A couple of weeks ago I posted a note from my partner, one of the best macro traders I know, warning you that a “messy unwind” was in-store for gold. He told you that 1522 in gold was the big breakdown level. Indeed, that was the level that started the purge in the massive gold trade.
He’s telling me today, this unwind is far from over. And he says gold is giving you the “gift of a lifetime!”
He says, “It’s a second chance … a gift, to sell it now!” I couldn’t agree more.
Below is more of his analysis. You should read this carefully …
“You can see in this chart below the ugly breakdown in gold. And you can see the beautiful 61.8% retracement of the breakdown. The sheep-herders (Wall Street, Bill Gross types, financial advisors, mindless financial journalists) have all been working overtime to keep the sheep (mom-and-pop, the average guy, the mindless institutional investor drones) content and optimistic, while riding the sinking gold ship. And they’ve convinced plenty to gobble up more gold here.
With that, we get a text book technical pattern to sell, as you can see in the chart below.
Again, this is the gift. If you have been sucked into this gold trade, get out, while you can. The entire logic behind this gold/hyper-inflation hedge was flawed to begin with and has been proven dead wrong. Five years into the global economic crisis, and trillions of dollars worth of emergency policies extended (from all global central banks) and yet we still teeter on the edge of a deflationary spiral. Why? Because you can’t print your way to demand in a massive global debt crisis. Without demand, there’s no jobs. Without jobs, there’s no wage inflation. Without wage inflation, there’s no credit demand. No credit demand, no inflation. No inflation = Don’t get stuck with gold.”
Bingo.
So why are you holding the bag (of gold), with a massive premium that has been priced-in for a scenario that is proven to be flawed?
Believe me: My friends, some of the smartest hedge fund traders in the business, are laying into this trade (i.e. adding to shorts). Don’t be on the wrong side.
You don’t get rich buying gold. If you want a way to get rich, follow our Billionaire’s Portfolio service.
To become a millionaire, you want to mimic people who have already made millions or billions. And that’s exactly what we do in our advisory service, The Billionaires Portfolio.
We follow the world’s richest, best billionaire investors, and their stock picks. Did you broker or mutual fund buy Blackberry, RIMM, at $8 or better? We did.
Do you ever think your crowd following broker or mutual fund would ever have the guts to buy a stock near its 52 week low, that Wall Street had forgotten about? Of course not. But we did.
As an old hedge fund friend of mine said, a man who is in his 60′s and worth over a $100 million dollars (all self-made), there is no greater scam upon the public then the mutual fund industry or the brokerage industry. It’s the only business where you get paid even if you lose your customers money.
Our advisory service, The Billionaires Portfolio only buys stocks that can go up 2x, 3x … even 10x or more. And we only buy stocks owned by powerful billionaire investors. Why? They impose their will on the companies they buy. They control their own destiny. They control outcomes. We go along for the ride.
Okay, I did this yesterday. And I’m offering it again today. Because I know you need my service, and because I know when people join my service, they don’t leave, I’m happy to give it to you today with zero risk. If for some reason it doesn’t suit you, email me within the first month and we will refund your money in full. So go ahead and get on-board.
Yes I just said that. And you can quote me! If you want to get rich, do not buy Tesla, Facebook or even Gold. Instead buy stocks with no earnings if you want to make 50% a year.
Why would I say something so crazy, so diametrically opposed to broadly accepted theory?
Well, I like to keep things simple, and there is very simple logic behind my statement.
Here it is: The world richest man, Warren Buffett, followed that rule and did so for over 12-years when he ran his hedge fund, becoming one of the richest men in the world.
Don’t take my word for it. Read Buffett’s own words.
This excerpt from an old Businessweek article I’ve had filed away since living in my dorm room says it clearly. Here it is … Warren said, “If I was running $1 million today, or $10 million for that matter, I’d be fully invested. Anyone who says that size does not hurt investment performance, is selling.
The highest rates of return I’ve ever achieved were in the 1950s. I killed the Dow. You ought to see the numbers. But I was investing peanuts then. It’s a huge structural advantage not to have a lot of money. I think I could make you 50% a year on $1 million even $10 million. No, I know I could. I guarantee that.”
