Wednesday, August 19, 2009


There are a few things that I need to get straight with our community, I ask for your patience in listing them.

First off, and I have cordially and mutually agreed to part ways after 50 weeks. It looks like my style (of writing/ trading/ speaking?, etc.) is not really such a good fit for that site. Greenfaucet and iBankCoin are like night and day, but both are exceptional sites. Greenfaucet caters to the conventional, while iBC is the epitome of everything unconventional. Most important, I continue to remain friends with Chip and Jim, for whom both I have the utmost respect.

However, something had to give. I was in a constant struggle to find equilibrium between both sites, but I could not do so. I had to give one up. As you know, I am an equity owner in iBC, and therefore I feel this is my home. I think you’ll find now that I will have more time for you guys here on iBC. Perhaps also it’s good to focus on building a brand on just one site. In any event, I feel we’ve grown a large cohesive community here at iBC, and I refuse to abandon it.

This also means that I will not be flying out to San Francisco for the Money Show as a GF representative, for obvious reasons. I’d advise that if you made plans to see me, cancel them, but don’t miss the show on my account. This wasn’t wholly my call, obviously, but I do personally apologize for an inconvenience this has caused anyone. If you are a prospective student and you are available that weekend, shoot me an e-mail ASAP. I will train you this weekend instead since it just freed up.

In future, I will also announce where I will be teaching on the weekends I train a student, giving you another avenue to meet with me, over a few glasses of Grey Goose of course.


Now let’s talk about this Michael Stokes -- the guy who attacked me today. I wouldn’t be going on the defense if he didn’t start this nonsense in the first place. Yes, he started it (giggling noises in a playground). For background - he had recently left Greenfaucet himself, under a dark cloud, which may have led to the bad feelings that have prompted these latest attacks. Now he has decided to go after me. Another sign of questionable judgment.

It’s a sad testament to the anonymity of the internet that "this guy" feels he can attack me so viciously while knowing absolutely nothing about me, and what’s more, having never directly contacted me (or even made the attempt) via phone, email or in person . I don't even know who this coward is. All I know is that his primary “source” is a bitter troll that Fly banned from iBC some 2 years ago. Needless to say, that troll knows absolutely nothing about me as well. So one has to ask ... how does one find the cajones to make such libelous claims about someone that know so little about? Is it the false bravado of the Internet that armors this jerk? Does he feel he’s somehow safe doing this?

Maybe he’s not worried about a simple comparison or two, perhaps explaining the differences in our relative popularity? How should I begin…?

Who’s throwing out profitable ideas on their blog?

If you read Stokes’s blog, you’ll quickly note that his posts are not actionable at all. On the contrary, if you come to my blog every single day, you should be able to bank coin (like today). If you follow me on twitter, you'll likely bank coin on something everyday. You can literally walk onto my blog at most times of the trading day and pick up actionable ideas immediately. That’s how it works over here and I’m grateful for the community we’ve engendered.

Anyone who follows the blog on a consistent basis knows my calls are real-time and actionable On the other hand, "this guy" – who is apparently some sort of odd lot mutual fund system trader (I guess there’s a girl out there for everyone, no?) -- does not make daily calls nor does he put his ass on the line on a daily basis like I do. I trade what I preach, and I do so every day while at the same time sharing my ideas with everyone, when in fact, I don't have to share anything at all. Another point - you can't get over 2,600 followers on twitter if you suck at trading. Let’s be honest, people don’t follow me for the witty commentary; they are out there trying to gain an edge and maybe learn something in the process. Less able traders, and less (far less?) popular bloggers should not get green with rage over my resultant popularity, but rather learn from my approach. (many who have shared our ideas will attest to this fact).

Auditing, Managing, etc.

I have stated in the past that I am a very private person (remember my 1-yr anniversary post)? I also ensure full 100% protection and anonymity with regard to my fund and my clients. I cannot disclose certain info, especially on the internet, since certain of these people have a habit of posting material on the internet (like private e-mails without the consent of the parties mentioned). I'm 100% sure that if I provide them with confidential documentation, it will be posted on the web, and that means for posterity. My attorney has informed me that the liability would be all mine for such “inadvertent” disclosures. No thanks, jerk bags.

