Sam, a friend of mine, has made $80,000 a year in the stock market for the last 5 years. His wife let him quite his day job and they moved into a beautiful home off Diamond Lake. He spends about 2 hours each morning trading, then goes out and walks his dog Sassy (Shitzu), fishes, and whatever else he wants to do for the rest of the day. He invited me to his home in Illinois where I sat down with him and asked him a few questions for subscribers of Guerilla Stock Trading. Lance: How many stocks are in your portfolio? Sam: One. Lance: One? Don't you believe in diversification? Sam: Sure, but that's not what works for me. I go long and short in one market and that's how I made my fortune. Lance: Can you tell me what that market is? Sam: Sure. It's crude oil. I've traded oil for the last 5 years. Lance: What did you trade prior to oil? Sam: Bud. Lance: The beer? Sam: Yeah. It had nice cyclical patterns. Lance: So you are a swing trader? Sam: I don't like that term. I think traders run into trouble when they try and classify everything and everyone into neat little categories in order to make sense of things. I would rather be called an oil trader and not a swing trader. Lance: That's incredible that you've made a fortune from trading in just one market. Sam: It's simple. I find that traders run into trouble when they try and get too complex, at least that's what happened to me. Lance: You mean like having too many indicators? Sam: Yeah. That and having too many stocks. Specializing is the key to profits. Whether it be specialization in business or the stock market, a trader should become an expert in just one market or sector. It's a disbelief that any one trader can become an expert on all "stocks". Maybe 30 years ago but today, the market is just too big to be an expert on everything. Which would you rather be, a jack of all trades or an expert in one? Experts make more money in business. A general doctor makes good money, but a brain surgeon makes more. Lance: Good points. I know some traders that have 10 technical indicators they use. They sound really impressive when you hear them speak but as for actually making money I don't know. What is your favorite indicator? Sam: Volume and indicators like the OBV (On Balance Volume). Volume will always be the greatest indicator of future price direction. Lance: If you had to give one bit of advice to traders on Guerilla Stock Trading what would it be? Sam: Wide is the path, but narrow is the way and few there be that find it. Don't think of yourself as a stock trader but rather an oil trader, or a technology trader. Find a niche within the market that you excel at and then become an expert in it and milk it for all it's worth. I hope you enjoyed this article. Leave any comments you might have below. Thank you and happy improved trading. Lance Jepsen
President, GuerillaStockTrading.com
Your Trading Coach
(because everyone, even Tiger Woods, needs a coach)

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