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 90% 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 recent examples.
On April 26, I alerted traders to a little-known Canadian e-commerce company called Shopify (NYSE: SHOP), which I thought was poised to rally.
By May 2, the stock had risen about 12%. That's an impressive run in just a few trading days, but using the backdoor method, traders were able to book a 35% profit.
A 35% gain in six 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 a security falls? Well, take iShares Russell 2000 (NYSE: IWM) for example.
The ETF fell from $136 to a low around $134 from April 10 to April 13. So, if you had been shorting IWM, you would have booked a gain of about 1.5%. But anyone who used the backdoor trade I recommended made 29%!
Consider that for a moment. You could have made a 1.5% profit from shorting the stock -- a strategy that carries theoretically unlimited risk -- or you could have booked a 29% profit in less than a week using the backdoor method. It doesn't take a mathematician to realize which is the better trade.
It's Less Risky Than It Sounds
So, how does my strategy work?
It's based around trading what are known as options, specifically "calls" and "puts."
Now, I've found that most people -- even those who've traded options before -- don't fully understand how easy puts and calls are to use... or how buying them can potentially help them make more money with less risk.
In fact, many people have this idea that trading options is always risky, that it's a practice reserved for professional and veteran traders. But that simply isn't true. My Profit Amplifier readers and I have been using them to make sizeable gains on nearly every trade.
And these readers are everyday investors, in many cases trading options for the first time. To help them along, each issue of my Profit Amplifier newsletter gets into the specifics of how, when, and where to enter each part of that week's 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.
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. In just the first few months of this year, my subscribers and I have already closed some big winners -- 35% in six days, 29% in four days, 31% in 10 days and 27% in seven days, just to name a few.
I've been teaching Wall Street's backdoor trading method to investors for 15 years now, and I've put together a presentation on it that I'd like to share with you. You can access it here.