Unfortunately, that still leaves this empty suit clamoring for independently-audited results for my trades. In the spirit of fisking this cluebot, I will offer this admission (for the first time): I have owned as many as four accounts with Covestor, which is a site that auto-verifies and tracks traders’ results. As Woodshedder (who uses it) will attest, it is an independent entity and I have no ownership, interest, stake, affiliation of any kind on the site. I just use the accounts for my own scorecard. One account (the oldest) was ditched because the "cash & equities" feature was not implemented until March 2009, which throws off a true “apples to apples*” comparison, imho. Presently, I have two day trading accounts and one swing trading account which were all created after that period.

*(I believe Covestor started including the "cash" portion of people's accounts back in March. Prior to this, everyone's accounts on Covestor were inaccurate, due to the fact that the portfolio's cash position was never properly accounted. I’m sure Woodshedder can explain this in detail.)

Here is my Covestor profile from November 12 (when I first signed up) till March (when only new profiles accounted for cash): This is the obsolete account and the return should be greater, but since my daily cash positions were never accounted for, the data is not very useful.

When Covestor finally implemented "cash and equities" into new profiles, I got the three new accounts. Here is one of them: Under “Performance” click on "Cash & Equities" in the drop down menu.

You should see this: Note that +208%? It's real and all verified by an independent third-party.

Here's the best part: I have 2 more Covestor accounts both with returns over 150%, each (designated DT-2 *58431 and Swing Trading *58355). I rotate the use of my accounts to keep them all balanced with each other. I'm using my DT-2 account right now. At this point, I am saving up ammunition, just in case someone else wants to make false accusations against me. It’s best to not reveal all your cards at once. Again, I’d prefer to keep as much of my personal, non-blog oriented business as private as possible.

A great thing is that accounts are verified by Covestor, which pulls info directly from your brokerage account. IOW -- You can't fudge the numbers.

Shall we have a look at Mr. Stokes’s own "independently audited-blah blah blah?" Here’s one: This is for the "YK" strategy (I wonder how he did prior to the Great Crash???).

Moreover, it appears this person’s “Timertrac” is the worst possible "independent-auditing" service available. Why? Have a look at how the "auditing" process is done (copied and pasted from their site):


How To Deliver Your Signals To Us for Tracking:

* All you have to do is supply us with the on-going signals or trades as they occur (these are kept confidential until after the delay period you select). You may deliver these to us in a number of ways:
* Rydex or ProFunds Automatic
* If you have any groups at Rydex or ProFunds we can track these automatically -- you do nothing, it's automatic!
* E-mail
* Upon receiving your e-mail, we enter the trade information into our database, tracking both the date and time we received the signal or model change.
* Direct Web-site Entry
* You may login to our site and enter the trade directly into our database. The signal will be automatically time-stamped. If you manage client accounts you can enter these trades after the market closes under certain conditions.
* Telephone
* You may call in your timing changes at any time to our signal recorder. Calls will be date and time stamped.
* Postal Mail
* Postal mail works especially well for timers and asset allocators with long-term horizons or newsletter writers. (We do not evaluate newsletters.)
* Actual Trading
* To use this option you must send us on-going duplicate account statements. Call for details. This is a very easy way for advisors who directly manage money.
* Past signals
* Although we do not allow any "hypothetical" or "back-tested" signals or models; we do allow actual historical information when accompanied by a CPA attestation letter from an AICPA member.


Yikes! Look at all the ways one can abuse this system. Phone in the trades you made? Send postal mail? ROFL! You can manually enter "trades" in the website yourself, too?! But hold on -- you can even e-mail them what you traded. How cool is that?

FACT - It isn't much of an audit when “the audited” can manipulate the data inputs.

FACT - Using Covestor, or other service, which automatically links to your accounts and auto-verifies everything is a far more valid third-party independent auditing process. There is no ability manipulation, faking trades, or any “self fudging.”



Covestor would be a nice start. Apples to apples and all.


