A Goat or a Rockstar?

Matchless Silver Mine

The Matchless Mine in Leadville, Colorado.

Adam O'DellOn top of the world

It ended up being our best trade ever.

We banked a 225% profit in two months, turning $5,000 into $16,250.

That’s $11,250 in cold-cash profits.

And it came from the most unlikely of sources… a left-for-dead silver miner that no one on Wall Street would touch with a 10-foot pole.

It might seem strange that such an awful company could hand us the biggest single-trade profit we’ve booked in Cycle 9 Alert’s five-year history. But in reality, my system has delivered a total of 43 double-digit profits and 17 triple-digit profits since 2012… from all kinds of unlikely sources.

So today I want to show you how my Cycle 9 Alert system does it by sharing the story of the overlooked, silver miner money-maker…

I’ll start by showing you the email a colleague sent me, on February 16 – the day I told Cycle 9 readers to buy that silver miner.

“You’ll either be a rockstar or a goat after this trade!”

Clearly he thought I was crazy!

The trade was on Pan American Silver Corp. (Nasdaq: PAAS), which had been taking a beating in the market for months. To everyone else, it looked like the riskiest bet to make.

The system that tells you when to buy and sell

The company has suffered declining revenues and earnings for four straight years… leading to a net $1.4 billion in losses.

Despite all that, on February 16, my Cycle 9 Alert system triggered a buy alert – a GO signal – on Pan American’s stock. And two months later, I told Cycle 9 Alert readers to book their profits – $11,250 on a $5,000 investment.

But here’s the thing…

To me, the Pan American trade makes me neither a goat nor a rockstar.

Sure, it’s exciting when we hit on a great trade. I mean, it’s hard not to feel the thrill of growing money by 85%… 135%… 165%… and 225%… on a single trade (those are actual gains we’ve made of many, many others).

But I care most about Cycle 9 Alert’s average trade and lasting success.

You see, not all trades work out as nicely as Pan American. We hit on some duds and take our losses from time to time. So the excitement of locking in an $11,250 profit has to be balanced with the sting of losing $2,500… or $5,000… on a single trade.

Pssst… I’ll let you in on a little secret…

It’s not the single-trade profits, or losses, that matter.

What truly matters, if you care about lasting success over many years, is your investment strategy’s long-run averages.

On average… how often do you profit?

On average… how much profit do you make on each trade?

On average… how long does it take to make that profit?

It’s all well and good that Cycle 9 Alert readers made a 225% profit in two months from Pan American. But even though we’ve locked in 60 double- and triple-digit gains over the last five years, you can’t expect a 225% Pan American profit on every trade!

That’s why you should judge a strategy’s long-run averages, instead of getting excited about any one trade.

And this is what makes me so proud of Cycle 9 Alert

Yes, that was 225% in two months

Since 2012, I’ve had the pleasure of sharing my time-tested (literally, I back-tested over a 15-year period) investment strategy with hundreds of Cycle 9 Alert readers… helping them achieve lasting success – five years running, at least!

I’ve shared with them nearly 100 investment recommendations…

We don’t win ‘em all… but my system has a long-run success rate of 68%. That means we’ve locked in about seven winners out of every 10 trades.

The average profit generated by of each of those 100 trades?

32%!

That means for every $10,000 invested in a Cycle 9 Alert trade, readers had the chance to walk away with $13,200 ($3,200 in pure profits, plus their initial $10,000 investment).

And it’s taken an average of 69 days – about two months – to lock in these profits.

Also, we’ve achieved these results since 2012, despite a number of volatile market shifts… a waning global economy… and continued bouts of corporate and geopolitical turmoil.

In part, that’s because my Cycle 9 Alert system found these money-makers in some of the most overlooked and unlikely sources – a tractor maker, a Canadian bank, a foreign oil producer, a grocery-store chain, a steel-maker…

And yes… my system found a serious money-maker in the little mining company called Pan American Silver Corp. – the trade that was supposed to make me either a goat, or a rockstar.

To good profits,
Adam_Sig

 

 

 

Adam O’Dell, CMT

Chief Investment Strategist, Dent Research

P.S. Far too many investors suck wind because they’re in search of those one-off, big winners instead of looking for a system that produces the best average results over time, no matter the market. So I’m recording a webinar to really drive home the difference between those two approaches… to help you step out of the crowd of frustrated wind-suckers and into the warmth of investment success. Please join me on Thursday, August 18 at 4 p.m. Eastern Time. This webinar is by invitation only.

Categories: Investing

About Author

Adam O'Dell has one purpose in mind: to find and bring to subscribers investment opportunities that return the maximum profit with the minimum risk. Adam has worked as a Prop Trader for a spot Forex firm. While there, he learned the fundamentals of trading in the world’s largest market. He excelled at trading the volatile currency markets by seeking out low-risk entry points for trades with high profit potential. An MBA graduate and Affiliate Member of the Market Technicians Association, Adam is a lifelong student of the markets. He is editor of our hugely successful trading service, Cycle 9 Alert.