Who Is Eddie Z?
Now, that you know more about Eddie Z’s past, you may wonder who is Eddie Z today? Since stumbling upon the trading computer market, I’ve developed several web sites including EZTradingComputers.com and EZBreakouts.com. These sites are my way of communicating with other traders who are looking for answers and solutions for trading.
Day trading is an up and down market, literally and emotionally. It takes discipline and a great methodological system to make money in this field. Understanding how the industry works and in what ways your mind plays a role are necessary. In learning these key factors, I developed an eBook called “The EZBreakout Method” to help you understand their importance. Then to further help, I offer members of my web site, EZBreakouts.com, daily “plays” that they can use to capitalize on the stock market.
I realized how much I loved the exciting world of day trading at the young age of 7. I used to go to work with my father, who was a commodity futures trader. Seeing all of the people on the floor at New York Mercantile Exchange, screaming and carrying on, was intriguing. Every which way, I could hear people shouting out numbers, while others frantically wrote down figures on papers and chalkboards. The energy in the room was overwhelming, but in a good way.
When I got a little bit older, my father started to teach me how to draw point and figure charts. Of course, back then this was done with a pencil and graph paper. I learned how chart formations were created and how they were used to predict the future. It seemed so cool. None of my friends’ fathers had jobs like my dad. I was hooked.
After working in the industry for a while, it came to my realization that my father was one of the purest forms of “day traders” and “swing traders” of his time. These terms were brought about during the online electronic trading era. Just imagine drawing charts by hand, while standing in a pit like my dad did. It doesn’t get any more old school than that!
In 1987, I got my first job working on the floor of NYMEX. I remember it like it was yesterday – it was the Monday right after my high school graduation. Keeping the charts updated was one of my key duties, but a few short years later I was replaced with computerized charting services. The handwritten charting days were gone for good. However, I continued working at NYMEX all the way through graduate school. I was on the floor every summer, winter and spring break.
One memory I’ll never forget took place on January 15, 1991. I was working with a guy in the crude oil pits. Tariq Aziz, one of Saddam Hussein’s right-hand men, had just walked out of a meeting with U.S. diplomats at the UN. This was when Iraq’s deadline for withdrawing from Kuwait had expired. In just two minutes, I watched a barrel of oil shoot up from $27 to $40 per barrel. This was unheard of at this time! Everyone in the trading pit went bananas. Especially the guy I was working with, who had made a whopping $100K that day. Of course, this was short lived – the prices dropped back into the $20s the following day.
Fast forward to the early 1990’s, a friend of mine explained to me that before I go to the NYMEX for good, I need to check out stocks, but from a stockbroker’s perspective. In the early 90s, picking stocks was pretty simple. It wasn’t required for you to learn much about charts or even the fundamentals of trading. As long as you were able to hold on to a stock long enough, you could make profits. This was especially so with technology-related stocks.
When I got into the industry, the dot com boom was just peeking its head over the horizon. This was a great time to be a broker/trader. New investors were easy to find and everyone was pretty much used to the bull market that originated in 1982. At this time, you would see stocks double or even triple quickly. I got into the game at the perfect time.
Unfortunately, less than a decade later, the bubble burst. It happened March 2000, while I was in Hawaii on my honeymoon. Luckily, before I left, I had all of my clients get out of the market, so that I wouldn’t have to worry about them while I was away. Six months before, the stocks were exploding like never before. I bought stocks for clients at 10 a.m. and by 3 p.m., I was selling them off 10% to 25% higher. During those six months before the bust, I was making higher commissions than I had made in one year just 5 years ago. Everyone wanted me trading their stocks for them. My phone wouldn’t stop ringing! People were getting cash advances on their credit cards just to be able to buy stocks. It felt like a dream and I was soon to wake up to a harsher reality.
After the market crashed, I tried getting my clients back into trading, thinking everything would be as they were. I was wrong! For the next year, I was battling with a raging beast. The stock market was taking no prisoners. I lost clients’ money and there were even instances when they were down by 80%. This was really bad and I knew it. I had to do something. I went to my local library and started studying every stock market book I could find. Yes, I had an MBA, but I didn’t have any knowledge of market cycles.
I read everything, including historical market cycles, Peter Lynch and the like. The only book that really spoke to me was “How to Make Money in Stocks” written by William O’Neil. When it came to explaining the gyrations of the stock market, he nailed it. He used actual facts, research and more importantly, he used charts. A light bulb lit in my brain, I knew what I had to do. It’s what helped me to get all of my clientele out of the market in 2001 and save my business. My childhood flame for charts had been reignited.
Sadly, my colleagues were dropping like flies all around me. Within two years, 90% of the traders I worked with were washed out.
Why had I made the cut? Because I had a financial bible, “How to Make Money in Stocks”. All I had to do was read this book and be patient. O’Neil had laid out the perfect trading system – it was the stock market’s version of the Phil Jackson’s Triangle Offense.
In 2003, a new bull market emerged. By this time, I felt more confident and began to inch my way back into stocks. This time, I’d use O’Neil’s system. A few months had passed and I was making my clients money…it was really working.
I decided that it was time to do a bit of trading for myself, so I applied what I had learned for my own personal accounts. There was great success, which lead me to thinking about dropping out of representing clients and focus on managing my own money. At least this way I could earn a lot more money with less stress of worrying about someone else’s wallet.
The more I used the system, the clearer it became that I could purchase tons of stock on the exact volume breakout day, using leverage, at a certain buy point, then sell the stock the very same day or the following day, once it’s made its first move. This exact method has earned me lots of money over the years. I’ve played around with this technique, refining and mastering it to near perfection.
What I did was this, I took the roots from O’Neil’s playbook and made the sell and buy points more accurate. Finally, I had a list of my own set of rules added to O’Neil’s. The difference was that the method could be used for short-term trading. I rarely, if ever, keep stocks overnight. This means that I don’t ever have to dread waking up to a bad market because something happened across the globe while I was asleep. I have to say, I sleep a lot better these days!
My sole purpose for creating www.EZBreakouts.com is to give you the chance to learn what I know and utilize them daily when trading stocks. Make sure to check it out for yourself.
To conclude, I wish you great success in making money in day trading.
(By the way, Eddie Z is my nickname in the trading computer world, but my real name is Russ Hazelcorn.)