Tomorrow, you could begin doubling your account every single month starting with one letter.
The letter will come from a 20-year trading professional named Ian Cooper. He says, “In 2017, following my trades you would be doubling even tripling your account some months. Let me show you how.”
He will show you exactly what to do... and he’ll give you the blueprint for just $1.
You’ve no doubt been introduced to Exchange Traded Funds by now. Created in the mid-nineties, they are stocks designed to follow the movement of markets the way index funds do, through the buying and selling of the stocks which make up a particular index.
There are some important differences between an ETF and a mutual or hedge fund however. First, because an ETF trades like regular stock, you can buy and sell them anytime of the trading day, use margin, set stop losses, and watch their trading action tick by tick if you like. Second, there are no rules about how often you can trade them, no annual fees, and no waiting a day or more to get your order filled.
An ETF is essentially a stock that tracks and trades through a single share, all the stocks in the underlying index it follows.
Perhaps you have heard some caution regarding how ETF’s are good for short term trading, but are not suitable to be held long term, or that their end of day adjustments can diminish results. I always smile when I hear that, because as you’ll quickly see most of that talk is simply advisor chatter meant to dissuade investors from using ETF’s because after all, for the past decade, ETF’s have been cutting into fund profits in a significant way. So instead of listening to the noise of other’s self-interest, we’ll stick to facts in our discussion here which can be backed up with proven results – covering decades of time.
No Expertise Required
When it comes to your money, it’s critical to take an honest look at how much you are earning using current investment strategies versus what could reasonably be made with other approaches. And while one of the best ways to measure that is by simply comparing the returns of one investment strategy against another, it is also critical to consider how much expertise is going to be required by each strategy to achieve those returns.
Options for example, are powerfully leveraged instruments that can produce exceptionally high returns, but in reality, the amount of knowledge and trading expertise required to trade them profitably over the long term, is usually overlooked and far too often above the trading expertise of investors who dabble in them.
You Choose
Let’s begin learning how to Triple Your Returns by starting with this one simple question: On the following graph, which of the three ETF’s representing six year returns for the S&P 500, would you have preferred to see in your portfolio?
The lowest line on the graph is the performance of the single beta ETF – the SPY, which tracks the S&P 500 index at a 1:1 ratio. If the S&P moves up 1% the SPY will also rally by 1% (it’s not perfect, but always very close). Contrarily, if the S&P is down 1%, the SPY should also fall by 1%.
Since the start of the bull market in March of 2009, the SPY climbed from $60 to a fantastic $209 over the next six and a half years, a gain of nearly 225% over that time. The important thing to remember is that SPY represents all 500 stocks of the S&P 500 index, and traded all by itself, the SPY is a single stock that acts like a fully DIVERSIFIED S&P fund!
Now let’s look at a how we could improve that return.
The next line on the chart (red) is a double beta ETF – the SSO. It also tracks the S&P 500, but leverages its return 2:1. - hence the reason it is referred to as “double beta”. At the start of the bull market the SSO was priced at $7 (adjusted for splits), and proceeded to climb to $68 by June of 2015. That’s a gain of nearly 725% – or triple the SPY!
Guess what just happened? Even though the SSO is only a DOUBLE beta stock, by using it you TRIPLED YOUR RETURNS on the S&P!
Did you have to use options to get those results? No. Did you use a margin account? No. Did your brain explode from learning all kinds of new strategies? No again!
All you did was the same thing a regular mutual fund investor would have done during the same time: buy the fund (the ETF stock in this case) and just sit on it for six and half years!
But without sounding trite, I’m going to show how it gets even better!
On the same chart, now let’s look at the incredible gains of the highest line (green) on the chart. That chart line represents the triple beta ETF – the SPXL, which tracks the S&P 500 too, but with a daily ratio of 3:1! In other words, when the S&P was up 1%, the SPXL was up 3%!
And note what happened over time for those who continued holding on to that ETF. For the same six and a half years of time, you would have earned a spectacular rate of return of nearly 1700%! That’s right, $10,000 would have become $170,000! Crazy what a small change in what we buy can do, isn’t it?
And notice, you didn’t have to understand anything more than to be an owner of the ETF while markets were going up, and a seller of them when markets top out.
PLEASE READ: Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by TradeWins. For additional information on auto-trading, you may visit the SEC’s website: All About Auto-Trading, TradeWins does not recommend or refer subscribers to broker-dealers. You should perform your own due diligence with respect to satisfactory broker-dealers and whether to open a brokerage account. You should always consult with your own professional advisers regarding equities and options on equities trading.
1) The information provided by the newsletters, trading, training and educational products related to various markets (collectively referred to as the “Services”) is not customized or personalized to any particular risk profile or tolerance. Nor is the information published by TradeWins Publishing (“TradeWins”) a customized or personalized recommendation to buy, sell, hold, or invest in particular financial products. The Services are intended to supplement your own research and analysis.
2) TradeWins’ Services are not a solicitation or offer to buy or sell any financial products, and the Services are not intended to provide money management advice or services.
3) Past performance is not necessarily indicative of future results. Trading and investing involve substantial risk. Trading on margin carries a high level of risk, and may not be suitable for all investors. Other than the refund policy detailed elsewhere, TradeWins does not make any guarantee or other promise as to any results that may be obtained from using the Services. No person subscribing for the Services (“Subscriber”) should make any investment decision without first consulting his or her own personal financial adviser, broker or consultant. TradeWins disclaims any and all liability in the event anything contained in the Services proves to be inaccurate, incomplete or unreliable, or results in any investment or other loss by a Subscriber.
4) You should trade or invest only “risk capital” – money you can afford to lose. Trading stocks and stock options involves high risk and you can lose the entire principal amount invested or more.
5) All investments carry risk and all trading decisions made by a person remain the responsibility of that person. There is no guarantee that systems, indicators, or trading signals will result in profits or that they will not produce losses. Subscribers should fully understand all risks associated with any kind of trading or investing before engaging in such activities.
6) Some profit examples are based on hypothetical or simulated trading. This means the trades are not actual trades and instead are hypothetical trades based on real market prices at the time the recommendation is disseminated. No actual money is invested, nor are any trades executed. Hypothetical or simulated performance is not necessarily indicative of future results. Hypothetical performance results have many inherent limitations, some of which are described below. Also, the hypothetical results do not include the costs of subscriptions, commissions, or other fees. Because the trades underlying these examples have not actually been executed, the results may understate or overstate the impact of certain market factors, such as lack of liquidity. Simulated trading services in general are also designed with the benefit of hindsight, which may not be relevant to actual trading. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. TradeWins makes no representations or warranties that any account will or is likely to achieve profits similar to those shown.
7) No representation is being made that you will achieve profits or the same results as any person providing testimonial. No representation is being made that any person providing a testimonial is likely to continue to experience profitable trading after the date on which the testimonial was provided, and in fact the person providing the testimonial may have experienced losses.
8) The author experiences are not typical. The author is an experienced investor and your results will vary depending on risk tolerance, amount of risk capital utilized, size of trading position and other factors. Certain Subscribers may modify the author methods, or modify or ignore the rules or risk parameters, and any such actions are taken entirely at the Subscriber’s own election and for the Subscriber’s own risk.