That is probably my favorite quote in the history of investing. Warren Buffett is saying that if you have less than $10 million to invest, then you should be earning 50% a year in the stock market.
How can Warren Buffett guarantee that he could make 50% a year, if he was investing less than $10 million dollars?
I’m going to tell you.
You may not know this, but Buffett ran a hedge fund in the 1950’s and 1960’s that was hugely successful. He beat the S&P 500 every single year for 12 straight years, and never had a losing year. He averaged around 50% a year in his hedge fund. But It was the size of the assets he was managing that ultimately suppressed his returns (which at 20% annualized are still among the best in history).
So how did Buffett hang a 50% number consistently when he was small. First, when he started investing, he used the classic deep value investing approach he was taught by Ben Graham. I am not going to go into Graham and his deep value investing strategy, there are 100’s of books on it and articles on the internet about it.
But what I will tell you is the way Buffett invested when he ran a small hedge fund, is a lot different than the way he invests today. Buffett, back in his early days, purchased deep value stocks that had asymmetrical risk-reward return scenarios. Let me say that again. He only bought stocks that had asymmetrical risk-reward.
What this means is that he purchased stocks that were so undervalued that they could easily go up 100%, 200% even 1000%. Yet the risk the downside to the stock was minimal or almost nothing.
How is that? The companies he invested in had tons of cash, zero debt, traded below book value, and a lot of times traded below their net cash level (meaning the company had more cash than its entire market cap).
This is the precisely same investing strategy I use in my advisory service, The Billionaire’s Portfolio, and for my own account. In our portfolio, right now, we own at least five stocks that are trading below book value, and have more cash on their balance sheet than the company’s entire market cap. Many of these stocks trade for as little as $2, but once sold for as high as $20.
I know the downside very clearly in these stocks. If they spend much time trading below their liquidation value or book value, or trade much below the cash they have on their balance sheet, a company or investor will step-in, acquire the company, sell all of the assets and pocket the proceeds.
In comparison, Google, Apple and Amazon have huge downside potential – big risk. We have seen how quickly Apple can shed 30% (in 7 months). Google and Amazon in 2007 and 2008 lost 40%. But here’s the big difference. Google, Apple and Amazon have very limited upside. Instead of getting 2x, 3x, even 10x of what you risk (like Buffet says) these blue chip tech stocks could pay you 25% or lose you 50%. I don’t know about you but that’s a bad trade to me.
Consider this: In The Billionaire’s Portfolio, we have a stock that sells $2.06, yet has $2.10 in cash per share and zero debt. The stock is selling for less than its net cash. Remember, net cash means cash minus all debt. So this stock is like buying a CD. It’s all cash. While this stock has NO earnings, it’s been selling assets, which unlocks value in the company. Let me be clear: I don’t care about the company. I just want the stock to go up. And selling assets can make the stock go up. In fact, in this case, with the game-plan that one of my favorite billionaire investors is executing with this company, I expect him to strong-arm this stock right back up to $10, where it was trading just a little over a year ago.
Remember not only do we follow Warren Buffett’s original hedge fund strategy, but we also follow many other Billionaire Hedge Fund Managers with track records just as good or better (50% annualized plus returns) who practice the same assymetrical risk reward type investing strategy.
So think about that risk reward, we own a stock in The Billionaires Portfolio, that has little or no downside but the upside is gives us a chance to make multiples of our money. That’s an investment that can make you rich. But I don’t just do it once. I do it over and over again.
Now, would you rather own a stock like that or Google, Amazon or Apple which you might make 30% on in a year best case, but you could lose 40% if you’re wrong, or the market sells off.
Let me tell you a story about a stock that my boss at the hedge fund I worked at purchased back in 2002. This stock which had no earnings but had $7 in cash and zero debt and sold for around $8, was a little company named Apple. As we all know Apple went on during the next 10 years to be the hottest stock of its generation. My boss by the way who purchased 1 million shares of Apple around $8, well he sold a little early, he sold back in 2007 when Apple hit $200, so he only made a profit of $192 million or 2400% (24 times his money).
So don’t take my word for it, believe my boss who made $100 plus million dollars buying a stock with no earnings, or better yet believe one of the world’s greatest investor, Warren Buffett, who told you that you should be making 50% a year if you have less than $10 million dollars — and the way to do this is to buy deeply undervalued stocks with no earnings.
