Have you ever seen the movie, The Illusionist?
It stars Ed Norton as a magician/illusionist who performs unbelievable tricks.
I thought of it when I wrote the title of this article.Let me be clear though, this is not a magic trick.
This is actually a mistake that can cost you a tremendous amount of money.
When it’s explained it will seem obvious and you might question how anyone can make such a mistake.
Let me assure you it’s one of the most common mistakes in trading.
For the person that trades between ten and two hundred times a year this can be the difference between making trading a hobby or making it another source of income.
So how does it work?
How does thirty cents turn into three thousand dollars?
I’ll give you a real life example. Before a student of mine became my student, he saw how it could happen first hand.
Here’s what’s unbelievable, it was on a hundred shares of stock.
He really liked a particular stock when it was around fifty and thought it would go to seventy or eighty.
One day the stock traded a little below fifty and he put in a bid at $49.50. Well the stock did hit $49.80 but that was as low as it would ever go.
It stopped at that level and started going up and a month later he couldn’t resist any more and bought it at $70.
By the time he got in touch with me for the first time the stock was back at $60!
Missed the ride up for twenty points (2,000 on a hundred shares) and then got caught in a ten point down move (1,000 on a hundred shares).
So there it is, the thirty cents that he wanted to save by buying it at 49.50 instead of 49.80 cost him three thousand dollars.
If you’re looking for twenty or thirty points then why should thirty cents make a difference?
Even more to the point, if you have a bid in that’s not getting hit then that is a sign that you are right about the stock!
It is strong and that’s why your bid is not getting hit.
When I am bidding for a stock and the bids are not getting touched that makes me want the stock even more.
I have no problem paying up for it.
See how this can apply to your own trading and maybe you can create your own market magic!
All the best,
P.S. I’m looking to coach 10 hungry individuals who want to become financially free trading the markets. If you qualify to work with me, I’ll take you step by step and show you the exact steps I took to become a stock market millionaire. Apply here to be one of them now.
Adam Mesh is CEO and Founder of The Adam Mesh Trading Group. For the past 18 years he has coached thousands of students to all levels of success in trading. He is also creator of the revolutionary Full Contact Trading System