“Dominik Kovarik has been a trader and investor since 2008. He manages his own capital in the amount of about 1,000,000 USD. In his training programs, he helps entrepreneurs and people to start trading with stocks and options and further value their earned money. In 2018, he founded Trading LIVE Room, where he shares his short-term trades and then founded the Investment LIVE Room, where he shares his long-term investments and fundamental analysis and helps others succeed. Within a year, it became the largest option and stock LIVE Room in the history of the Czech Republic and Slovakia. His training programs passed already more than 1600 people.”

Greetings,

my name is Dominik Kovařík and I come from southern Bohemia near České Budějovice.

I got into trading and investing for the first time in 2008 when I opened my first account with 100 USD. You can’t even call it a bill, but it was. I quickly multiplied the account and even faster then lost everything. 🙂 Until I was 18, I played a lot of sports – I rode motocross, snowboarding, but mainly windsurfing. I was involved in windsurfing professionally until I was 18 years old. I won the European junior championship in freestyle windsurfing and today it is my big hobby together with snowboarding.

What got me into trading and investing was business.

Business

My girlfriend and I started building online stores in high school. It enabled us to quickly become independent and further develop our business. I knew that I didn’t just want to do business, and since I had already come into contact with trading, I had a plan in my head where I would continue to make my money from business more valuable by investing in shares and trading on the stock exchange. But in the beginning it seemed easy at all. Before I saved more capital, I went through a very difficult period and it seemed that I would probably never start investing.

In 2009 – 2011, when the impact of the mortgage crisis in the USA from 2008 reached the Czech Republic, it affected us a lot. Because we sold online decorations, lighting and products that are closely related to the construction industry, we got into a position where orders stopped coming in almost overnight. Sales dropped by more than half and I was in a situation where I had to fire my girlfriend as well, who had to go to work because I didn’t even have a basic salary. I had to borrow 200,000 CZK to start the business again. We improved e-shops, expanded our products, started selling to Slovakia and focused on advertising.

And it worked.

E-shops started generating decent income for us, but they also took a lot of my time. In the beginning, we held all functions in our company, from website production, marketing, communication with suppliers and customers to packaging in the warehouse and shipping goods.

I knew I needed to get more time to invest, but I also needed capital.

The sales allowed us to hire auxiliary forces and employees mainly for the warehouse, which took up a lot of our time.

Because I understood marketing and online sales, I also started helping smaller businesses in our area to get the necessary capital faster.

And my day looked like this.

In the morning I devoted myself to online shops, by 3 o’clock I was making websites, banners and helping companies with advertising, and from 3:30 p.m., when the American session opened, I started trading.

My first investment and a big loss

At the time when I got into trading, I received money from my parents’ savings account and decided to invest it. I didn’t know much about investing or trading, but I decided to invest in stocks. Specifically to NWR, which was just entering the Prague Stock Exchange. Why NWR, you ask? My dad got a tip on NWR from a stockbroker so I went for it. After about 2 weeks, I was in the plus by about 60,000.

I logged out of the platform and told myself that I would let the money appreciate and see how much there would be in half a year.

After about half a year, I was horrified, I had about 50% of the capital I invested in shares in my account. It was 2009 and almost the entire stock market was headed for the bottom. At the time I didn’t know what was going on. I recovered a lot from the initial euphoria, withdrew the rest of the money and realized that no broker or bank will manage and value your money, as you yourself do.

This was my first impulse to educate myself first before putting any more money into any business.

The possibility of managing my own capital appealed to me, so I immersed myself in Trading fully.

Like most beginners, I stumbled upon forex. Advertisements of brokers flash at you on almost every website about trading, so I decided to try it.

I opened an account, attended several trading seminars, studied the basics of technical analysis and went for it.

And I did quite well! I traded intraday – mostly 1, 5 or 15 min. chart, like most, because at all seminars from Czech brokers I only heard: “Trade the one-minute or 5-minute chart, because you don’t know what will happen tomorrow, in a week or a month, but what will happen in 5 minutes can be traded. I’m not condemning it intraday traders, but the interest of the brokers in this case was clear, that their customers make as many trades as possible, because they have commissions from each one whether you lose or earn, and so it was clear to me that I would not learn to trade at the seminars of brokerage companies.

I traded every day, glued to the screen at the minute chart. When the red candle stretched across the entire screen, I thought I would jump out of my chair, I didn’t use stop loss, I thought: I’m sitting there, if the trade goes against me, I’ll simply get out of it.

I was making money every week, so I thought I would add a little and increase the volume of purchases. It worked amazingly.

I made twice as much money as last week!

The next day, I even earned 18,000 from a single trade. I was completely beside myself with how simple it is. And I read everywhere that 90% of people lose money on the stock market… I kept increasing the volume of trades, I knew nothing about risk management and money management at that time.

I started trading gold for forex and once held a trade overnight. I was very nervous, the next day I got up at half past six in the morning and went to check the positions.

