they will be hit. Be sure to know when its time to be patient and when its time to cut the loss.

17. Don't chase stocks long that are ridiculously high. Depending on the situation it usually best to be patient on big movers and not hit them right before the correction. Wait for the dip to support and get the stock at a cheaper price. Then let it ride.

18. Start out working full-time. A common question I get is "how do I become a full-time trader?" My answer is to start out working a full-time job to pay your living expenses and trade part-time, then graduate to trading full-time and working part-time, and then finally to trading full-time and dropping the job completely. You have to have enough capital to make money and also pay expenses to do this for a living. Make it a gradual process with that end goal in mind.

19. Be persistent and resilient. These are the most important aspects of day trading in my opinion. There are going to be tough losses at times and too many people quit the second things go wrong. Go ahead and assume you will take beatings at some point. Being successful in any endeavor requires beating back adversity and continue the journey no matter what.

20. Stay disciplined and stick to your rules. There is a reason for setting trading rules and they only work if you stick to them 100% of the time. It only takes disobeying them one time to pay a painful price. It's not easy as we are all emotional beings, but you want to trade as much like a machine as possible. Think Ex Machina or The Terminator. Day trading is like a business and you have to handle every decision with detail and care.

*If you would like to learn more about day trading please email me at bprising1@gmail.com to discuss becoming a part of the B.P. Rising Team.

- A B.P. Rising original article

1 Comment

The Rise of fraud on wall street

11/18/2015

The internet has allowed for global access to potential Wall Street related fraud. Investors and traders are connected like never before and word travels fast. But, how accurate is the information you are receiving? Traders are so quick to act on large volume and news that they rarely read through the material carefully. Then when a stock goes against them, that is when they decide to do their due diligence. Data on a company can get out so fast it is hard to fathom. A kid sitting at his computer in China can create a false Twitter account and post something that can send a stock tumbling immediately. Companies abroad in places like China have it even easier as they are not adhered by the restrictions of the United States and are almost immune to prosecution. Websites such as Twitter have given these people a huge potential platform for this type of behavior. Where is the SEC in all of this? Who knows! The rise of fake landing pages and imitated Twitter accounts are costing investors billions of dollars. "Short and distorts" and "pump and dumps" are rampant and the SEC has recently decided to crack down on these fraudulent Twitter posts. Chinese low float stocks like BNSO and EFUT (which in my opinion are outright frauds) are the perfect target for price manipulation. These companies shouldn't even be allowed to trade on Nasdaq, but rather belong on the OTC Market. These stock exchanges need to do a better job of vetting these companies so they can help protect investors alike. Bonso Electronics BNSO recently ran over 100% on earnings and then faded quickly leaving retail traders holding the bag. The company sells kitchen and bathroom scales. BNSO's website also looks like something a kid put together. The copyright date at the bottom of the website still says 2013 (http://www.bonso.com/en/). Efuture Information Technology EFUT has run about 50% in the last five days on high volume with absolutely no news to speak of. They have an earnings report coming this Friday afternoon which will most likely be less than impressive. If you watch the bid and ask carefully you can see 50k and 100k bids appear, disappear and then reappear. This is most likely an attempt to hold this stock up as a large bid makes the stock appear to be bullish. Along with this tactic, you could see multiple and consistent single share buys which help manipulate price (price just reflects the last trade regardless of the number of shares). There is no way to know if it is the company itself engaging in this activity or some outside firm. Either way, the entire thing is extremely suspect. Most likely this is done by a hedge fund or brokerage firm manipulating the price and attempting to create a false market for the stock. They keep the stock up by controlling the majority of the shares, not allowing any selling, and they continue to buy. When the dumping begins a flood of shares hit the market and then supply and demand take over. The stock crashes and retail traders get crushed. Moreover, these supposed earnings of both companies are unaudited and out of Beijing, and Hong Kong, China. It's time for the U.S. and the SEC to wake up to these scams and start to crack down for the good of the U.S. retail trader. B.P. Rising Research will be doing an independent investigation to find out more information on these companies. Most retail traders work very hard for their money and are just looking to earn extra cash to take care of their families. Unfortunately, they are treated like puppets by the big banks, hedge funds, brokerage firms, stock promoters, and scam artists domestically and abroad. It's time for us to utilize the power of information and technology to inform each other and retaliate against those looking to take advantage. My recommendation is that it's probably best to avoid Chinese stocks completely. You should especially stay away from the low floaters that are thinly traded and easy to manipulate. I recently set a price target of $1.15 on BNSO and it's just about there. The EFUT price manipulated pump and dump will likely falter when their actual earnings are released.

The following are ways to avoid falling into this trap: Read all press releases meticulously, watch out for inexplicable price action or volume, avoid thinly traded low float stocks, and be weary of any company based outside of the U.S. especially China. Watch for suspicious market maker activity such as fake bid and asks, be weary of Twitter pumping and distorting, misleading or false PR's, unaudited earnings, and forward looking statements.

Another recent example of suspect dealings is the low float stock KBIO which was supposedly liquidating its assets and winding down operations as of November 13th. Less than a week later, a large stock purchase is announced. Today the company has announced a purchase of 1.2 million shares by Turing Pharmaceuticals CEO Martin Shkreli (the same guy who decided to charge $750 for one tablet of Daraprim). The stock has run from $2 to almost $20 after hours. It has probably destroyed many investors who sold their broken shares to Mr. Shkreli between 60 cents and $2.43. Do you think KaloBios Pharmaceuticals was not aware that this transaction was going to take place? I'll let you decide. This entire game is rigged for the insiders my friends. However, as a retail trader, you can certainly make a lot of money if you are on the right side of this racket. Educate yourselves on the prevalent scams that exist, cease being naive and gullible, and use this information to grow your account. Please my fellow traders tread carefully and always do your due diligence. Fraud is on the rise and it will likely only continue to get worse.