The Best Thing That Can Happen to a New Trader… Is a Loss

This may surprise you, but I believe one of the best things that can happen to a brand-new trader is to take a loss.

Don’t get me wrong. It’s great to win, like we have, and be profitable on your first trade, first five trades, or even your first 10 trades. But an immediate winning streak like that may be setting you up for disappointment later.


Too much success can give new traders an overinflated amount of confidence. You start to think that trading is easy and there isn’t much to it. That whatever you used to choose the winning trades is ALL you will ever have to use; that you found the magic bullet to trading success. You start taking more and more risks… and then disaster.

Look, I can speak to personal history that all I have mentioned is possible… because it happened to me when I started out.

I look back and think if I had suffered a loss or two or more to start, I would have had to learn earlier what it takes to manage a trade when it goes against you.

That’s what I want to show you today, with a follow-up on the GMCR covered call idea.

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I See AAPL at $200/Share… Here’s What to Do about It Today

We all know that tech giant Apple Inc. (NASDAQ:AAPL) did a seven for one (7:1) stock split on June 9, 2014, that took the price from about $645/share down to $94/share.

But what you may not know is that this move set up AAPL for something really incredible. And I’m going to show you how to trade it, the Power Profit way.

It has to do with the stock split.

Pundits will tell you over and over again a stock split does nothing to the valuation of the amount of equity of AAPL stock in your portfolio. If you had $2,000 worth of stock before the split, you have $2,000 worth of stock after it splits (just more shares). Why all the hoopla?

The hoopla comes from past case studies of many a stock that has split, only to regain its pre-split price within one to three years.

There is where the excitement lies. The very real possibility of doubling your money within 12-36 months.

Or in this case, the possibility of increasing it by 7x…

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