Reasons
to trade the markets
By David Vaughn
February 9, 2007
www.goldletterdv.com
"Their reasoning is that if they hold on to everything they have long enough that they will all perhaps go to a million and they will be rich.
And who knows? This might happen. But this game is all about odds and those odds are not reality.
But those investors who can truly figure out how to beat the odds are the ones who really strike it rich.
And how do you beat the odds and play in their favor?
What am I talking about? I am talking about the humble investor who learns to trade repeatedly and is happier with smaller and more attainable conservative gains.
Am I nuts here? Let me illustrate below how simple averaging of small gains can build your portfolio considerably in value over time.
Consider starting with a humble $25,000 dollars at the beginning of the year and imagine that you could get only 30% return off of that principal yet duplicate this every month.
While the time frame is stretching it a bit the reality is that 30% is not too difficult a return to achieve with regularity in this bull market.
Anyway, let’s play our math game here.
In 3 months you would double your money.
In 9 months your $25,000 dollars would be worth over a quarter of a million dollars.
At the end of 12 months your original humble $25,000 dollars would have grown to over $582,000 dollars.
That humble easy 30% appreciation you used to laugh and scoff at all of a sudden looks very attractive doesn’t it?
Sure, to achieve an even 30% each and every month may be stretching reality but the principal is valid even if you have to stretch this formula out by a few years.
My point is do not scoff at 30, 40, 50% gains because even these smaller percentage gains may build wealth. We all want to score a touchdown with an Aurelian that climbed from 50 cents to 40 dollars but get real folks.
You can still amass true wealth via trading with smaller gains.
It is just wrong to think that the only way you are going to make real money is by scoring a 10 bagger. Sure those 10 and 20 baggers are nice but concentrate on the smaller gains to be won also. "
By David Vaughn
February 9, 2007
www.goldletterdv.com
That is how you can achieve the same goal with Swing Trading
It has grown in popularity over the past few years as more investors appreciate the power of making small gains over and over.
Did you know that making an average of just 6% per trade every 2 weeks can double your money every 6 months if you re-invest your gains?
Here's proof:
Starting Investment: $1,000
Month Start of Month Profit(%) Profit($) Total - end of month
1 $1,000 12 $120 $1,120
2 $1,120 12 $134.5 $1,254
3 $1,254 12 $150.48 $1,404.5
4 $1,404.50 12 $168.54 $1,573
5 $1573 12 $188.76 $1,761.76
6 $1,762 12 $211.42 $1973.41
Swing traders often make over 5% in one day with small caps.
It happens all the time.
No wonder this form of stock trading has grown in popularity!
And the best part of all is that you can re-invest your profits and quickly compound your money.
If you were to double your money every 6 months for 5 years, you could amass over a million dollars starting with just $1,000! That's the long-term potential of making small gains over and over.
Of course, very few make this kind of money in the market because they don't consistently re-apply the technique in a disciplined way, they have no clue how to determine when the market is turning, and they don't understand the power of using a proven fundamental ranking system.
Another great benefit of swing trading is that it enables part-time investors to trade while working full-time day jobs.
Using our optimized stock trading system, you can place all orders to buy and sell stocks in the evening online.
Just imagine the potential result of combining swing trading with the best fundamental analysis and ranking system.
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