Editor’s note: With our offices closed for the holidays, we’re sharing Jason’s absolute best essays of the year. Stay tuned to your inbox through the end of 2020 for Jason’s moneymaking insights – all through the lens of big money. And be sure to check in during the final days of the year, where Jason will share his reflections on 2020… and what he sees ahead for 2021.
According to lore, Joe Kennedy built his family’s fortune by bootlegging.
Most historians say this isn’t true, although he did start a liquor-importing business.
What’s closer to the truth is that JFK’s dear old dad actually built the family fortune through a different illicit activity: insider trading.
In 1919, Joe Kennedy joined a brokerage firm and quickly became an expert in the then-unregulated stock market. He got rich using tactics that are now considered insider trading and market manipulation.
For example, he bribed reporters to spread false stories to drive prices up for his investment pool.
He also participated in organized “bear raids” to crush stock prices. A bear raid is when a group of short sellers collude to sell a stock, smear the company, and then profit when the share price falls.
And legend has it that in 1929, Kennedy got out of the crazed, speculation-fueled market when he got a stock tip from a shoeshine boy. He then heavily shorted the market before the Great Depression and made a $4 million fortune – worth about $60 million today.
You’d think he would’ve been punished for all this… Instead, he was rewarded.
President Franklin D. Roosevelt appointed Kennedy to the newly created Securities and Exchange Commission (SEC) in 1934. Not long after, Kennedy was named the SEC’s first chairman.
When asked why he did it, FDR supposedly said, “It takes a thief to catch a thief.”
Kennedy then went on to outlaw the very practices that made him rich.
One thing I learned from Kennedy – and from studying the history of the stock market – is that the best way to profit as a trader is to follow where the big money goes.
And if you really want to boost your retirement nest egg, I’ll share a simple strategy you can use to supercharge your big-money gains.
Wall Street’s Secret Tactic
During my Wall Street trader days, I handled massive orders from big institutional clients and billion-dollar hedge funds. And when they take a position in a company, they buy millions and millions of shares. That lifts the share price higher and higher.
Like Kennedy, some people in dark rooms on Wall Street know about these huge trades in advance and profit from them. It’s just a fact.
But if you’re experienced and watch carefully, you can detect the early signals when institutions begin their buying.
These massive orders that I’ve handled throughout my career taught me how to recognize such giant trades.
So I created a proprietary system to track them.
You see, there’s a key difference between when big institutions buy stock and when you and I buy stock.
When you and I want to buy stock, we open our brokerage accounts, click buy, and move on with our day. The entire process takes only a minute or two… But when big players want to buy 50 million shares, they have to do so over several days.
On the first day, they’ll rush to grab a chunk of stock because they know they’ll move the price higher. They try to “frontload” their orders in the beginning to get better prices.
When this type of buying begins, you can jump in while the “big whales” continue buying for days, lifting the stock higher.
Now, this may sound like the type of frontrunning Joe Kennedy practiced. Frontrunning is a very effective and predictable way to make money. It’s also illegal and dishonest.
But my system can give us a legitimate “heads up” when big money is buying stocks. I designed it to find them – before everyone else catches on – and then ride them to profits.
More importantly, you can supersize those profits with a simple strategy…
A Simple Way to Supercharge Big-Money Gains
Regular readers know my system looks at buying versus selling and creates a ratio between the two.
In my PBT service, we’ve taken advantage of big-money buying to recommend winners like The Trade Desk (TTD), SolarEdge Technologies (SEDG), and Paycom Software (PAYC). As of this writing, those are up 910%, 370%, and 309%, respectively.
Now, those are incredible gains in a short period. But what if I told you there was a way to supercharge those gains in days or weeks?
You may know I worked for Cantor Fitzgerald, one of the largest financial firms in the world, for over a decade, handling tens of billions of dollars’ worth of trades. My team and I made Cantor a lot of money.
We could never have done as well as we did without options.
I was in charge of options trading for Cantor Fitzgerald’s North American operations. So I know firsthand how lucrative they can be.
You see, options give you “leverage.” They allow you to turn a small grubstake into a huge windfall – often a much bigger windfall than you could have made with stocks.
For example, if we had bought certain options on TTD, SEDG, and PAYC, we could’ve made 3,207%, 1,331%, and 2,170% gains, respectively, in a fraction of the time.
With options, you can juice even higher returns from the stocks that big money is buying. They’re a dream come true for anyone looking to fast-track their retirement.
Now, options are riskier than buying underlying stock… But they can offer explosive returns…
So if you want to supercharge your gains, consider trading options on high-quality stocks that big money is buying.
Patience and process!
Editor, Palm Beach Insider
P.S. Options are a risky way to big gains, but there’s a much more surefire way to skyrocket your account.
It all has to do with my unbeatable stock-picking system. My time at Cantor gave me the knowledge and insight to create this proprietary system, and it’s been refined and perfected over time to identify the few elite stocks from a batch of thousands.
My Palm Beach Trader subscribers have seen my system give us gains as high as 910%, and we have a current 81%-win rate, with an expected average return of 114%. That’s around 10x the 10-year average return of the S&P…
To learn how your account can do the same, just click here.