+ Meir Barak
Tradenet's Chairman and Head Trader
Meir Barak, CEO of tradenet, is a well-known analyst, successful trader, senior lecturer, professional mentor and author of The Market Whisperer Day Trading Book. He 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 which has successfully taught 30,000 people worldwide to intelligently trade the US markets. He 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.
I was educated to be an employee, save money, and let strangers manage my finances. The harsh reality is that after paying tax I was left with only a portion of my salary. We all know hard work can at best provides us with a comfortable life but doesn’t make us 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. Long working hours and seeing my family only on weekends was not a good recipe for a happy life. In 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. 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.
After several weeks of self-study, dozens of books and 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.
It took 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. 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.
During one of my searches, I found an audio trading room for day traders. This unique room is a meeting place for professional traders to exchange opinions during trading in a virtual online trading room. What is special about the trading 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, 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 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.
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 stock market operates by well-known rules. Of course, only those 10% who make money from everyone else know those rules.
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 trading room other people who wished to become professional traders like me. Later, I became one of the trading room analyst, alongside Chris and Mark. At the same time, I started training more and more traders who dreamed, as I had, of becoming traders. Today, now that I have established one of the world's largest day trading schools and have trained some seven thousand day 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!