16 Year Old Actress and the Mcubed Day Trader

A friend of mine from Mcubed sent a link to the Yahoo interview by Macke with Rachel Fox - a 16 year old actress and stock day trader. Oh – did I mention Mcubed… that stands for a group I proudly belong to – Mcubed stands for whatever the members want it to stand for. I kind of fancied “Michigan Money Makers”. There are about 8 of us. One or two are less active than others. We used to get together on a regular basis every two weeks on a Saturday morning at Panera Bread. We sat and drank tea or coffee with a PB delight and chatted about what each one was doing on trading. That is how I learned more – like trading the Forex, funds that paid higher dividends, rapid day trading, using Metastock more wisely, different softwares and programs, trading books, about brokerage houses and on and on…

Well Rachel made 30% supposedly, day trading last year on 338 trades. That is certainly an accomplishment for a 16 year old who is also a somewhat well known actress. She has a new trading blog that I must admit is a lot snazzier than mine. I am jealous; but she is in show biz and probably pays someone to sharpen it up and make money from it… Give her some credit though. But I do wonder if she knows the technicals well enough to be safe. She uses overbought and oversold levels to go in the opposite direction. Hope she uses some loss control rules as those things work well till they don’t, and the so called irrational market takes your money away. I wish her the best though and more power to her.

One of our Mcubed members is a dentist who always loved day trading and wants to earn his living being a day trader instead of a dentist. He is single, resilient and has had some tough knocks. For example he has traded small accounts and grown it, only to lose the whole account more than once. Still his passion for trading has brought him back into the game again and again. Recently he took his account from $2,000 to $10,000 in one week. And last week he grew it from $10K to $14K. That is a growth of 40% in a week, and I won’t mention what % the $2K to $10K grwoth was…. He is trading e-mini futures mostly I think, although he also likes to day trade options on stocks like GOOG and AAPL.

The method he uses is a complex array of indicators including market breadth. I think it has become like driving to him. For most people the question would be – how can you keep up with so many indicators? But when we drive, that is exactly what we do and do it without even thinking consciously. His single weakness is money management as he is leveraging his account too far and eventually that causes it to go bad on him. Positively, his number of winners to losers is very high. I think he can compensate for his money management by sheltering some of his winnings in a different account in order to protect it from himself, and keep it for a rainy day.

                                                          (Day Trader's paradise)

Guess I started thinking about the actress Rachel and wrote more about my unnamed Mcubed friend – the dentist. Here is an idea – go in for a dentist visit, but before that give him $1000 of your money to trade. In a week he can make you more than what the dentist visit would cost you – but plan on the money as high risk so you are not disappointed.

I believe his trading is phenomenal and I don’t expect to replicate it. But each one of us has a passion for something and if we stick to it in a controlled way, we can make it! Day trading remains a dream to me. To be independant. Make money using a laptop from anywhere. Be no one’s slave. Work when you want to – my dream is to get up late, grab a lunch. And day trade between 1 and 4 pm. Is it easy? No  It takes a steely mind to handle the losses that come in rapid succession and be able to shrug that off and stick to your trading strategy. Maybe one day….