Now, if you are not making at least 50% a year, and you have less than a $10 million dollar account, Warren Buffett and me, are telling you to fire your Stock Broker, Mutual Fund or any other person who is charging you money and not making you 50% a year.
By the way The Billionaires Portfolio is on pace to put up nearly 50% annualized this year. You need to own only stocks that can go up 2x, 3x … even 10x or more. Because I know you need this service, and because I know when people join this service, they don’t leave, I’m happy to give it to you today with zero risk. If for some reason it doesn’t suit you, email me within the first month and we will refund your money in full. I’ll make this offer today only, for newbies. Right now. So go ahead and get on-board.
You can sign up here… and if you are not satisfied with the service in the first 30 days just email us, call us and we will instantly give you a 100% money back, guaranteed, no questions asked.
As I told you yesterday, Apple is not a buy yet, this stock need to close above $446 to reverse its downtrend, and that’s my friendly reminder for today.
Lesson 2 on becoming a Millionaire
Leverage… That’s right you need to use some sort of leverage in your investing. Every single Billionaire Investor I have studied has used leverage to juice his returns, even the Great Warren Buffett.
Warren Buffett has historically leveraged his portfolio at 160% or 1.6X times his initial investment, I know this sounds complicated, but all this means is if Buffett invests $1 million dollars with leverage it becomes $1.6 Million dollars. I personally invest a $100,000 like $150,000 dollars, using 1.5 times leverage giving me 50% more buying power, and also juicing my returns by more than 50%. Leverage is what I call the real Billionaires Secret.
The recent news that Warren Buffett used leverage shocked a lot of people in the industry, (by the way if you want to read the articles on Buffett using leverage in his stock portfolio (just type in to google Warren Buffett and Leverage and it will pull up many articles including the Economist.com’s).
But I think a lot of people are shocked when they hear that the supposed conservative value investor, Warren Buffett uses leverage, but he does and thats why he beats the pants off mutual funds stock broker and the like.
Why is leverage so important in trading stocks because, if your just average, and you make 10% a year trading stocks in your portfolio, if you leverage your portfolio like Buffett at 1.6 times, you will then actually make 16% a year. And trust me that’s a huge difference when compounded over time.
The one problem with leverage is that most online brokerage firms charge you a very high rate, as high as 8% to trade on margin or use leverage, so at that borrowing rate its very expensive to leverage and probably not worth it. But there is one publicly traded online brokerage firm that only charges you 1.5% to borrow or leverage your stock account. This is the one I use and let me tell you its like getting free money, remember 1.5% is the interest rate they charge you to borrow for one year (its 1.5% for one year0. So if you buy and hold a stock for just 3 months you will only pay 50 basis points one half of one percent, that is virtually nothing. If you want to know the name of this online brokerage firm email me at wmeade@purealpharesearch.com.
Now another Billionaire who is a huge leverage buff is Steve Cohen of SAC Capital, Steve Cohen uses huge leverage up to 8 times or 800%. Again this means if you have a $100,000 account at 8 times leverage you now have an $800,000 account, and obviously your returns go up by 8 times, and you can now see why Mr. Cohen has been able to put up 80% gross annualized returns in his hedge fund for years. Remember even a small account, lets say $10,000 dollars, that returns 80% a year like Mr. Cohen’s hedge fund, would be worth $11 million dollars 12 years, you could basically retire on the beach in 12 years with $11 million dollars.. But here is the catch, Mr. Cohen is a big hedge fund and he can borrow tons of money for little or no cost.
So how does a small or retail investor leverage his stock account up to 8X and potentially return 80% a year well its easy, and I will tell you if you write me at wmeade@purealpharesearch.com
So in summary: Lesson 2, Leverage is the Billionaires and Millionaires Secret, you will never be a Millionaire or Billionaire if you do not use some type of leverage or margin.
I told you yesterday, that Apple will beat earnings and they did. I told you Apple would put their cash to work buy increasing their dividend and increasing their stock buyback they did. I told you the stock would get an initial pop, it did 6%. I told you not to buy the stock unless it went up 10% or more which it hasn’t yet. I told you not to buy the options, because if you did you would have lost all your money, because the options were too expensive and the stock did not move enough to move the options.