Business went against me. The loss was so great that I did not exit the trade and decided to hold him until he turned around and returned to my purchase.

2 hours later the price was even lower, I waited for the right opportunity and when I saw a sign that the price was turning, I bought more.

Unfortunately, it was only a pullback, the price bounced a little, but then headed down again.

The loss was already so great that I decided to hold on. The next day, gold broke through its strong support and started falling even faster. Within two days I lost my entire account that I had been building for a long time.

I have to tell you that the worst thing is when your intraday trade becomes a swing trade for several days, and what’s more, against the weekly trend.

On the other hand, I’m glad it happened – I learned that big trades are made on big charts!

It didn’t work for me and I started to study trading more in depth, I read dozens of books about trading.

I have found that I don’t learn anything from free seminars from brokerage companies. You need to know much more than just the theory of technical analysis, how to open an account and see a few trades on a demo account.

You need to know your psyche, be in control of your emotions, have functional strategies, know how to manage risk and money management, know how markets work, correlations and above all trade with the right tools and assets.

And I also didn’t want to spend the whole day in front of the monitor and trade the minute chart.

I also wanted to have longer-term businesses so I could go on vacation or pursue my hobbies and business.

I decided to look for professional traders who show live trades, their successful strategies and their view of the market. I went through a lot of courses from professional traders from the USA and took part in individual seminars that cost me hundreds of thousands of crowns and I started to make significant progress.

Stocks, ETFs and Options

I got back to stocks where I made my very first investment in NWR and added options to it.

I don’t mean binary options – please stay away from them, but I mean stock options, with which even one of the richest people on the planet, Warren Buffett, trades.

I did not go to trade on the Czech stock exchange, but I only focus on American or Asian stocks of large companies, stock indices and ETFs.

Why stocks and options?

If you look at the S&P 500 over the long term, you’ll see that it’s in one huge uptrend, and if you’re able to find quality companies that can grow, they end up constantly beating their highs, and if you add to that tools like options, so you have a strong weapon and an advantage in your hand, thanks to which you can consistently value your account.

In addition, if you look at famous investors and traders, you will find them in forex, cfd, but especially in stocks and options.

I immersed myself in it.

And the results started coming in.

Trading was more consistent and less stressful.

I delved more into options trading because they allowed me to trade stocks even though I didn’t have that much capital.

I opened my first options account with TradeStation with $2000 and started testing trades.

At first I focused on buying call or put options. I made a lot of mistakes here, but also some of my biggest deals.

In 2015, I bought a single $500 option on GOOGL stock due for an earnings release and the next day the stock went up almost 20% and the option was worth over $10,000!

Yes, I turned $500 into $10,000 in one day. At that time my entire account size was around 10k so I doubled my account.

I knew options was the way to go because this can never happen to you in forex or CFDs.

And if you know how options work, you know that at the same time $500 was the maximum I could lose even if GOOGL went bankrupt.

Unfortunately, I started focusing only on these risky trades over earnings and within a few months I made the entire $10,000 back.

I broke MM, got overconfident and learned that euphoria is much worse than fear in trading.

Therefore, I started testing other strategies such as debit and credit spreads, iron condor, butterfly and also long-term options.

And consistency began to emerge.

I started sharing my trades and things I was learning on social media and I also started a blog.

People started contacting me asking if I could teach them this trading and explain how I do it.

In February 2018, I organized the first training focused on trading specific In/Out spreads and opened the Trading LIVE Room, where I started broadcasting live 2x a week and sharing my analysis, trades and insights there.

During the year, it became the largest option and stock LIVE Room in the Czech Republic and SK, where today hundreds of active traders meet every week.

I have also begun to focus on longer-term options trades, which I believe offer huge opportunities for both small and large investors looking to increase the appreciation they normally get from stocks.

I share these strategies in the InvestMaster training, in addition to which I host quarterly live broadcasts.

I now manage multiple accounts totaling around $1,000,000.

I decided to start and run these training programs because I know what the jungle is like in the world of trading and investing today.

I’ve been through it myself and know where this world and misinformation can take you.

Money can be earned back, but time can never be earned back.

That’s why I founded an online school and am reforming the entire education system around trading and investing.

As I wrote, I manage multiple accounts. I have one smaller account where I focus on strategies for beginner traders who don’t have a lot of capital available, I continue to manage an account of about $100,000 where I focus on longer term and swing trades with options and then my investment account where I invest longer term into shares and at the same time I bring additional income with options – I share my investments every month in the Investment LIVE Room.

This allows me to help people regardless of their starting capital and any or no experience.

In 2019, with my long-time friend who lives in Switzerland, I created the TradeStreet app, which helps us find unusual situations and opportunities in the markets and is now available to retail traders.

Click here to sign up for an online Workshop to see how TradeStreet can help you too > 

I look forward to possible cooperation and will be happy to help you on your way to trading and investing.

Dominik Kovarik

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