And Friday was another reminder of this when I spoke to Jim Samson, Publisher of The Midas Legacy, about his trade that doubled on a tiny 4% move…
Here’s his secret to cashing in big on tiny price changes:At the very end of April, Jim opened a trade on Altria Group (MO) when it was at $50 even. A week later, MO climbed up just $2 to $52, which is a gain of 4%, yet Jim doubled his money.
So how was he able to get such a large return on such a small price swing?
Well, Jim has 3 secrets that allow him to do so over and over again…
His first secret is the wise use of options trading. Now, options trading often gets a bad reputation from people who struggle with it and end up losing large percentages of their trades at a time.
And yes, this type of trading raises both the potential reward and the potential risk quite significantly. So if you get an options trade wrong, it could wipe out 25%, 50%, or more of your trade.
However, if you get it right (as Jim did with his MO trade), options trading could easily earn you a 50%, 100%, or even larger returns!
And that brings us to Jim’s 2nd secret—timing.
With options, timing is even more important than normal trading on Wall Street. If you use an options trade on a stock, your trade could lose value even if the stock remains the same prices for several days.
You need a quick change in price to see good gains—even if that change is as small as 2-4%. Remember, Jim was able to double his cash on a tiny 4% move!
And then comes Jim’s 3rd (and most important) secret—how he hits that timing perfectly.
That secret, however, isn’t one I’m allowed to share just yet. But it IS revealed in Code Breaker, so check your email for a special invitation…