Trading For Big Profits With Low Risk

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Where Can You Turn $300 Into $1.3 Million Right Now?

Our own small-company specialist, Robert Morris, has found a way to 'sniff out' tiny penny stocks on the verge of a major breakout.  And the timing for this has never been better.

You see, the system takes advantage of an obscure SEC regulation that sends penny stock prices through the roof.

We've seen some stocks gain 852%... 5,450%... even 17,496% in no time flat.

Click here for the details...
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The point is, trading stocks doesn’t have to be like skiing off a cliff.

In trading, it doesn’t have to be an all or nothing affair.  You can control your downside risk.  Professional traders do it, and you can too.

Here’s an easy risk management strategy the pros use all the time.

Before you place a trade, do these three things first.  Plan the entry point for your trade.  Plan the price where you’ll exit the trade if you’re wrong (some traders use a stop loss).  Plan the price where you’ll take your profits.

Let me show you what I mean…


This is the chart for Coeur D’ Alene Mines (CDE).  CDE owns and operates gold and silver mines in South America, the United States, Australia, and Mexico.  Last year they generated $189 million in revenue.

Notice the green line.  This line is the $10.50 price support zone for CDE.  You know this because CDE has bounced off the $10.50 level twice in the last three months.  Now look at the green circle.  That’s where we’d enter a trade.

What’s so special about this area?

This is the point where your downside risk is very low.  If CDE breaks below $10.50 and proceeds below $10.00, you know your trade didn’t work out.  In other words, the stock need only drop a little more than 50 cents for you to know the trade won’t work.

So where would you exit if the trade goes against you?

I’d exit this trade at $9.90.  You never want to exit at a whole number like $10.  Many times a stock will bounce off a whole number and head higher.  By placing your exit slightly below the whole number, you’ll avoid getting whipsawed.

One way to exit is with a stop loss order.  You can set this with your broker.  Or you can use a mental stop.  Just watch the stock and sell when it hits your exit price.

Now, look what happened…

CDE went on a 52% upside tear all the way to $16.  That’s a good place to take profits because the stock has strong resistance there.  If you had put $5,000 into that trade, you could have pocketed a quick $2,600 profit.  Not a bad monthly return.

But here’s the real kicker…

You made a profit nine times greater than the amount you risked. Our risk was only 60 cents (because of the stop loss).  The stock jumped $5.50 from our entry price.  That’s a risk reward ratio of 1 to 9.  That’s what I call a fantastic trade.

Here’s a secret…

Experienced traders who’ve been around the block track performance by the amount they risk.  Not by the amount they invest!

The key to racking up big returns is controlling your downside risk. Smart trading is not like skiing off a cliff and hoping for the best. It’s all about keeping the risks small and capturing the big rewards.

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