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Most investors have been trained to think that earning 6% or 8% a year on their trades is admirable. And the old saying is true: No one ever went broke taking a profit. But that doesn't mean they got rich that way.
You can bet Wall Street traders don't settle for such meager returns, and your average trader doesn't have to either.
The same methods used by Wall Street's elite are available to average traders. It's just that they often don't know about them or are too scared to try them.
For instance, there is a way to potentially amplify those 6% to 8% gains into 30%, 50%, even 65% windfalls or more in a matter of months, weeks or even days.
And I'm not talking about buying micro-cap stocks that no one has ever heard of. You can make these returns from some of America's biggest and most well-known companies.
Wall Street's 'Backdoor' Trading Method
Some of the most famous and richest investors in history (including Warren Buffett) use a backdoor trading method to amass much of their wealth. I say "backdoor" because, while it's certainly not a secret, you won't hear it talked about by 99% of the financial talk media.
Given how powerful it is, it always amazes me that more people don't take advantage of it. This strategy takes small moves in a stock's price and amplifies them into gains of 5-10 times as much. And it often carries less risk than your average long or short trade.
Let's walk through two quick examples.
On Oct. 30, I alerted traders to a little-known cyber security company called FireEye (NASDAQ: FEYE), which I thought was poised to rally.
By Nov. 3, the stock had risen about 7%. That's an impressive run in just a few trading days, but using the backdoor method, traders were able to book a 47.5% profit.
A nearly 50% gain in five days should be enough to get most people interested, but one of the best parts about this strategy is that it can be used to profit whether stocks go up or down.
How can we profit when stocks fall? Well, take Viacom (NASDAQ: VIAB), for example.
The stock fell from $89 to a low around $30. So, if you had been shorting VIAB the whole time, you would have booked a 66% profit.
From those lows, VIAB bounced along with the broader market, adding about 12 points in just over a month. At this point, my analysis showed VIAB was due for another drop.
And I was right. In less than a month, Viacom fell about 7%. But anyone who used the backdoor trade I recommended made 35%.
Consider that for a moment. You could have made a 66% profit in a year and a half shorting the stock -- a strategy that carries theoretically unlimited risk -- or you could have booked a 35% profit in less than 20 days using the backdoor method. It doesn't take a mathematician to realize which is the better trade.
Why I Want to Teach You This Trading Strategy
It may sound corny, but I honestly believe this trading strategy could forever change your financial future. I've seen it happen with many people before.
I want to get a bit personal with you for a moment. Sunday was the anniversary of one of the most tragic events in American history.
At the time, I was working as a trader in New York right next to the World Trade Center.
I was commuting because I used to spend my weekends at home in Philly and stay at my New York condo during the work week.
Normally, I would take the train in. In fact, I would have come in through the World Trade Center on the PATH train around the time the first plane hit.
But on that day, I didn't take the train in, and it wasn't even for a good reason. I was young, single, living the high life my trading career allowed me to. Let's just say I wasn't being all that responsible.
The day before, the 10th, was my birthday. So I had gone out that night, stayed up late and ended up sleeping in the following morning. As a result, I didn't make it to work the next day.
It was literally by a stroke of luck that I'm alive today.
I lost a lot of my friends that day. Many of them had kids. They came to work that day to support their families, and they never made it back home.
I realized I needed to make a change in my life. That's when I decided I wanted to give back.
I moved away within a year, leaving the Wall Street scene completely, and I started showing other people how to make money in the stock market.
From the studies I've seen, roughly 80% of investors don't do well in the stock market. And over the years, I've seen many people struggle. They shouldn't have to, especially when I know how to help them.
I've been teaching Wall Street's backdoor trading method to investors for 15 years now, and I've just put together a brand-new presentation on it that I'd like to share with you. You can access it here.
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