Take a second to think about your last sizable profit—it could be from a sale, an investment, or a gamble. Now magnify that profit by 670% and picture that cash in your pocket immediately.
That’d be the dream, wouldn’t it? Wake up! It’s a tangible reality.
This simple trick expands my profits by at least 670% every time, and I’m willing to share it with you if you’re willing to let me have just two minutes of your time…
I think we can all agree that profits are great and losses are bad. At least I hope we can agree on that.
Another thing I would like us to see eye to eye on is that profits are great and losses are inevitable. But that doesn’t mean that your losses should have significant impact on your profits.
Let’s look at it like this:
You have 10 apples on your counter and 6 of them are beginning to rot. We all know how contagious the rotting process can be to other fruits in the vicinity.
If you let those rotting apples sit there in the same bowl with the perfectly intact apples, then very soon you’ll have 10 rotten apples. No good.
If you remove those 6 rotting apples at the first bad sign, then you’ll be eating an apple a day for the next 4 days.
The action of moving those rotten apples can be applied to the stocks in your portfolio that ceaselessly pull your profits to unbearable lows.
I’ll give you a before and after scenario that I experienced first-hand.
I found a journal of mine the other day that I logged all my trades in when I was still fairly new to the stock market. It read:
Trade 1: Win – 23%
Trade 2: Loss – 12%
Trade 3: Loss – 26%
Trade 4: Win – 50%
Trade 5: Loss – 18%
Trade 6: Loss – 30%
Trade 7: Win – 24%
Trade 8: Loss – 23%
Trade 9: Win – 41%
Trade 10: Loss – 15%
——————————
Total Profit: 14%
As you can see, this is a profit and I was ecstatic about it at the time, but I can’t help but think about this one little trick that could have magnified those profits by 670%.
Right underneath this table in my journal I drew a new one. The difference this time is that I cut down all my losses to 5%. Take a look:
Trade 1: Win – 23%
Trade 2: Loss – 5%
Trade 3: Loss – 5%
Trade 4: Win – 50%
Trade 5: Loss – 5%
Trade 6: Loss – 5%
Trade 7: Win – 24%
Trade 8: Loss – 5%
Trade 9: Win – 41%
Trade 10: Loss – 5%
——————————
Total Profit: 108%
Which profit sounds more appealing to you: 14% or 108%? I think I’ve got your attention.
That 108% profit is a 671% increase from my original 14%. If I used this trick for every trade I’ve ever done I’d be writing this article from my very own island right now.
The trick I’m talking about is the stop loss.
Those of you who get our Midas Wave Alerts will be familiar with stop losses as we include one with every trade recommendation.
It’s sort of like an insurance plan that pays for itself. It ensures that your stocks will be sold at no more than a 5% loss.
When those stocks start rising, make sure that your stop loss does too in order to lock in profits.
This is a tool that I have been utilizing for years and it has saved my losses while increasing my profits by 670% and more.