Now I am going to make you even more money by telling you to only buy Apple if the stock closes above $446, again do not buy Apple until the stock closes above $446. At a close above $446 we will know that the downward trend in Apple has been broken, and then only then is is safe to dip your toes in the water.
Next I want to tell you a couple of secrets that will make you a millionaire and heck possibly a Billionaire if your patient enough. so here they are get a pen and paper and jot these down I am only going to say these once:
1) You will never ever get rich investing in mutual funds, I promise you the only people who get rich in the mutual fund business are the people who run the funds, Fidelity, American Century, Pimco etc. Why because they don”t care about performance, all they care about is raising as much money as possible for their fund and collecting fees. If you don’t believe me just go to Morningstar.com or any other mutual fund website and look at the long term performance of the average mutual fund heck even the the top performing mutual funds they all stink… Over the last 15 years the average mutual fund has returned 5% a year. yes that’s right a paltry 5% a year.. You want to a free tip you can make 5% a year risk free by investing in treasury bonds, and you can sleep at night never having to worry about the stock market.. Also at 5% a year it would take you over 100 years for you to be able to retire as a millionaire. So please be wary of mutual funds, its probably the oldest and biggest pyramid scheme going.
2) To become a millionaire you must be invested in stocks for the long term. Warren Buffett and Carl Icahn two of the richest men in the world with net worth’s over $20 and $50 billion put almost their entire nest egg into stocks, and both men are well over 75 years old, these men are already extremely wealthy and should be playing it safe but they don’t they invest in stocks only. A good lesson right there.
3) To become a millionaire you want to mimic people who have already made millions or billions. and that’s exactly what we do in the Billionaires Portfolio we follow the world’s richest hedge funds and their stock picks. Did you broker or mutual fund buy Blackberry, RIMM, at $8 or better?, no but we did. Do you ever think your crowd following broker or mutual fund would ever have the guts to buy a stock near its 52 week low, that wall street had forgotten about? Of course not, but we did. As an old hedge fund friend of mine a man who is in his 60’s and worth over a $100 million dollars, all self made, once told me there is no greater scam put upon the public then the Mutual Fund Industry or the Brokerage industry. Its the only business where you get paid even if you lose your customer money, think about, I bet your broker and mutual fund took their full fees and commissions in 2008 when you lost half your retirement account, didn’t they!!!
Previously, on this blog, I told you to buy Coach May $50 call options before they reported earnings. Again, this is my secret stock replacement strategy. Well, I am happy to announce Coach blew out earnings this morning and the stock is up more than 12% already today. If you bought the May $50 Coach call options, you are up 200% today alone. And the options I talked about more than a week ago here at the bilionairesportfolio.com, those options are up 410%.
Now, I tell you this not to gloat, but to show you the power of information and great chart set ups. Here is how I developed this trade idea:
1) I tap into my network of contacts and did my research on some of the world’s best billionaire hedge funds. The latter is the most important step, and the basis of my service The Billionaires Portfolio.
2) After my initial due diligence, I look for great chart patterns. Remember from my previous blog post on Coach, I told you that I do a chart review every day to look for great trading setups. And I told you that I had found an unbelievable chart on Coach.
If you want to learn how to find these great trading setups and make some money along the way check out my website and service at billionairesportfolio.com.
Now, on to everyone’s favorite stock Apple ($AAPL) …
This is the same stock I have been telling you for the last two months to SELL! And I was dead right! Apple has declined by more than 20%, wiping out most of the day traders and option traders in this stock.
Here is a secret that most of you wont believe: I actually like Apple.
I use Apple products and I like the stock, but guess what … I hate the options. Why? Because the number one rule in options trading is this: Only buy cheap options.
And Apple’s options are always expensive. The volatility is always pumped up. So guess what? Even if your right about Apple, and you buy Apple call options, and Apple beats earnings, you still won’t make much if any money. Again, because the options are just too expensive. That is the secret/the tip you need to learn.
Apple’s options are too popular, too expensive even if you know the stock is going up or down. Trust me. Stay away from Apple options.
Now, on to Apple’s earnings …
I DO think Apple will beat earning expectations today. And Apple will also increase its dividend.
