In the past 12 months, a rookie investor named Richie has increased his money by over 300 percent, trading with a certain method that he learned in approximately one week.
Richie has the distinction of comprehensively outperforming Wall Street, thereby embarrassing its so-called pros. He is a typical example of your ordinary guy doing extraordinary things by using simple rules.
So, from someone who has quadrupled his money from $7,500 to $30,000, here is Richie’s NUMBER ONE GOLDEN RULE:
Take your first profit early and protect your position so your winners don’t turn into losers.
In practical terms, this means you have to set a conservative profit target for your trade, at which point you collect your winnings for half of your position. This is a bit like instant gratification for a trade done well – your “chocolate” if you will. The other half of your trade is left open in case the stock price keeps going in a favorable direction. If it does, you stand to make a windfall profit. If it doesn’t, you’re protected by making sure you exit at the price you opened your trade, thereby protecting that first profit you already banked.
It’s crucial that you follow these rules and don’t get greedy. By not taking your first profit, you risk the stock moving sharply against you and allowing your paper profit to turn into an actual loss. By contrast, if you took all your profit at the first target you could miss out on potentially life-changing windfalls when the stock gallops in your favor. So the solution is to (a) satisfy your cravings for instant gratification (take half your profits at the first profit target) and (b) satisfy your need for “fruit and veg” (keep half your stake open for a windfall profit opportunity).
It’s these windfall profits that enable Richie and others to bank phenomenal returns. And Richie is no one-hit wonder. He only risks 3 percent of his money on any one single trade, meaning his performance spans over 100 trades.
Richie is one of the fortunate few who have discovered a method of trading that’s easy to execute and doesn’t take much time.
“I only trade one pattern in the markets,” says Richie, “which means I only have to focus on one thing and get very good at it. Before I discovered this method, I found trading time consuming and complicated. Now it’s a pleasure and something I look forward to for just minutes per day. And the results speak for themselves.”
If you want to read more about how Richie and other traders are outperforming Wall Street, click here to read their fascinating story.
[Ed. Note: Trading expert and bestselling author Guy Cohen can show you how to generate your own massive returns trading stocks with his new program. Get all the details here. ]
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