Meir Barak is a professional US day trader and a leading Wall Street expert who regularly appears on TV and in the financial press. Meir founded Tradenet in 2004 and serves as the company’s chairman, senior lecturer, chief trader, and professional mentor in the Tradenet Analyst Room. Meir owes his financial success entirely to the US stock market. By sharing his and Tradenet’s day trading strategy, he strives to help others achieve the same high quality lifestyle.
How I Became a Stock Trader
Just like you, I was educated to be employee, save money, and let strangers manage my finances. The harsh reality is that after paying tax you are left with only one quarter of your salary, and therefore hard work can at best provides you with a comfortable life. Hard work will not make you a millionaire, and we can’t all win the lottery or be born into a rich family.
Before becoming a market trader, I founded a technology company and served as its CEO. If you think that working in the technology business is glamorous or exciting, let me put you straight. Long working hours and seeing your family only on weekends is not a good recipe for a happy life. I fact I remember one morning I was given the rare opportunity to take my little daughter to nursery. When we arrived I discovered that not only had I taken her to the wrong nursery, but that she hadn’t attended this nursery for a long time. It was at this point that I made the decision to completely change my life. I decided to work from home. I was sick and tired of waking up early, driving to work in the morning traffic, and returning home late at night when my family were already asleep.
Around that time, I became interested in trading on the US stock exchanges. Because of the intensity of my day job, the US stock exchange was the only possibility for me. The US stock exchanges open at 9:30am and closes at 4:00pm (New-York time). Ignoring daylight saving, this usually means 2.30pm – 9.00pm UK time. I discovered a wonderful world of professional players, where some dreams come true and others are shattered. Since I had a high opinion of my own skills, and believed there was no reason why I should not be as successful as others, I plucked up the courage to open a stock trading account with a well-known US brokerage.
Market 1, Meir 0
After several weeks of independent study, during which I read books and investigated dozens of relevant websites, I decided it was time to make my first trade. I sat at my desk, looked at the monitor and took the giant leap, a leap that I had been mentally preparing for several weeks. I bought a stock trading at $40, and clicked the mouse with a shaking finger. Ten nerve-wracking seconds later, I read in the broker's order book that my mission had been successful. For the first time in my life, I had bought a stock! I remember to this day how my heart pounded in the seconds following that mouse click. I felt as if my heart was going to jump right out of my chest. I saw and heard nothing around me. The world around me simply vanished, leaving only me and the market. I was glued to the monitor, anxiously counting each cent of movement up or down. When suddenly the stock was up, I worried that it would retrace, and I clicked the sell button with the same shaking finger. Had the sale gone through? Did I make a profit? I looked at the order book – no, the stock had not been sold! Another hysterical click later and I was finally rid of it. The sense of relief was enormous - and I was up $100. Or so I thought.
I took a 1-hour to recuperate, and after this break I returned to check my account. To my amazement, I found out I held a short position in the share! It turned out that my first sell order had gone through, and my second sell order had shorted the position... My final score was a $70 loss. My first experience ended in a resounding failure: Market 1, Meir 0.
The more I learned and made progress, the more questions emerged for which I had no answer. At that time, there were no courses offering practical training in day trading on US stock exchanges. However and according to rumours, there were several uniquely skilled professional traders who for a fee would train beginners like me. But I was unable to find them.
I continued trading and losing money and was still troubled by many questions. It is well known that 90% of day traders lose money. As a die-hard optimist, I believed I could be among the other 10%, like those professional traders who earn their living on the stock exchange. I tried to figure out who were those mysterious 10% who were taking money from me and from the public. I began to search.
A trip to the US in search of answers
During one of my searches, I found an audio chat room for day traders. This unique room is a meeting place for professional traders to exchange opinions during trading in a virtual online chat room. What is special about the audio chat room is that the room managers – well-known professional traders - respond verbally to written questions from traders in the room, and guide them in real time regarding which stocks they should buy or sell. Every budding trader dreams of an opportunity like this. Two of the room managers, Mark and Chris, renowned traders in the US, became close friends of mine, and are the two people who taught me the most. After several days in the trading room, I solved the riddle. I discovered who was taking my money. Several weeks later, I contacted Chris, introduced myself as a member in the room, and asked him to become my personal mentor. To my delight, Chris unhesitatingly agreed. Before he could have any second thoughts, I packed a suitcase and was on the first plane to New York, and from there to his home in Phoenix, Arizona. I remember well my first meeting with Chris. I was surprised to find out that I was dealing with a "kid" in his early thirties. This “kid” had already worked for a well-known trading company for 10 years as a market maker, and had been an independent trader since his late twenties. The two big cars in the driveway of his luxurious house in a wealthy Phoenix suburb made it clear what kind of market shark I was involved with. Chris, who came from a middle-class family, made most of his money as a day trader. Like many other traders I came to know over the years, he had left a great job, where he had earned hundreds of thousands of dollars a year, in order to make even more money by himself. People in the US who earn $20,000 a year (a very low salary by US standards) do not become day traders, because they are busy keeping their heads above water financially, and have no time to change their career.
Incidentally, you should know that because we live outside of the United States we are benefited by the time difference. This allows us to keep our day job and to experiment with the US stock exchanges at night, whereas the average American starts his working day in the morning, and is therefore unable to look at stock charts while answering the phone and attending morning meetings. According to Phoenix time (Pacific Standard Time), the US stock exchange opens at 6:30 AM. We started our tutoring day at 6:00 am, and by 1:00 pm were off to play some golf. I paid $1,500 per day in tuition. This was not much, because by spending time talking to me, Chris missed out on opportunities that I thought were worth more than that. I was amazed by how he worked, and was surprised by his self-control and familiarity with the market. I was also astounded at the financial potential in stock trading and to my surprise; I learned that the US stock market operates by well-known rules. Of course, only those 10% who make money from everyone else know those rules.
Can day trading change YOUR life too?
Needless to say, my life changed that day. No longer does financial necessity make me go to work every morning. I owe my financial success entirely to the US stock market, and I did it all working three to four hours a day at home. After returning home, I had the knowledge, but could not yet call myself a professional trader. Slowly, over the years, I accumulated more experience and learned new things (learning never ends). I brought to the US chat room other people who wished to become professional traders like me. Later, I became an analyst in the US chat room, alongside Chris and Mark. At the same time, I started training more and more traders who dreamed, as I had, of becoming traders on the US market. Today, now that I have established one of the world's largest day trading schools and have trained some seven thousand traders, I feel obligated to tell you that day trading could change your life, too.
I feel I can share day trading secrets with you, and clear your path to the best profession in the world.
Are you ready to take the trip?