Trading and short selling with Kozok - a yield beyond 100,000%
- how $4,100 turned into more than $7,000,000...
Flemming Kozok, July 2021. Photo: Bjørn Stig Hansen
Flemming Kozok started his trading career at the age of 15. Funding for his initial trades was derived from the savings earned in the job as a dishwasher at a local restaurant.
Kozok began his day trading activities in January 2000, after which he for a period of 6½ years (January 2000 - June 2006) generated a total income from his trading activities at
around DKK 16 million. The return measured in USD amounted to approx. 51,300%, in other words, a 514-fold return on capital. In total, Kozok has earned DKK 44 million in day trading
after trading costs.
This return is based on the starting capital of $4,100 or approximately DKK 32,500, where Kozok changed his strategy to pure daytrading.
In 2000, he managed to 129-double his capital based on 25,019 trades in the US stock markets. He thus executed more than 110 trades on average
every day consistently through the year. In the course of just one year, DKK 32,500 yielded to DKK 4.2 million, which created the foundation
for Kozok's further activity as a full-time day trader.
Yield record 2000-2006
Flemming Kozok generated:
- In 2000 a yield of 12.800% based on 25.019 trades.
- In 2001 a yield of 114% based on 20.241 trades.
- In 2002 a yield of på 84% based on 10.285 trades.
- In 2003 a yield of på 274% based on 11.856 trades.
- In 2004 a yield of på 141% based on 8.687 trades.
- In 2005 a yield of på 118% based on 7.828 trades.
- In the first half of 2006 a yield of 115% based on 8,494 trades.
During the period of full-time trading activity from 2000-2006, Kozok carried out more than 100,000 equity transactions in the US stock markets. Including part-time activity in the subsequent period,
Flemming Kozok has generated in excess of 180,000 trades in the US stock markets. In total, he has paid about DKK 16 million in aggregate trading costs in connection with the execution of these
transactions. It is thus clear that with a particularly high frequency of transactions, the trader must be prepared to cover substantial trading costs before the activity becomes profitable.
However, most of these costs are not related to ordinary brokerage fees, but fees per traded share, or "per share fees". Costs related to active trading in securities with a low absolute value can thus prove to be particularly high.
See more about costs (in Danish) here.
Flemming Kozok's return has echoed through the years. - Here Harau Valley, Bukittinggi, Sumatra, July 2011 (private photo)
Part-time day trading – yield record 2007-2011
In the period 2007-2011, Kozok operated only part-time in the market place. Among other things, during this period he served on the board of two smaller companies and served as CEO of a smaller
Danish venture capital company. Moreover, he completed his MSc degree at CBS in Copenhagen (2008-2010) and has furthermore taken part in numerous projects, for instance, collaboration with the largest online broker in Scandinavia, Nordnet Bank.
In the period 2012-2015 Flemming Kozok combined increased intensive trading with a lot of travel activity. This period resulted in several personal records in the markedet, including a strong year of 2013 with a profit from trading at about DKK 9 million (DKK 11 million before costs).
In the period November 2016 - July 2021 Kozok worked as a Special Consultant for the State Prosecutor for Special Economic and International Crime (SØIK), generally known (in Danish) as “Bagmandspolitiet”. In newspaper articles of October 2017
as well as a radio interview in the danish podcast Millionærklubben
and an article on TV2.dk in July 2021
it has been highlighted that Kozok was deeply associated with the investigation of the "dividend case";
Denmark's biggest ever case on suspected fraud, in which foreign actors, in the period from 2012-2015, had been credited dividend tax reclaims for an aggregate amount of DKK 12,4 billion / euro 1,65 billion.
Despite other activities and less focus on day trading, Flemming Kozok has continued to generate the following return from the day trading dedicated capital:
- In the last six month of 2006 a yield of 28.17% based on 2.858 trades.
- In 2007 a yield of 43.78% based på 6.277 trades.
- In 2008 a yield of 52.70% based på 4.530 trades.
- In 2009 a yield of 159.88% based på 4.507 trades.
- In 2010 a yield of 44.29% based på 3.208 trades.
- In 2011 a yield of 85,48% based on 7.851 trades.
Select highlights:
- For the month of September 2008 (the first month of the financial crisis) the yield was 22% based on 1.738 trades.
- Flemming Kozok through 180 trades made new a profit record on a single day, March 21st 2013, where he earned USD 127,909. Earlier record was USD 78,000.
- LATEST UPDATE: Kozok during the period November 2020 to February 2021 generated a profit of DKK 7 million based on about 3,000 trades,
referenced in the Danish radio podcast Millionærklubben Sommer Special juli 2021.
During the period 2011-2015 Flemming Kozok has written blog posts about various aspects of trading for Nordnet.dk.
An overview of the published blog posts can be seen below:
03.06.2015:
Nordnet: Arenaen der forandrede sig
27.10.2014: Nordnet: "Put Your Hawks’ Eyes On"*
24.04.2014: Nordnet: Bogudgivelse - "Traders of The New Era"*
14.01.2014: Nordnet: En føler i felten - "Take feel to the field"*
02.07.2013: Nordnet: 4,6 mio. på 3 timer: En stor dag og dens betydning*
18.06.2013: Nordnet: No Love: En trader forelsker sig aldrig*
07.05.2013: Nordnet: En velsignet kombination: Similiaritet - Volatilitet - Likviditet*
03.04.2013: Nordnet: 1 mio. kr. på én dag: Intet nyt er godt nyt*
25.10.2012: Nordnet: Trading - fejlfortolkning, kompleksitet og individet bag*
25.10.2012:
Nordnet: Om algoritmebaseret handel og konsekvenser for trading
25.04.2012: Nordnet: Et fundament mod uhensigtsmæssig tøven*
26.01.2012: Nordnet: De gode, små tab; et system der fungerer*
24.10.2011: Nordnet: Kurtage - en omkostning eller en investering?*
15.09.2011: Nordnet: Frygten som det stærkeste værn*
30.08.2011:
Nordnet: Short Selling: Myten og Syndebukken
04.04.2011: Nordnet: Kravet til hurtig omstilling - Rare Earth & Uran*
31.03.2011: Nordnet: Investors bekymring er den kortsigtede aktørs velsignelse*
31.03.2011: Nordnet: Den kortsigtede investor*
"Everything changes, but nothing ever changes."
-- Ukendt
"Water seeks its own level."
-- Ukendt
"Look into the mirror - that's your competition."
-- Ukendt
"Know what you own - it has value."
-- Ukendt
"Split opinions make a market."
-- Ukendt
Relaxing with Kafka on the porch. From a tour of Indonesia, July-August 2011 (Private photo)
Litterature
Edwin Lefèvre's Reminiscences of a Stock Operator
is one of Flemming Kozok’s absolute favorite books about investing. Edwin Lefèvre’s main character in the book is by many meant to be pseudonymous for Jesse Livermore, perhaps the greatest speculator which have ever lived. However, Edwin Lefèvre was a real person, among other things he worked as a diplomat, column writer, journalist, and author.
Flemming Kozok has through his career as a day trader in the real world often derived parallels to points and situations in the book. With a background in the books many punch-lines and dogmas, it appears for Flemming Kozok as being the book which has taught him most of all.
As Flemming Kozok himself emphasizes: "One fantastic aspect about this book is that - in spite of having been written quite a while ago - it seems that not one single aspect in the ways of thinking related to trading the markets has changed till this day. With this book
the reader can experience not only an interesting and well-written story, but also learn a lesson or two in an unexpected and very fascinating manner."
The book is an essential classic which gives an almost immortal and present insight into the psychology of the market which still exists today.
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