Here’s and idea: "That guy" and I should have contest: we both make live, actionable and real-time calls for a week and document them and let's see who comes out on top. Oh, that’s right, I forgot, he doesn’t make live, actionable and real-time calls. Mike, you still want to have a contest? Pick your poison.

Stokes’s statement: "I won’t even waste your pixels with all the reasons that making that guy your lead man epitomizes everything that’s wrong with this industry". What “industry” do you even claim to be in, cellar dweller? Certainly no one is giving you any money to trade, and the reasons are relatively evident – your “disappeared” histories aside, lol.

Keep this in mind, while penning your next envy tantrum -- My returns seem "impossible" only to those that cannot achieve them. Your calls of “bullshit” sound a lot like whining to me. Of course, you can always take me up on my offer. No need to beg off with that dental appointment excuse, I know your answer already.

That all said, I learned from the Fly (who is generous beyond all measure of his cantankerousness) that it pays to be generous. Therefore, if you want some help, I’m here for you. Follow me on twitter or read the comments here and be sure to find my REAL-TIME, ACTIONABLE, TIMELY TRADES - EVERY SINGLE DAY. Who knows, you might even get out of that basement apartment one day after all.


To my CA crew – I appreciate you holding out through that rant, and I also appreciate your being here every day and a part of this community. Tonight, I ask only this:

If you personally benefited from my calls, please state so in the comments section. Show this envious freak what sort of “positive” (or not?) contribution to the stock blogging world I’ve made (you may have seen, he compared my "popularity" with Cramer...unbelievable!). Thanks in advance.

And finally, with regard to what matters the most to me, I was up +14.7% today. If Spit Cup wants to call “bullshit” on that one as well, I’m perfectly ready to embarrass him again. I know, celler dwellers aspire to 14% as an annual target. All I can say is “the world needs ditch diggers too.”

I have more things planned for you guys already, so stay tuned.




Katsu said...

it gives me great confident when i find myself trading same stocks as yours. it's easier if i just follow your calls, but i try to come up with my own and compare to yours see if how im doing. past two to tree month im trading more and more same stock as yours althogh my entry and especially exit are still a little off from yours. for me going through your calls after a trading day is one of the best way to learn entry and exsit. thank you JL!

papiunc said...

Although I do not trade individual stocks, I check your site every morning to see your analysis. Great work!

Bob said...

Why waste your time and energy on a troll? Don't let this bastard get under your skin, ignore this piece of shit, and focus on what you do best. You are young, so it is early in your career. You will have many odd balls and psychos envious of your talent, and with out a life of their own. Do not establish a pattern of confrontation with these social outcasts, it is such a waste of time and feeds their sick minds.
As a sick dog oftens comes back to lick up it's puke, so do these psychotic attention starved, clinically insane trolls, They read the filth they have spewed and enjoying again, in their sick perverted minds.
Do not let this sickness or negativity enter your mind for even a second.
Jealousy is a negative emotion that plagues weak minds.

j0sh1ngU said...

Even though we may not see eye to eye all the time...... Your profits, I cannot verify percent for percent, but I can reasonable say that they are in that ball park of ridiculously high and around that 2xx% that you claim. It all sounds reasonable to me.

One thing you know and probably already know, is that know blogger should, will disclose all his trades as they have many different reasons and send false messages..... but from what you post it seems reasonable that what you state is what you gained. And if not who cares what that guy thinks.

By the way.... as you can see I will not be posting on IBC for the next two-three weeks(at least trading hours) irrespective of market actions

Andre said...

I cannot daytrade, but follow many of your great charts for swing trades. You have been more than gracious, please keep it up, dont let the jealous noise get to you.

Scalpwiz said...

I don't trade stocks, but trading is trading for the most part, and I have taken Ideas from what I've seen you do and applied them to the NQ (futures) and the ES (futures) and so far I am doing excellent. It always makes me feel sorry for the people who make accusations and start these internet fights, they must lead such sad defeated lives.., but like you said the world needs ditch diggers =) so forget about this moron. I really don't understand this "Michael stokes", all your calls are live and you are right like 90% of the time, your blog has probably helped thousands of people, and you do it all for free..