B12 Trader is completely open, honest, and 100% transparent. All trades verified with authentic account statements. The trading advisory is well managed, with all signals very clearly stated and easy to follow. Extremely reasonable price at only $39 each month. An add on educational product that coincides perfectly with the trading signals. High quality service. Great for newbies.
Today’s Review is Jasen Baker of B12 Trader.com
What is B12 Trader? B12 Trader is a stocks swing trading signal advisory that specializes in only 12 distinct ETF’s, or exchange traded funds. The trading program is designed from a global macro perspective, the main idea of the B12 trading system is to trade a broad spectrum of companies and commodities, across many different global markets. In a nutshell, this is not a traditional stock picking service, rather this sort of trading attempts to highly diversify positions and spread risk across many different companies through the use of Exchange Traded Funds. This might sound confusing to some, however the idea of broad diversity is an idea built upon a solid foundation.
The owner B12Trader.com is Jasen Baker. Who in the heck is Jasen Baker? Jasen is a cloud solutions engineer for Google, located in Palo Alto, Ca. Jasen has been trading the markets for over 20 years, and has a long history of proven success. Over the years, he has built a tiny trading account into a really big trading account. He has perfected his trading methods twofold; firstly he has fine tuned a macro approach to the markets that just plain works (I have proof-Account Statements), and secondly he has also fine tuned the teaching of his method by being the resident “stocks guru” on the Google campus, also known as Googleplex in Palo Alto.
What is really interesting about Jasen is that he teaches a stock trading class at Google. There are a lot of really smart people that work on that 5 acre campus, and many of those very brainy people also attend his trading trading class. Its one thing to go onto the internet and proclaim yourself a stock trading guru, its an entirely different thing when you are teaching fellow engineers at Google how to play the stock market. As you can imagine, giving stock trading advice to fellow engineers at Google could quickly become a sticky situation if Jasen was losing everyone’s money! However, Jasen is perfectly comfortable getting up in front of room full of brainy computer engineers because he has a proven track record of excellent performance.
Before I get into the meat and potatoes of this review, I think that it is important that you know that I have formed a marketing agreement with Jasen. If any of my readers purchase something from Jasen, then he is paying me 25% of the gross sales volume. Some of you might be turned off by this arrangement. However, B12 Trader will now be only the 3rd person that I am willing to advertise on TradingSchools.Org. The first would be Google, then TopStepTrader, and now Jasen Baker of B12 Trader. In addition, I will also be trading right along with any subscribers. It would certainly be fair for you to look at this review with a jaundiced eye, and be cynical of my cheer leading. However, after reading the amount of vetting, research, and effort that I have put into checking this guy out…hopefully you will understand why I feel this is service is worthy of at least a closer look.
When it comes to trading. All that really matters is performance. Jasen contacted me this past June and asked that I write a review of his service. I was blunt honest with him and told him that my review could very well backfire. As many of my readers know, I am the nastiest of reviewers. The stuff I write can be downright cruel and I told Jasen that the review is going to feel like someone has rifled through is underwear drawer. He just laughed. In fact, he commented that he has been reading the TradingSchools.Org blog for several months and felt it has been a long time coming that someone has the guts to call out the many trading frauds and charlatans that occupy as much web space as internet porn.
Jasen also explained to me that since he officially went public with his subscription trading service, that he was having an extremely difficult time being discovered. There are quite literally thousands of stock trading guru’s, all offering the riches of King Solomon, and that he felt like a tiny voice struggling to be heard in a vast ocean of trading guru nonsense. We both agreed that I would attempt to elevate Jasen a few pegs up the ladder of BS (or down), and hopefully he can start getting some of the recognition that he deserves.
On a side note, when I began the TradingSchools.Org blog, it was my hope that I would be able to clear out some of the scammers and useless noise makers, and make room for the legitimate vendors to rise up through the cacophony of marketing noise. Slowly but surely, I believe that I am making forward progress.
OK, so lets talk about Jasen’s trading performance. In speaking with Jasen, I was crystal clear that I was not interested in any sort of customer testimonials, I was only interested in verifiable account statements from a legitimate stock brokerage. Jasen was more than happy to oblige my request. However, I have also had vendors send me photo shopped brokerage statements that were outright fraud. And so Jasen and I agree that he would screen share with me, and then we would log into his account at Fidelity, downloading all of his statements since the inception of the account. This was the only way that I could be completely sure that everything was absolutely accurate and above board.
I have two sets of results. The first set ranges from December 2014 to August 2015, this set represents the starting date of the B12Trader.Com advisory service. The second set represents prior years. However, for posterity sake we felt it best to detail every single trade going back to December 2014 to present, this was the actual start date of the B12 advisory. Prior years would simply be presented as an annual percentage of returns.
From December 2014 through August 2015, Jasen has traded an even $20,000 per trade, for each ETF position. December 2014 to present are the standardized amounts and give a very clear and accurate picture of performance. Prior to 2015, Jasen traded non standardized amounts and the performance summary is best represented in % of returns on account. So lets now take a look at December 2014 forward. The following is a spreadsheet of the trades that were downloaded directly from Fidelity.
Trades Displayed By The Month
As you can see, these numbers look very impressive. In particular, what I like to see are the low levels of draw down, and the consistency in the monthly income. For me, I live off my trading account, and having something that produces consistent monthly income is a huge plus. And, the trades are evenly placed throughout the month, without huge commissions paid to brokers.
Another thing that I really like about this style of trading is that I am not glued to a monitor all day long. All trades are entered on the open. In additional to a simple order entry, each order comes accompanied with exact stops and profit targets. I don’t need to be check my email for intraday alerts and special situations. This is a low stress form of trading.