This should give the stock a nice one to three day pop of 10% or more. If this occurs, and only if this occurs, would I be a buyer of its stock, but not its options.
So in summary: Apple will beat earnings, will increase its dividend, and the stock will move up by more than 10% or more. If it does, Apple is a buy! And please don’t get burned trading Apple’s options. Just buy the stock instead.
As everyone knows who reads this blog, I use my exclusive database, research and network of contacts to find out what stocks these top billionaire investors and hedge funds are buying and selling.
I have received a lot of emails lately asking me why this is so important. And secondly, I’m asked how I built this extensive network of contacts at the top of the world’s investment industry?
Okay, so first … Why is this information important/why should you follow the lead of some the world’s top hedge funds? It’s a simple answer: they are almost always right and they have long records of generating huge returns. That’s good enough for me.
To put this in perspective, the top 1% of all hedge funds, in terms of performance, have averaged 43% a year over the last 13 years. Let me say that again … my database of the top 1% of all hedge funds in the world, show returns that have averaged a combined 43% a year over the last 13 years. A $20,000 account at 43% a year would be worth over $2 million dollars today!
Next … so how did I build up this extensive database, research process, and network of contacts, to know the holdings at the world’s top hedge funds? Through my 10 years of experience working for one of the top ranked billion dollar hedge funds (founded by a former Goldman Sachs Partner and Harvard MBA). Add to that, during my time in academia, I studied economics and did deep statistical studies on hedge fund returns at some of the most prestigious schools in the world, Johns Hopkins University and The University of Chicago.
So with that being said, here’s the takeaway:
First, the information on what the best, richest investors are buying and selling will make you money. And it will make you money when the stock market is going up and down.
Secondly, you know who I am. You know the source of this information. I started in the hedge fund industry almost 14 years ago, before most people knew what a hedge fund was. I’m not some journalist who has written articles his whole life or some kid out of college or grad school giving you his opinion without any real world experience. If that’s what your looking for you, back your way out of this website. It’s not for you. You can find that all over the web and your favorite financial TV show or rag.
So this is my friendly reminder about the power of my niche investing specialty. My subscription service, The Billionaire’s Portfolio, is the only service of its kind that gives the everyday retail investor access to the trading secrets and stock picks of the world’s best billionaire investors and hedge funds.
There is no other service out there which allows the everyday retail investor to participate in the stock picks of the world’s best billionaire hedge funds. Why? Because you typically need a minimum of $10 million to invest with a top billion dollar hedge fund, and hedge funds by law are not allowed to market or give out performance to the public. You have to be an accredited investor (which means you have to be rich).
My company, Pure Alpha Research, recommends hedge funds to family offices, funds of funds, endowments and super high net worth people.
If you’re worth more than $5 million, give me a call. If you’re NOT, check out my service for the average guy at billionairesportfolio.com.
I have to say there are not many articles from the mainstream media that are worth reading, but an article from Bill Singer, who is a guest contributor at Forbes, really caught my attention. This is one of the best written and most important articles you will ever read. I promise you, just spend 5 minutes of your life to read this article. It will change your life.
If you are a customer of JP Morgan Chase, Bank or America, Merrill Lynch, Morgan Stanley etc…, if you have a stock broker from any of the major banks or companies, you must read this article.
So Mr. Singer says what everyone in the industry knows, that is, your stockbroker and banker is stealing money from you everyday. Not only does a JP Morgan banker lift your money by charging super high fees to its customers, but in this case, a JP Morgan banker actually found a clients wallet that was lost in his bank and stole the money. He then used the credit card from the lost wallet. Wow, you can’t make this up. And you put your money with these people. You trust your kids money with these people.
But the most important point in the article is in the last paragraph:
“On modern-day Wall Street, there’s lots of what they call cross-selling: the guy at the bank is trying to sell you insurance and stocks; the gal at the brokerage firm is trying to get you to buy annuities and open a bank account at their affiliate.
So — be careful out there. When you walk by Citigroup, JP Morgan Chase, Wells Fargo, Bank of America, Morgan Stanley, what you see may not always be what you get. There are lots of strings and entanglements. Your stockbroker may be dipping into your bank accounts, and your banking playing around in your brokerage account — and, at times, no one seems to have a clue.”
