Allan Harris came up with his current trading system while on a family road trip across the country. His nearly hands-off system looks at insider buying and capitalizes on moves the stock makes when the news of the transactions is released to the public. Originally a lawyer, he decided he'd had enough of the profession and decided to be a full-time trader. He blogs about his trading at: AllAllan.blogspot.com. A fascinating look into one successful trader's tactics.
As most of you know by now, Insider-Buys are only one small part of my trading, but as I explain in the interview, they are a good example of a causal connection that results in a tradable pop in the underlying security. A handful of tradable pops a day keeps the suits and ties in the closet while we make a living in the great casino that is Wall Street. Books? TV Shows? Charitable Trusts? Phony Bravado?
"We don't need no stinkin' badges."
A
18 comments:
Allan,I enjoyed your interview.It was great to finally hear your voice!
Thanks,Ron
Hi A: Nice interview, wasn't expecting a southern accent, thought you grew up in Detroit?
Happy Holidays to you! Did you buy your daughters a pony?
Greg
Yes, Allan went to Mumford, Eddie Murphy's alma mater. He is indeed from "Motown."
Didn't Allan say he was involved in the recording business at some point?
Mark in Sandy, Utah
I am sure you posted how you got started in day trading, can you either reference that post for me or if not can you talk a little about how it all started for you and when you made the call to leave your career for it?
How much day trading capital did you start with?
I submit to you this is NOT a casino.
The public is out there throwing darts at a board, sport. I don't do that. I bet on sure things, using this blog.
BTW, Dave Greg & Ron, good to see you boys again. Now if we could get Curt & Leonidas back.. then we would have a forum.
Mark in Sandy, Utah
Allan
Great interview. Just really enjoyed it, I had a similiar 1% only target "moment of clarity" 2 years ago. Im working on it with some success...
HRGREEN
Aloha from Hawaii Allan...
I, as many others, listened to the Traderinterviews.com podcast. Thank you for doing what you do, and also for being any sort of generous, you definietly do not HAVE TO TELL ANYONE ANYTHING. It is a class act indeed. I am well educated beyond what is necessary, as you are, however I am young and have not found a driving passion for life until trading came along. Keep up the quality content and community, and we will keep up the DD and drive to succeed.
Regards
(Oops! I just posted this in the WRONG place. Too much beer today)
I second the emotion! You are respected and beloved around the world!
But then, so is MONEY!
You deserve all the publicity you get.
Ever think of entering the US Presidential race? Making everybody rich as a platform would surely separate you from a crowded field.
Galen, in Dublin, Ireland
Long Time Allan H. Disciple.
GSS stay down while the price of GOLD skyrockets....What is the word on GSS???? Minyanville still believes in it....
Interesting Interview. And it pointed me to your blog. I've found, by "trial and error" that trading for a 1-5% 1 day run can be very effective. We will see whether this holds longer term without more sophisticated automation. I screen stocks by looking at recommended stocks or breakouts on a chart, set up a "breakout" price, then go for it if it does breakout. With this I've sometimes gained 15% in 1 or even 2 days (in the rare case that I hold the stock). Like you said, if you identify strength, then if it doesn't follow through, get out quickly. And I think, remember that the price will more easily go in the direction of the "market" (up or down), so exit points should reflect that.
Yes, this is becoming a great little group. If I had 100K laying around I would hand it over to Allan to put in the hedge fund. By way of introduction:
Hello, my name is Dave Brown. I am a Major in the USAF and I serve as a hospital administrator. I have been in 15 years (8 enlisted, 7 officer). I have been pretty agressive over the last 5 years investing in primarilty 52 week low fundamental plays and Stock Splits. I have build the 7K up to about 35K at this point and hope to do an additional 25K this year.
Retirement looms in 5 short years and I want to have enough to pay cash for a home.
My two most recent stocks: ANW (bought in May at 16.00 and still holding), and VDSI (bought at 21 and holding for 32).