Finally, I really like that he is trading broad based ETF’s which cannot be manipulated with front running schemes. One of the worst such front running schemers would be Jason Bond of Jason Bond Picks, you can read about his front running scam here.
What about prior trading histories?
In reviewing Jasen’s previous years of trading, its also model of consistency and smooth performance. Annual returns ranging from 22% to 180% over 8 years, without the big nasty draw downs that are difficult to emotionally weather.
What markets does Jasen trade?
The B12 trading system covers 12 unique markets, across 12 different asset classes and international markets. All of the following are ETF’s.
- SPY or the SP500 tracking stock
- TLT which tracks the 20+ Treasury Bonds
- IYR which tracks over 100 U.S. Real Estate Companies and REITS
- EWZ which tracks 85% of Latin American Markets
- FXI which tracks 25 largest stocks in China
- VGK which tracks 15 largest stocks in Europe
- PIN which tracks the 50 largest stocks in India
- EWJ exposure to 85% of the Japanese Stock Market
- RSX exposure to 50 companies across different industries in Russia
- EEM exposure to emerging growth companies in China, South Korea, Taiwan, Brazil, South Africa, India, Russia, Mexico, Malaysia, Indonesia
- GLD which tracks the spot price of Gold
- FCG expose to 30 companies in the Natural Gas Industry
Why does Jasen focus on broad based ETF’s?
Jasen believes that trading in individual stocks is a recipe for disaster. What happens if the CEO lies about earnings? Or if a company has a surprise announcement that shifts the price up or down 50%? These types of scenarios are to be avoided. Instead, he believes that broad based ETF’s mostly avoid price shock and display simple and easy to identify trends. Jasen goes by the thesis that there is always a bear market, or a bull market, somewhere in the world. You simply need a plan to take advantage of global macro trends.
Another thing I like about Jasen’s method is that he is only looking for trades that are screaming off of the chart. The chart should be begging to go in an obvious direction. Anything less should be avoided. Simply follow the big money as it flows around the globe, identifying the major global macro trends and just plain go in the prevailing direction of the major trend. Simplicity is the key.
B12 Educational Product
In addition to the daily signal service at a monthly cost of $39, Jasen has also created a series of .pdf’s and videos that describe in exact detail how each trade is selected. Normally, I am not very high on educational products, however Jasen presents a set of exact rule sets for both long and short side trades. I watched all of the videos and read the trading manual and found the information valuable and dovetails perfectly with the nightly trading advisory. The cost of the educational product is a very reasonable $399.
In speaking with Jasen, I asked him some particulars of the how and the why of the educational product. He explained the educational product is exactly what he teaches on the Googleplex to fellow Google employees. The opportunity to sit with real people and speak with them directly, one on one, has really refined his approach to teaching his method. A lot of the trading products that I see on the market are just a bunch of technical indicators with some hastily written explanations regarding chart patterns. However, Jason breaks the material down into modules complete with real world examples of trades taken with the B12 advisory service. The educational product dovetails perfectly with the advisory.
One of the interesting questions that I asked Jasen is the WHY? Why is he doing this stock trading education and advisory service? I mean really, the advisory at a cost of $39 a month is a pittance. He certainly is not going to get rich from this. He gave me a pretty lame reason, “I like to teach, its fun”.
Another thing I found interesting is that nearly all of Jasen’s current B12 subscribers are fellow employees that work with him at Google. What would happen if his advisory starts losing boatloads of money, wouldn’t this create a really bad work environment? He explained that he has been doing this for so long, and had so many years of success, that he is supremely confident that his robust approach will continue to stand the test of time. I felt OK with that answer.
A Market Crisis
I began writing this blog post about August 15, 2015, at the time I began this article Jasen was up about $5,000 for the month. And then we had the big crash of stocks that commenced on August 21, 2015. I was really interested to see how he handled this market crash. Truthfully, it was fun to read his nightly market reports complete with the trades heading into the next trading day. Jasen had one of his worst trades ever…he took a short in the Chinese stock market, only moment before China announced a surprise rate cut. He got smashed on the trade. Did he hide and simply move onto the next trade? No, he actually sat down that evening and sent out a very good blog post on dealing with greed and how to take a big loss from an emotional perspective. I do enjoy reading his blog post. Lots of good information.
Wrapping Things Up
I would like to wrap this blog post up with an observation regarding swing trading vs. day trading. Over the past 10 months, since I began writing these trading reviews, and covering this crazy world of trading educators, I have noticed something very obvious. The most obvious thing I have noticed, observed, and written about is that swing trading appears to be the most reliable form of trading. Not only is it cheap and relatively easy to learn, but the performance of swing trading advisories is generally better than the day trading advisories. In particular the learning curve. Swing traders tend to take a more simple approach to the markets, free from fancy day trading indicators that are just as likely to lose or win. Swing traders tend to focus on larger overall trends that just seem easier to capitalize upon.
Another thing I really like about swing trading is that a person does not need a fancy software package with high monthly fee’s, and fee’s associated with real time intraday data. Most newbie traders seem to believe that they need to have a finger plugged into the flow of even the most minutia of price fluctuation, as if this is going to help them take small scalps for quick and easy profits. However, I am discovering that the shorter a time period that person chooses to trade, then the higher probability of failure.
Lastly, another positive benefit of swing trading is the time commitment. For my own personal trading, I am increasingly moving away 5 minute bars and am now putting more focus on daily bars moving in an obvious trend. For me, the move away from intraday and the frenetic checking of intraday prices has been a real improvement to my mental health. As well as gives me more time to write these reviews and do other things I find enjoyable.
Well that’s it for now. Also, Jasen offers a free two week trial, no credit card required. This should give you a bit of time to observe and ask Jasen questions and see if this style of trading is a good fit for you. And please don’t forget to leave your comments below. Even the haters and trolls will find that their voices are heard.