The Trading Secrets of Hedge Funds, how they trade stocks, etfs, commodities and options ($GLD, $SLV, $UNG)

4/11/2013

I have been very pleased with the amount of feedback I have received from readers of this blog, and I thank you for all your comments. One of the things that I have noticed from the hundreds of emails I have received is that people want creative and lucrative ways to trade stocks, ETFs, commodities and options, so I am going to list some of the secrets that I have learned in my 14 years ofworking in the hedge fund industry as both a trader and an analyst.

1) How to trade commodities, and commodity futures – I use pattern recognition only. Pattern recognition is using past historical patterns which have been back tested over huge data sets (a million or more units of data) to find recurring patterns that have profitably predicted price direction. My favorite patterns in commodities use both momentum and mean reversion. My average holding period is usually 1 to 3 days, and these profitable historical patterns occur almost daily in one of the 20 or so commodity markets.

One of my favorites patterns is based on volatility reversion, this pattern begins when a commodity market makes a strong move in one direction then pauses and consolidates, volatility drops, and then you buy when price breaks out again. Right now this pattern is occurring in the gold and silver markets. One way retail investors can trade this is through the use of leveraged inverse etfs from proshares, proshares has 2x short silver and 2x short gold etfs, and these ETFs are just as powerful as the actual commodity futures.

2) Options, this is the real secret way traders at hedge funds make huge returns. Flat out options can make you rich!! I have seen many traders including myself that have turned a $10,000 account into $100,000 very quickly trading options. Some of the secret techniques that I use to trade options are: the secret stock replacement strategy, strangles, penny options and synthetic calls. These secret option techniques not only produce huge returns but protect you against market downturns as well.

3) ETFs– I trade ETFs using leveraged ETFs but again the best most lucrative way to trade ETFs is to use ETF options. Again I have seen people make $10,000 and $20,000 dollars in a week trading ETF options on Gold ($GLD), silver ($SLV), natural gas ($UNG) and volatility ($VXX) just to name a few.

4) Stocks- this is by far the most safest and most lucrative way to become a millionaire. Stock are the place where you should have the bulk of your personal assets in. The reason there is no better risk reward than stocks, especially when you use my “follow the billionaires money” technique which allows you to follow the worlds best billionaire investors and hedge funds. These stock can produce 100% and 200% returns but also have limited downside, meaning you can feel safe and sleep at night with this technique. To find out more about this strategy check out www.billionairesportfolio.com

If you want to learn more about the secrets that billionaire hedge fund traders use to make 100% 500% even 1000% returns than please visit www.billionairesportfolio.com.

Will Meade

Editor of the Billionaires Portfolio