Mr. Singer is absolutely right! I have told you on this blog before that your friendly neighborhood stock broker is not your friend. They charge you fees that you don’t even know about. They charge you commissions that are 10 times the industry standard. And some of them are illegally stealing your money without you even knowing out of your account. But yet you still put your money with these people, don’t you?
But why?
Consider this: These people get paid regardless of whether your account goes up or down. On the other hand, hedge funds only get paid if they make you money.
Think about that. Think about how those incentives differ.
Also, consider this: Stockbrokers are usually C students from mediocre schools, who have zero experience trading or doing real economic or equity research. They are salespeople … bottom line.
I know personally one of the highest producing stock brokers in the country. He works for Merrill Lynch and he/she has an associates degree from a community college. Do you think he/she could get a job at a fortune 500 company. The answer is no!!! But they can manage your precious retirement and kids money!!!
Think of good investing, like surgery. Would you want your brain surgeon to be a community college dropout? Or would you want a Harvard surgeon that has a proven record of achievement? I’m going with the latter.
The same approach should go with your money. Good investing, good money management takes work, skill, deep knowledge of finance, global economics, statistics and pschology … and a high level of integrity.
Perhaps most important though, the incentives have to be properly aligned to get the right outcome.
Stockbrokers charge as much as 5% in fees. Trust me on this. Many of these fees are hidden. That is $10,000 a year on a $200k account, regardless of whether you make money or not. And I guarantee you, most of them don’t know any more about investing than the average man on the street. Yet you still give them your money!
I charge you $299 a quarter and I let you piggyback off the world’s best and brightest Billionaire Hedge Fund Managers, people who graduated from Princeton, Yale, Harvard and Stanford. But here is the real difference, these people have become billionaires, not from skimming your account with fees, but from their own personal investing talents and trading. And guess what? I can tell you exactly what these genius ivy league billionaires are buying, so you get rich like them.
But no, you would rather get advice from a C student from a mediocre college who never made a dime trading or investing his own money. You don’t want to make triple digit returns and retire rich.. You want to make your friend, your stockbroker rich. Remember, he is sending his kids to college on your money! But your okay with that right?
So go ahead and be poor and have money siphoned out of your account by your “friendly neighborhood stockbroker.” You don’t want to know what the richest, smartest billionaire investors are buying at www.billionairesportfolio.com. No that would be too easy right? You would rather struggle, have your stockbroker and banker steal from you, and then blame the “crazy markets.”
As I have told you before I monitor the positions of all the major Billionaire Investors and Hedge Funds, and as I mentioned on this blog before back in February that the majority of these Billionaires were liquidating their positions in Gold, and in the Gold ETF ($GLD.)
Even the great George Soros, who is a huge Gold Bug, liquidated most of his Gold Positions late last year and in early January of 2013.
I personally have never been a fan of Gold, Gold does not pay a dividend and Gold over the last 50 years has averaged less than 2% annualized or less than a bank savings account.
But the important thing about this massive sell off in Gold is that everyone should have known this was coming, because the smart money, the billionaires tipped their hands by selling their Gold Positions early this year.. They were selling Gold, yet everyone was listening to the rhetoric about Gold being a safe haven currency, blah blah.. well now Gold has collapsed and people are sitting on huge losses. Not only realized and paper losses, but also opportunity cost losses and that is even more important.
So most Financial Planners, Stock Brokers and Investment Advisers had their clients in Gold, because lets be honest they all are sheep and they all practice group think, so all their clients have not only lost actual money on Gold this year, but they also did not have their money invested in stocks where they should have been invested, and that is the so called opportunity cost. Basically people who owned Gold this year are not only down 14% in their Gold ETF, but they are really down 25%, because they would have had their money in stocks and the stock market has increased by more than 11% this year alone.
So again if you own Gold or are thinking about buying Gold please read my partners blog post and Big Picture Piece on Gold, it could literally save your retirement.
Here is my post, where I told you the secrets of how traders at hedge fund make billions of dollars using a secret trading strategy called the stock replacement strategy. This secret stock replacement strategy uses deep in the money options to replace buying the stock. I told you that this strategy will make you buckets of money and it did.
on this blog where I told you to buy Sprint May Call Options, that were deep in the money, and that you should buy the Sprint ($S) May $6 call options for just$.20 cents, because these options were trading almmost flat with Sprint Stock, meaning the option and the stock move almost one for one with each other.
