"Investors" and "Traders" Most of the people Doug advises are investors. And most of the investments he recommends he expects people to hold on to for a long time. Often two to three years. Sometimes longer. These are low-risk, solid investments.
Doug has built his reputation and a strong track record finding investments just like these for his readers. And both he and his subscribers have made quite a bit of money. But there's another class of people who play the markets - traders. These are the people who don't mind taking a little more risk for a potentially higher reward.
Doug is both a trader and an investor at heart. And a large part of his fortune was made on stocks that are not suitable - let me repeat that - not suitable for the bulk of people following his advice. Why?
Because the typical trade opportunity comes and goes very quickly. others trade very thinly - they have small market caps and can go up or down dramatically in a very short period of time. These aren't necessarily buy-and-hold style investments.
When these companies become more firmly established, Doug feels comfortable recommending them to more cautious investors. But early on, the opportunity tends to be a bigger gamble. Faster moving. Highly speculative. Very time-sensitive.
Take the DFR trade that doubled returns in 3 days. Traders had to move fast to cash in. Here's another example. Two, in fact:
Two Companies That Made Millionaires - And History By now you must have heard the sensational story of scandal and political intrigue surrounding the tarnished Canadian junior mining company, Bre-X, and its mysteriously nonexistent Busang gold deposit in Indonesia.
The story made headlines in practically every financial magazine and newspaper including The Wall Street Journal, and was featured on CNN's Moneyline.
And why not? With so-called "find-of-the-century" gold deposits disappearing overnight. The chief geologist plunging 800 feet to his death from a helicopter traveling over the Indonesian jungle, amid rumors of falsified data and tampering with samples. The story had all the makings of a Hollywood screenplay.
Did all of this matter to Doug's subscribers? Not one bit! Doug gave the sell signal at just about the very peak! After selling on Doug's advice back in June of '96 and collecting an unbelievable 10,060% gain, his subscribers weren't too interested in Bre-X anymore.
Then there were the gains you could have made on Bresea Resources. Bresea owned 24% of Bre-X, so immediately after Bre-X shares shot up, so did Bresea's from $5 to a high of $57, a gain of 1,040%, and that was before an unbelievable 10 for 1 stock split.
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