I know what you’re thinking, or at least I’m going to take a stab at it. The first thought in your head was, “This is some kind of get- rich-quick, penny stock, investing, work at home, pyramid scheme, expensive scam of some kind.” The truth is I can’t blame you for having these initial feelings. Let me reassure you, however, that the information here is not a scam and I am a very real person.

My name is Jerremy Newsome. My personal cell phone number is (352) 246-4596. I am the creator of RealLifeTrading.com and if you really want to know if I am a real person and not some scummy, greedy, Wall Street investor, call me! Text me! I’ll probably get to your text message faster than a voice mail, but I WILL get back to you. I bet I have your attention now, don’t I? I look forward to meeting you one day!

I meant what I said above – You CAN retire in a few years with $3,000. Retirement is such a beautiful, yet elusive, term. What does retirement mean to you? Does warm sand, a cold drink, the smell of salt water, exceptional time with family and friends come to mind? That was always my vision of retirement. Maybe for you what comes to mind is the bliss of never having to work again. No more computer screen, lame and boring gray

cubicle, annoying co-workers, long commute. How about the prospect of sleeping in until 11 a.m. on a random Tuesday just because you want to?

Here’s a question I have for you: how old do you want to be when you retire? Now, how old do you think you’ll be when you actually do retire? I was talking to a guy I met about four months ago over a beer at a burrito place. His name was Seth; super nice guy, well dressed, smart as a whip, and just an overall cool dude. The subject of careers came up. He told me about his career as a financial planner. His perspective and view of the world began to shine through his eloquent words. “My clients want to retire comfortably.” he said. I asked him “When are you going to retire, and are you going to be comfortable?” He said, “I’m going to work hard for the next 20 years building my book of business, growing relationships with my customers, investing mildly to aggressively, focusing on loving my family, and when I’m 55 or 60, yeah, I’ll be able to retire with a nice nest egg.” Is there anything wrong with his view point or perspective? Not at all! I think it’s beautiful, optimistic, and he’s got drive! I admire that, plus I really loved his shoes / belt combo. He was rocking it! As we talked though, you have to understand something. I was 25 years old and already retired. At the time I was

approaching my 26th birthday (May 2nd, by the way). My perspective of work and retirement has always been different than most. I say why 60? Why not 40? Or 30? Or even 24? I want you to achieve your goals. If you want to retire young, or simply retire earlier than you ever thought possible, then this is for you!

Hopefully, you’re now asking yourself “How can I retire young off of $3,000? It’s actually quite simple, and it all comes down to your plan. There are multiple ways to achieve retirement early and many paths to follow. I’m going to show you the path that I’ve taken, as well as many others. For now let me assure you, it’s easier than you might imagine. Here is what you are going to learn.

Getting Started

What Strategy to Use

How it Works

Benefits and Risks

Let me start out by defining what day trading is. Day trading is the act of buying and selling equities of a company, in large quantities, in the span of a few minutes to hours, in hopes of making a profit. What image comes to mind when I say ‘professional day trader’? If you are like most people I’ve asked this question to, your mind is a blank slate, or you picture a guy surrounded by computer monitors and TV screens with CNBC’s Mad Money blaring through the Toshiba speakers, cigarette smoke cascading across the room as it caresses the stacks of newspapers and coffee mugs strewn across the old, wooden desk. Well, that honestly is an over glorified stereotype. If you are feeling a little upset right now and are saying to yourself “There’s no way I can day trade. I don’t have the time or money”, or you’re saying “I don’t know anything about day trading,” keep reading. I’ll address all of those concerns. Remember, this profession and method of trading can, in my opinion, be mastered by anyone in a very short period of time.

Day trading has become more and more popular as technology has advanced. It has been made possible by more advanced computers and faster internet. (Ahh, fast internet. How I love thee!) I first started trading the United States Stock Market in 2008. I was 20 years old. I

invested $1,600 in penny stocks and lost it all within months. I had no clue what I was doing. Since then I have progressed through an extensive education, first learning myself and then proceeding to educate those around me about what the stock market is and how it can EnRich lives. I see the stock market as a tool, a way to increase cash flow so you can do the things you want. Most people who do not trade the stock market avoid it for two reasons: (1) they simply don’t know how, and (2) it’s risky. Later on in this article, let me teach you not only how to do it but how to do it outstandingly well!

Getting Started

The first issue is the $3,000. Do you have it? If you do, great! Feel free to skip to the next paragraph because for you, this part is out of the way. If you don’t, my suggestion is to begin saving. Here are three of the most basic, simple tips to save up your $3,000 that may surprise you:

Stop drinking soda. Not only is soda bad for you, it costs money. The average American household spends $1,345 a year on soda alone. That includes grocery stores, super markets, convenient stores, and purchases at the restaurant. Water! Water is good! Not only is it free of sugar and chemicals, but it’s FREE!

