This week's lesson.
Today I want to talk about how I turned $40,000 into roughly $300,000 in a month because of a bet.
I have a personal friend who took significant losses after investing in blue-chip stocks…
…because he didn’t know the market fundamentals. After about a $200,000 loss, I bet him that I could take $40,000 and increase that account by 50%. With $20,000 as the bet, my friend became incredibly interested in my process because, before this, he wasn’t trusting of penny stocks and was skeptical about the entire sector. After the 30 days, instead of seeing a 50% increase, I had roughly a 400% increase putting my account at $292,000.
The method I used to achieve this gain is abnormal, and I wouldn’t suggest it
…but I made unique choices for the sake of the bet. By placing 10,000 shares with a stock at $5, I shorted at $4.80 and risked $2,000, bringing me to $48,000, which is already over my account size. Since I’m only $6,000 from my maximum loss, I increased my position size to 200,000 shares and tightened my risk management.