Leonidas, ANW is a Greece company and had almost tripled for me in the 7 months I have owned it.
Allan is the man, no other way to put it and I hope to learn from each of you on the board as I stretch out this year and try some shorter term investing.
Dave, Florida
Dave:
Welcome to the group!
I wouldn't worry too much about meeting your retirement goals and
figure on giving your USAF pension
(75% of your pay if in 30 years, much less if in 20+) to your favorite charity for the write off.
I've been following Allan's free picks for several years and just paid cash for a $550K "upgrade" to my ranch/estate here in Utah.
Yes, I would say he is "The Man" so to speak.
Mark in Sandy Utah
Mark,
Thanks for the comment. Do any of you use "options" versus buying the stock?
My goals are rather modest compared to the company I am now in; sounds like I have found a group that exceeds my social class but if you don't mind I will try to stay and learn from your successes!
Mark, what did you do before trading for a living? If I can trade for a living after military life, that would be an amazing way to live.
Dave Brown
majordavebrown@gmail.com
Dave:
Happy to give you my story, but it is not the stuff legends are made of.
I was in the chemical business in a modest way, working my way up to the upper middle of the proverbial corporate ladder at Huntsman chemicals here in Utah.
Got tired of seeing the first 55% of my low six -figure paycheck go to taxes,401(k) and then to pay for my company "benefits" package.
So, I started trading on my own on the side. THAT hobby ate up the remaining 45% of the paycheck!
Until I stumbled on this site a couple of years ago. Started small (who believes a guru off the bat anyway)and found that hitting big home runs and parlaying this money really started to pay off.
It is amazing to me that this is so effective for a FREE site. And this guy, whom I've never met, basically has a ranch named after him now so to speak.
I'm glad to see Allan is getting some well deserved publicity.
It is fair to say I'm definitely heavily "long and with options on margin" Allan Harris!
Mark in Sandy Utah
Dave:
Almost forgot, I personally use options on Allan's trades whenever possible, but frequently they are not available on some of the smaller stocks.
For example, I dumped $25K for example into Nutracea a few weeks ago and am up nearly 100%.
There was a time I thought making $25,000 in two weeks on one trade was all the money that existed in the entire world- now it's a day's pay barely showing up on my year end "radar screen" so to speak.
But, yes, trading the Anti-Cramer's picks with options is fine, I just frankly don't see a ton of opportunities around for that.
But there are a few, he does posts about "GOOG" and other very large cap stocks from time to time
and I personally suggest options.
WARNING: This is my personal opinion. Allan & Co may feel otherwise.
Mark in Sandy Utah.
Sir,
Thanks for the info. As you may have determined, I am in the same "previous" boat as you. I make right under the six figures (because I count the tax free housing allowance and the health benefits). I was in Baylor getting a MHA in 2003-2005 and had really good success trading stock splits and 52 week low value stocks.
I am really looking forward to trading with this group, I would love to be able to say what is a reality for you now...I have 4 years until I can retire at 20 years in the military (I'll be 38) and would love to just spend time with the kids and trade. I think of all the community service I can do if we are not tied to a post military career.
Thanks for sharing...
Dave
majordavebrown@gmail.com
Dave:
One big advantage that you have vis-a-vis this forum is there is a LOT more historical data available to you from previous years.
My advice is to go back and step forward through the years and examine the picks that were made and develop your own style that is right for you.
This forum has readers from around the globe and is read by insiders at CNBC etc. so we hear.
When I started reading this forum I only had limited data, you now have late 2004-2007.
That should make things much easier.
Mark
Mark,
Thanks for all you comments and I have been reading the past blog over the last few weeks when I found this site.
It sounds like the last 2-3 years have really been the catalyst for your financial success. I am hoping to say the same in 2-3 years.
I am always open to any tips, just drop me a line....majordavebrown@gmail.com
Thanks,
Dave
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