Pay with cash as often as you can and don’t spend any loose change or $1 bills. If you break a $5 for example and you are given a $1 bill and $0.74 cents back, put it aside and don’t spend it. I did this when I was 18 and by the end of the year I had over $700. No joke. Easy!

Ask your boss for overtime. I know; this is kind of an obvious, ‘no duh’ type of statement. But if overtime is available, take it. Some positions do not offer it and I understand this. If it’s there, ask for it! Not only is it a positive step for you and your work morale, but you’ll get some extra coin on pay day. Set it aside towards your $3,000.

If you would like some other tips and tricks on how to make more money, click this link.

What strategy to use

You have the $3,000 now – perfect! Let’s focus next on a day trading strategy. You see, in order to get to retirement early, it is going to require a tad bit of time. Not tons, but the strategy I’m going to teach you in this article focuses on the first few minutes of the trading day; from 9:30 to 9:50 a.m. EST. That’s 20 minutes, folks! I know you can find a way to spare 20 minutes! This particular strategy honestly does work best for those who

(A) work from home (B) work non-standard hours rather than the typical 9 to 5 (C) Stay at home dads and moms. Let’s be honest, they work harder than anyone so they, for sure, can do this!

I call this trading strategy the ‘Gap and Go’ and here’s how it works.

The United States Stock Market is open from 9:30 a.m. to 4:00 p.m. EST. Outside of this timeframe the price of a stock can change due to overnight orders or global conditions like trading on international markets. This causes a GAP. I’ll teach you much more about gaps in this video, but you’ll get the basics in this article.

A gap is simply when the closing price of a stock and the following day’s opening price do not match. For example, a stock closes one day at $98.00. Next day it opens at $100.00 and that’s a $2.00 gap up in price.

Many beginner traders think in order to profit you have to already be in the trade from the night before, and being in the trade prior to the gap requires inside knowledge, or tons of studying financials. Nope! Here’s what I use. It’s a webpage showing what’s gapping in the market. http://thestockmarketwatch.com/ markets/pre-market/today.aspx

See, most companies would charge for the above information; just that simple little link. Nah, not here. This is Real Life. I know what you need, and there it is! Let me outline three items you are looking for on that website to find the best trade.

1. A stock that has more than 1,000,000 shares average volume

2. A stock with a share price between $5 – $90

3. People who are losing money because of The Gap and Go

How it works

Let me explain number three. This is going to take some charting.

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Above is a chart on a company called SanDisk – ticker symbol SNDK. Let’s pretend you were an investor or trader and you just bought shares of SNDK while it was trading somewhere in the black box. The next day the stock gaps down. You are now what is referred to as ‘trapped’. You are a trader who lost money overnight; a lot of money, for a reason you don’t understand, and you don’t know what to do. You panic and sell your shares.

With a large number of other trapped traders in the same predicament taking the exact same action, this causes a massive drop in share price. Now at this point, if you are not sure what candlesticks are, or you do not know what shorting a stock means or how to do it, I have links for those also

Here’s my free candlestick E-Book.

Here is a totally free video explaining how to make money when a stock is going down.

Wow. A lot of information, I know. Hang with me, we’re about 50% finished! You are doing great!

What I am going to do now is zoom in and show you how this strategy works. White candles mean up days and black candles mean down days. You can see below in the now purple box (I like colors) that there were more white candles than black. That often means there are more buyers than sellers, and those buyers are anticipating more bullish price movement. The bottom line of the purple box represents a support level where there is more buying pressure than selling pressure. Notice how the stock gapped down and opened below the support level? That traps traders who are holding bullish positions in the stock and they are surprised! They panic and sell. Well if they’re selling so will we, except we will sell to open and make money as the stock price moves down. Let’s zoom in one more time to the intraday data and candles on the 17th of July 2014 on

SNDK.

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For this strategy (see chart below) you are going to use 2 minute candles for the first 10 to15 minutes of the trading day. As a professional trader you are looking for gaps that have significant shock value, meaning people are scared, trapped, and losing money. With this strategy you will be trading in the direction of the gap. Your entry will be a few cents below the low of the 2 minute candle. Your stop will be a few cents above the high of the 2 minute candle. Based on this you would sell to open shares at 98.80 and your stop, the location where you would buy to close, is 100.08.

