Posters keep asking here on ET from time to time: Is it possible to do this or make that much? The short answer is Yes.
Of course there is also a long answer: But not for you. Just to show that it is possible, here is a guy from Reddit who did that, but he is a pro's pro and he did it with a no risk, screw you account, thus without pressure. His real account is way more conservative. Nevertheless he used research, due diligence and high leverage. In short he is skilled...
"Proof/screenshots and write-ups detailing the climb in previous posts:
Original post: $2,000 to $64,000
First update: $2,000 to $200,000
In the past two months, my positions have gained to just over $400,000. I really wanted to wait until I hit half a million to make an update post, but I'm probably going to de-risk a lot (I think Q1 2019 will have a lot of catalysts, which is probably when I'll re-enter), so this will likely be the last update for a while:
Of course there is also a long answer: But not for you. Just to show that it is possible, here is a guy from Reddit who did that, but he is a pro's pro and he did it with a no risk, screw you account, thus without pressure. His real account is way more conservative. Nevertheless he used research, due diligence and high leverage. In short he is skilled...
"Proof/screenshots and write-ups detailing the climb in previous posts:
Original post: $2,000 to $64,000
First update: $2,000 to $200,000
In the past two months, my positions have gained to just over $400,000. I really wanted to wait until I hit half a million to make an update post, but I'm probably going to de-risk a lot (I think Q1 2019 will have a lot of catalysts, which is probably when I'll re-enter), so this will likely be the last update for a while:
- Winning positions were YELP, IAC, and AZO (basically the same positions I noted I was playing in the fourth bullet of my previous comment). KORS almost made me a ton of money, but came out to be a wash/small gain due to the June trade war bullshit. Lost about $50k on my shorter-term contracts, but made that back on my longer-term contracts in the past couple of days after earnings.
- As mentioned previously, I'm not too bullish on the overall market going forward. I'll have most of my risk off the table by the end of the month. I have small plays in NVDA and AMAT earnings, but not much else that's too compelling. I think the market might climb through the rest of the month, but with increased volatility, then stagnate through year-end. I think heightened trade war tensions might create short-term downside vol, but nothing sustaining (hence the stagnation through year end). I believe the real negative catalyst will be sustained effects of rising interest rates, which seems to have been forgotten or buried in the past few months. I'm hoping to load up on downside bets around EOY or early 2019.
- I'm guessing there's been a lot of discussion on TSLA around here, but I haven't read any of it, so here are my thoughts: TSLA will never go private. There's not a financier insane enough finance that deal. As a comparison, JWN (which is actually profitable) tried to go private last year, on Baa1 rating at about $9bn market cap, which required "only" a $2bn capital raise, WITH the backing of one of the most respected consumer/retail PE firms in the world, yet was unable to secure financing at an acceptable cost. Do you really think any bank is going to finance a $70bn mkt cap (at proposed $420 take-private price) Caa1 junk company that is burning through cash? It astounds me that TSLA would bounce so much on a random Musk tweet, which have been proven time and again to be nothing more than Elon's whims and fantasies, and severely out of touch with reality. This is further exacerbated by the fact that the existing bonds, currently trading well under par, have a CoC clause allowing bondholders to put the bonds at 101. The whole situation is such a circus. The only situation I see this potentially materializing is if SoftBank or one of the Saudi entities with too much cash to throw around decides to entertain the idea just for clout. Despite my pessimism, I hope it can stay bouyed for the next few months, because the combination of rising rates, maturing debt (Mar 19), inaccessibility to capital markets, and uncontrollable cash-burn will lead to the perfect storm of a very severe correction around the time I'm hoping the markets will turn aroud.
- To answer common questions that came up after my previous post: 1. My background is in IB, HF, and PE, with the majority of my experince in PE 2. I don't have any reading recommendations or suggestions on how to learn. Bascially everything I know about and all the tools I use when investing, I picked up on the job. 3. I don't have any thoughts on random XYZ ticker that you DM me. I have a very small universe of tickers that I keep apprised of, and those are the only tickers I know intimately well. 4. My style is a hybrid approach; screen for fundamentals, and monitor 'technicals' and potential catalysts for entries. I don't have much else to say on how/what I screen for, etc.
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