Blue Chips, Penny Stocks or Options? Taking The Safe Route To Stellar Profits

Mark DeBoer

Part-time Trader

It wasn’t long ago that stock trading was regarded as the exclusive province of the rich and those with access to inside knowledge not available to the average person.

Sure, most people could benefit from the markets through mutual funds and the like. And in all probability, a significant proportion of their 401(k) was invested in that way.

Wealthier individuals might even buy direct stakes in household name brands that pay regular dividends. And if they treated them as “buy and hold” long-term investments, they’d likely do well over time.

Just ask Warren Buffett, who has gradually amassed an estimated $72 billion fortune using this exact strategy.

Nowadays, these kinds of publicly-traded companies are monitored 24/7 by dedicated teams of financial professionals so that every relevant item of news is factored into their share price before the home-based trader becomes aware of it.

Of course, this is not very helpful to the small account guy who needs to get quickly in and out of positions for short-term profits.

And in any case, very few people coming fresh to the market have the financial capacity to take potentially profitable positions in blue-chip stocks such as Amazon, Alphabet Inc (aka Google), Apple, or even Disney.

Without a sizable, well-funded trading account, it’s almost impossible within any sensible rules of risk management.

Member Profile:

Crisis creates opportunity. And for new options trader, Mark DeBoer of Inverness, Illinois, the restrictions on his ordinary activities imposed in response to the COVID-19 pandemic have allowed him some very welcome time to devote to his study of the markets. With the help of Kyle Dennis, Nathan Bear, and the new live scanning tool, Mark's hard work is already paying dividends. And although he has learned the importance of regular base hits in building an account, he has also enjoyed some spectacular home runs, including a 1000% win in just two days.

Location:

Inverness, Illinois

Occupation:

Part-time Trader

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The Downside To Penny Stocks

Many traders assume that much lower-priced penny stocks can be an answer to this problem, but they are, by definition, highly volatile and, therefore, risky.

Unfortunately, some penny stocks are what market insiders, with characteristic tact, like to call “garbage.” That’s not to say that they’re not legitimate and viable businesses. It’s just that the relatively low number of shares available to trade makes them super volatile and vulnerable to manipulation through shady “pump and dump” schemes.

On the other hand, if you learn how to recognize and anticipate the very sharp price movements these kinds of stocks produce, you can indeed make a fortune – as many have.

But to profit consistently requires a precise sense of timing that can only be developed by many hours of dedicated practice. And penny stocks are not, by their very nature, well suited to swing trades left open overnight or longer.

"I’ve used this time of "lockdown" to do a lot of learning. Recently, I've made a lot of base hits and many for extra bases. Of course, I've been thrown out too, but I've learned that this is also part of keeping on a steady growth plan."

Mark DeBoer

Part-time Trader


How The Little Guy (or Gal) Can Match The Market Pros

The good news is, there's a proven way for a person of limited means, working a regular job or on retirement, to participate in the markets risking small sums, with the possibility of significant profits.

And they can do it without having to spend countless hours staring at a trading screen.

Mark DeBoer of Hillside, Illinois certainly thinks so. And the answer he found is options trading.

Now it’s true that options have the reputation of being too risky and complicated for beginners to trade. Aren’t they, after all, a kind of derivative, one of those esoteric financial instruments that crashed the world economy in 2008?

Not really.


The Trading Secret Wall Street Pros Don't Want You To Know

Properly understood, options are, in fact, an excellent way for outsiders to safely trade stable blue-chip stocks of the kind they could never afford, otherwise.

And while it’s true that options can be highly volatile, all that’s at risk is the price of the options contract, giving you control of 100 shares, which can be purchased for a fraction of the cost of the underlying stock.

Plus, it’s their very volatility that makes options enormously profitable.

Mark DeBoer only came recently to this type of trading, but with the help of Kyle Dennis and his other RagingBull mentors, he’s already enjoying some spectacular wins.

More importantly, he has turned the recent COVID-19 restrictions to his advantage by making time for some serious study.

"When the live scanner came out, I was hooked. It provided me with another way to try and keep a pulse on the market. Kyle's instruction on how to read the tool has helped me be a better trader and understand the options market."

Mark DeBoer

Part-time Trader


Trading Options For Base Hits

“I’ve used this time of "lockdown" to do a lot of learning,” explains Mark, “Recently, I’ve taken what I've learned and made a lot of base-hits, many for extra bases. Of course, I've been thrown out too, but I've learned that this is part of keeping on a steady growth plan.”

As with all kinds of trading, there’s a learning curve with options.

And knowing how to manage risk and loss while building an account by swinging for regular base hits is indeed an essential part of the learning process.


Bagging a 1000% Gain in Just 2 Days

The beauty of options is that they can provide small-account traders with some great home runs.

Mark freely admits to being hooked on Dollar Ace’s live market scanner, a valuable tool that finds daily profit opportunities from among thousands of reputable stocks.

Scanners are yet another way in which technology has leveled the playing field between market insiders and part-time traders.

“In back to back days, I bagged a 1,000% gain on 2 ideas from the Dollar Ace scanner,” recalls Mark, “I used to get excited about making 300%, but now I've got a taste of the 1000%+ club!”

"In back to back days, I bagged a 1000% gain on 2 ideas from the Dollar Ace Scanner. I used to get excited about 300%, but now I've got a taste of the 1000%+ club!”

Mark DeBoer

Part-time Trader

More To Give And More To Play With

While Mark’s excitement is understandable, he's not letting himself get carried away.

We asked him what advice he’d give to new traders, and he said that “It’s all about putting in the work. It’s about learning from every tool available. Practicing by paper trading and, above all, knowing when to get out of trades to minimize the losses that are as inevitable with options as with any other kind of trade.”

And with this as his guiding philosophy, most people would agree that Mark is well on his way to achieving and likely exceeding his financial and personal goals.

“I’m looking to make trading a big part of my supplemental income,” is how he sums it up, “and be able to give more away and have more to play with.”

Mark DeBoer

Part-time Trader

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