This Simple, Powerful Trading Tactic Could Yield Double-Digit Gains Every Time You Use It

I’m often asked during presentations around the world for my favorite money-making tip, and without fail I come back to the same one every time.

It’s one of the simplest, yet most powerful wealth-building tactics available to individual investors today.

Plus, it’s a great equalizer. It lets you take away the advantage normally enjoyed by Wall Street’s biggest, most ruthless traders. And, in the process, buy the stocks you want at exactly the price you want to pay.

We’ve talked about this tactic before. But now, with the markets dancing around new highs and the Fed making noises about a rate hike in December, I think it’s a great time to revisit the subject.

I believe you will be thrilled by how easy it is to use, especially when you understand that you don’t have to sit in front of your computer screen all day to bank the kind of profit potential most people only dream about.

In short, it’ll help you master the markets. Let’s get started…

Lowball Orders: Effective and Simple

The tactic I’m talking about is the lowball order.

There are three reasons to love it:

You can place lowball orders in advance.

You don’t have to be at your computer to lock in profit potential.

You control risk by buying only when the stocks you want are trading at exactly the price you want to pay.

Lowball orders are technically “limit” orders. That’s Wall Street-speak for an order to buy or sell shares at a specific price or better. Unlike “market” orders, which go into effect the moment you place them, limit orders trigger only when prices reach the limits you’ve specified.

So, for example, Apple Inc. (Nasdaq: AAPL) is trading at roughly $120 a share right now, but you think $110 is what you’d like to pay. Obviously nobody knows whether the stock will drop to those levels. But that shouldn’t stop you from preparing for the possibility.

The point of a lowball order is to pay the price you want. Whether that happens today, tomorrow, or six months from now is moot. To paraphrase my grandfather, who played baseball in the 1920s, you miss 100% of the swings you never take.

Lowball orders help you prepare in advance for conditions that favor your money. Placing them doesn’t cost you a thing, and you’re not risking one red cent until the order executes and you’re off to the races.