One of the most important messages we seek to relay to every member of The Midas Legacy is that making money in the financial markets is NOT complicated.
All it takes is finding a system that works (luckily, we have several) and following it like a robot.
But that’s not nearly enough for us or our members.
Once you see how easy it is to make money trading and investing, you can use this simple trick to triple your profits over and over again…
One of our favorite traders and investors of all time is Nicolas Darvas, a self-taught investor who started his speculating career while dancing was his profession.
In less than two years, Darvas used his own trading technique to make nearly $2.5 million in the 1957-58 bull market!
Now, I could go into great detail about Darvas’ methods and secrets, but all you really need to know to make a ton of money in the financial markets is by using his one simple trick to tripling profits and turning an Average Joe into a wealthy man.
In essence, Darvas would go against human emotions.
You see, most people want to manage the upside of a trade and let the downside take care of itself. It’s a matter of greed and fear.
Think about it – you open a trade at $100.
If the stock you’re trading then jumps to $110, what do you want to do? You see the money sitting there in your account…a nice 10% gain on your money! You want to take it, right? All you have to do is close the position and that cash is in your pocket.
On the opposite end, let’s say that trade you made immediately fell to $95 a share. What now? That money you put down on the trade is now shrinking. You don’t want to close out a trade and take the loss, do you? A trade is never over until it’s closed out, right?
Here’s what normally happens:
In the scenario where your trade jumped 10% right away, the stock eventually climbed all the way to $150 per share, so you missed out on another 40% of potential profits.
In the scenario where your trade fell 5% right away, the stock eventually fell all the way down to $50 per share, cutting your money in half!
Instead, use Darvas’ secret: Manage the downside and add to winning positions.
The managing of the downside is easy – use a stop loss that automatically closes your position if it falls to a certain price or by a particular percentage.
Adding to the upside, I can tell you from experience, is a much bigger battle with your own emotions…
But what if it goes down now?
That’s the question you’ll constantly ask yourself every time you should be adding more to the trade.
You see, what Darvas found, and what our trading systems teach, is that stocks move in patterns most of the time. Whether it’s a box or a trend line, there are almost always multiple points during the lifespan of a good trade to get in again.
It’s at these times that adding to your position will significantly increase the profits you walk away with at the end of the trade.
This secret made Darvas a millionaire, and it can certainly triple your profits starting now.