So i wake up this morning and on the front cover of every newspaper and financial website is the news that Dish Network offers to acquire Sprint for a huge premium, Sprint is currently trading at $7.24 and the May Call Options I told you to buy are now trading at $1.33, up an incredible 560% from where I told you to buy them in my previous blog post.
Folks I told you to buy these Sprint May Call Options at $.20 cents, less than a month later these same sprint options are now up more than 560% to a $1.33 are you kidding me!!!. That means even if you only purchased 10 calls for just $200, you would now have over $1300 dollars in your bank account, that means I made you a $1100 off an initial investment of $200.
Even better some people wrote me that they had purchased 50 Sprint May call options for a $1000 and now they have over $65oo in their bank account. Enough to take their family on a fantastic summer trip to Europe, to NYC or the Hamptons. Why because I made them over $5500 in profits in less than a month.
And how did I know to buy Sprint May Call Options, first like I always told you I use my contacts and on Wall Street and at Hedge Funds to monitor what Billionaire Hedge Funds and Investors are buying, (thats why its called the Billionaires Portfolio) and they were buying tons of Sprint Stock, and secondly and just as important I have stressed the importance of great chart patterns and Sprint had just broken out of a long sideways consolidation pattern called a upside rectangle chart pattern, which 99% of the time predicts a big movement in the stock… why?
Because when a stock consolidates for months volatilty drops and the options get cheaper,, aka. sprint which had deep in the money call options for just .$20 cents, and volatility always reverts to the mean, meaning I knew that since volatility had been so low in Sprint, volatility had to go up.. and it did big time, with Sprint being acquired by Dish Networks today for a huge premium.
Folks its a simple formula, you use my secret stock options replacement strategy, you find great chart patterns and you find out what the Billionaire Investors and Hedge Funds are buying and then you become a millionaire…
p.s. thank you for all your emails, I have recieved 100’s and 100s and I really appreciate it keep them coming at wmeade@purealpharesearch.com and I promise I will try and answer every one it will just take me some time. Also I would love to hear from you if you made money buying the Sprint May Call Options that I told you about on this blog last month at wmeade@purealpharesearch.com
I have written a lot lately on this blog about my secret stock replacement strategy. I want to expand on this technique by showing you how I have made $1000 a day using this strategy. As you remember the secret stock replacement strategy is buying deep in the money call and put options to replace buying the actual stock. The advantage of using options is that gives you free juiced leverage 10 to 20 times, with limited downside and low capital requirements (you only have to put 1/10 or 1/20 of the amount compared to buying the actual stock).
And this secret stock replacement strategy allows you to trade with an account as little as $5000 to make a $1000 a day swing trading and day trading stocks.
This honestly is one of the most exciting methods I have ever found to make a living trading in the market, I have personally made on several occasions $2000 or more in a day using this technique and at the time I was only trading a $5000 account!!!
The key to this strategy is to find highly volatile, liquid stocks that have options with high trading volume so that you have a very small spread when you buy the option. What this means is when you are day trading or swing trading stock options, you only want to buy puts and calls that have very tight spreads, (the spread is the difference between the bid and ask). You want the spread to be pennies.
Next, you need to understand that in the short term (anywhere from 1 to 5 days) price action, money flows and technicals drive 95% of the stock price in the short term. So you need to know what chart patterns work in the short term and luckily there are a few great ones that work almost all of the time.
Lastly, you need to use my secret stock replacement technique, that is only buy options that are deep deep in the money, so that the option moves almost one for one with the stock.
So to use this secret stock replacement tecnique of day trading swing trading options you need the follow these rules every time:
1) Only trade stocks that have options that are very liquid with high volume, so that you when you buy the put or call the spread is very low, (it should be pennies) so that you are not paying a big premium on every trade.
2) Only trade volatile stocks with great short term chart patterns. Like the one I found in Coach ($COH).
3) And most importantly, you want to use my secret stock replacement strategy of only buying deep in the money calls and puts, in which the options moves almost one for one with the stock.