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Notice, I said your ‘stop’. That’s because the risk management part is the most crucial aspect of trading! All traders take risk, but it’s calculated, predetermined risk. The great news is incredible traders have made a

distinction between risk and money. What I mean by that, is this. The majority of people who lose a trade focus on how much money they just lost in a specific dollar amount. That usually causes fear and panic. Losing money scares people because of the associations and ties they have to that money. I’m not going to get into the deep stuff regarding fear and losing money in this article. It’s an interesting subject and I’ll show you where to find it later if you’re truly interested. As a professional trader, you are not going to lose money. From now on you are going to be losing ‘R’s. The R stands for your risk unit. From this point forward you will be focusing on managing your risk units, not your money. It’s a different and interesting perspective right? I’ve got an article on that too!

You see, most traders are afraid of losing in the stock market because they have no idea how much they are going to lose. All traders, and more generally all humans, need certainty in their lives. It’s one of our basic human needs. The stock market provides very little certainty, and that’s why so many are frightened by it. However, if you are certain how much money you are going to lose on any given trade, you will be much more comfortable with the loss. Here is how you calculate your risk per trade.

Remember your risk per trade is simply your R unit, your R. R: risk per trade / stop value = # of shares to trade

How does a trader determine their risk per trade? Simple: it’s 2% of your trading account value. You will be starting off with $3,000 right? 2% of $3,000 is $60, and for our purpose let’s round it down to $50. So, with your $3,000 account, your risk will be $50 per trade. Your R is $50. Let’s review the above trade now to show how you would calculate your R.

Your stop value is simply $100.08 – $98.80 = $1.28. Your risk per trade is $50.00 correct?

The amount of shares you trade in this scenario is $50 / $1.28 = 39.06, rounding down to 39 shares traded. On this trade then, your risk was only $50.00 out of your $3,000 account. You can see on the chart the stock traded from $98.80 to below $95 in just a matter of minutes. Here’s the math. Your risk was $1.28.

If you exited at $95 you made $3.80. That’s almost exactly three times your risk. Great trade, for just ten minutes of work! You risked $50 to make $150, or as you have now learned, you risked your 1R to make 3R. Let’s begin to use that lingo.

Ladies and gentleman, all you need is one good trade a day! I’ll help you create a trading plan for your day trading so you can stay disciplined and focused because that’s truly the hardest part. In the future I’ll also teach you some trailing strategies that would have turned this 3R trade into a 5, 6, or even a 7R trade just like one my good friend Caryn S did successfully. Moving on, how can you retire on this strategy?

Benefits and risks

Your realistic goal is to lose as few R’s as possible in any given month. If you follow the strategy and mitigate your risk, the profit will naturally follow. Below is an example of my March 2014 trades, and is a reasonable expectation of results you can anticipate from day trading.

� In March I realized an 11.63 R gain. An expression you may hear me say a lot is “An R is an R is an R”. It doesn’t matter how big your R is. You’re becoming

disciplined and focused, trading your plan, and acquiring skills. You will notice on my chart there are days I made 0 R, which means either I didn’t find a good trade to take, or I broke even for the day. Now look to the future. Mentally increase your R unit and expand your mind. When you are trading a $1,000 R, an 11.63 R gain for the month equals over twelve grand in one month, trading for just 30 minutes a day. Amazing, right!

You’ll get there, don’t worry. But for now, with your $50 R and your $3,000 account this is still a significant gain. A $581.50 profit for the month! You aren’t going to retire on that, at least not yet, but it IS a solid step. Let’s discuss what you’re going to do with this money to get closer to retirement, faster. I am going to outline for you a path you can begin to take with your newfound R generating system.

Plan

According to http://www.nerdwallet.com/blog/credit-card-data/average-credit-card-debt-household/, the average American is $15,191 in debt. The chances are good you might be facing a situation similar to this. You know what? This is ok! We’ll get you through it. One of the bigger steps toward retirement is getting out of debt. What we are going to do is set up a system where

we begin to pay off your credit card debt with the additional income you are generating through trading. To make the math simple I am going to assume you have a monthly trading profit of 10R. Your R in this scenario will be $50, as this is very realistic. You may bring in less than 10 R sometimes, but during earnings season, which is every 3 months, you’ll likely be looking at 15 to 30R months. Looking at your credit cards, focus on the one with the smallest balance. Get that one out the way first by paying much more than the minimum payment due. After that we will begin to systematically tackle the other ones! (And by tackle, I mean Michael Strayhan those suckers! Sorry, couldn’t resist at least one football reference.)

At this point let’s assume you’re bringing in $500 a month. You’re going to use $285 of that just for credit cards and leave the rest in the account and let it grow.

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Ten months have gone by. You’ve almost paid one entire card off. You had a Thanksgiving bonus come in, so you’re going to go ahead and pay the minimum due on the two larger balance cards and finish off the entire balance of your Citi Bank card. By this time your trading account has grown by approximately 4R per month for ten months, and your account balance now totals $5,000. You’ve been disciplined, cool, consistent, calm, and collected. Time to increase your R to $100! Exciting right? Since you’ll be making about 10 R a month based on your consistent trading history, or one thousand dollars, you are now going to increase the total credit card payment amounts to $500 per month.

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Huh! I’m no math expert, but that looks like three zeros to me. What is your credit card debt after only 20 months on this plan? You got it. Zip, zero, zilch!

After 20 months with a simple, realistic goal of 10R per month, your account has grown from $5,000 to $10,000. You are now ready for a $200 R, and things get much more fun from this point, because with a 10R per month goal, that’s $2,000 that you’re bringing in each month in addition to what you make at work, plus you don’t have any credit card debt. What’s next? In my opinion here’s a great plan to get closer and closer to retirement and achieving your financial freedom:

Of your $2,000 a month, dedicate: a) $100 extra toward your car payment (if you have one) b) $100 extra toward your student loans (if you have any) c) $100 extra toward your mortgage (if you have one) d) $100 a month into a savings account that you simply do not touche) $500 a month into a separate savings account for taxesf) $400 a month into a savings account for a down payment on a house

Yep, I said house! You can now see the big picture of the plan starting to come together. If you rent, this will be your first house. If you already own a house, great! This will be a house that you occupy, and then rent out the one you’re currently living in, or it will be a real estate investment, pure and simple. I will go into more information about real estate in another article, but currently (being June 30, 2014 as I sit in seat 31D on an American Airlines flight traveling to Hawaii for my very first time) the real estate market cycle is prime for moderately priced rentals. I went to college at the University of Florida and graduated in 2009. I moved to TN to pursue my trading education full time in June 2012. I currently have property in High Springs, FL, about 30 minutes outside of Gainesville, FL, and a rental unit in Gainesville off of Tower Rd.

From personal experiences I believe the best rental unit investments to make are townhouses and condos in the $50k to $90k range, two to three bedrooms, two to three bathrooms, in big college towns. There is more demand and more frequent turnover of potential tenants in larger college towns. Aim for a Division 1 school in the Southeast area of America. The South (Florida, Georgia, Alabama, South Carolina) was hit pretty hard by the housing crisis in 2008. You can truly find copious

amounts of real estate in the suggested price range in decent, safe locations. 10% on a $90k townhouse is only $9,000. It would only take two years of saving, at a rate of $400 a month, to set this amount aside. In my plan above, if you don’t have student loans you can put $500 per month aside for this real estate investment. At this rate you would have the $9,000 down payment for the $90,000 condo in only a year and a half! Truthfully, 10% down payment is a little on the high side. With rates as low as they are and you with zero debt, you’ll easily be able to qualify for a 3 to 6% down payment loan to secure financing. 6% of $50,000 is only $3,000! You could save that in 6 months!! After you get everything bundled together in an escrow account, your total monthly payment on a $63,000 loan with a 4.72% interest rate, plus insurance, taxes, private mortgage insurance and HOA fee of $150 is only $555.00 a month! How do I know that? Well, that’s what mine is. Just leading by example here, ladies and gents.

In the majority of college towns, especially the nicer Division 1 schools, a 2/2 bed/bath can rent for $800 easily. I recommend that you hire a reputable real estate agent in the area you’re buying to handle everything for you. My agent in Florida handles rent collecting, repairs needed, and money transfers. I pay him 10% of the

monthly $800, and the remaining $720 income covers monthly payments and other expenses. There is $165 left over, my positive cash flow, and I suggest depositing this into one of your savings accounts to cover unexpected expenditures.

Are you starting to feel it? Your hands are getting warm, right? Your pulse is quickening and perhaps for the first time in a long time you’re feeling excited about your upcoming retirement?!? Well, this has been a blast for me! I know this is a wealth of information. Some of you may understand and some of you may have remaining questions. In my world, if you are confused that means you are about to learn something!

Email any questions you have to me at jerremy@reallifetrading.com

To simply understand the basics of the stock market, visit us here.

To get additional information on day trading, visit this exciting page!

To get additional information on proprietary trading, visit us here.

Family and friends from around the world, I truly look forward to meeting you one day! Thanks for reading. I hope this was enriching for you! I’m excited about our future together and welcome you to Real Life Trading!