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Rediff.com  » Business » Meet the hottest commodity trader

Meet the hottest commodity trader

By Alex Williams/Commodity Online
December 14, 2007 15:55 IST
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His name is Lee Lowell -- and he's one of those rare men in the investing world. He's not about flash. He doesn't drive a fancy car or wear $2,000 suits.

He's not about climbing the ladder at any of those hotshot trading firms (though any firm would be glad to have him).

All Lee had ever done up until his "retirement" at age 31 was trade for profit -- either with his own cash or for the company that entrusted him with millions in trading dollars. And for a professional trader, nothing can top the experience of being right down there "in the pit" where all the action is, six hours a day… where one facial expression can lead a seasoned trader to huge profits… and one mistake can cost tens of thousands, even millions, of dollars.

But as important as making money has been to his success and survival, so has not losing money. That's why, when you're risking millions of dollars on a trade, you better have a strategy that will virtually assure winning. Otherwise, your days on the trading floor -- indeed, your days as a trader -- will be very brief.

Lee has proven himself through every step of his highly successful career.

At 25, his firm was so impressed by his trading skills after just one year as a wet-behind-the-ears options clerk, he was promoted to occupy one of 816 cherished seats on the trading floor of the New York Mercantile Exchange and entrusted with millions of dollars in trading funds.

A year later, he became a market maker for his firm. Market makers are the cream of the crop: savvy, senior traders who establish both the sell and the buy price of a trading instrument with the goal of making money off the spread.

As you'll discover in a moment, it's this experience that formed the foundation of the strategy that he's now turned into a carefully crafted publication. And through this letter, he's helping readers learn how to extract thousands in routine profits from the markets with every recommendation he makes.

In all, he spent six years as a floor trader and market maker making huge profits for his firm and himself. At age 31 he left the NYMEX trading floor -- packed up and "retired" to Hawaii to recharge his batteries, regain his sanity… and to embark on his next challenge: Mastering the art of commodity chart analysis and electronic screen trading research and distilling that information into an easy to read format for his readers.

The Evolution of a Master Trader

It was a plan Lee had in mind since he entered the commodities world as an options clerk back in 1991. What, after all, could be more potent from a pure moneymaking standpoint than a trader who had mastered the art of directional trading…

And knew first-hand how trading on the floor worked

And who still had many friends on the floor he could call. (Even today he remains very much a part of the "floor trader fraternity." He still talks to people on the floor virtually everyday… keeping him abreast of "the buzz"… knowing where the money is moving at any given hour.)

And who had a passion for showing ordinary investors that it really wasn't that hard to do after all…

So, on the remote island of Kauai overlooking the azure blue Pacific Ocean, Lee began building his editorial voice along with his screen-trading strategy from the ground up -- a strategy that would eventually lead to the steady stream of double- and triple-digit winners for subscribers to his exciting new trading research service, The Triple-Zone Profit Trader.

With his strategy perfected in late 2003, he began experimenting with it, using his own cash, amassing the incredible "73-wins-in-87-trades" track record I mentioned earlier.

Now, with The Triple-Zone™ Profit Trader humming like a fine-tuned racecar -- and 16 wins out of 19 plays under its belt in the past 12 months -- you have a very unique and rare opportunity to learn from one of the master commodities gurus of our time…

and watch your portfolio grow month by month as you experience the indescribable thrill of closing out one winning play after another.

But you'd better buckle up. As you've seen, the profits can come fast and often…

The Secret of 'Triple Zone' Profits

How can one man generate such substantial gains in better than 84 per cent of the picks he made over the past year – while most traders struggle to win one in three?

One of the secrets rests in a little-known trading tool that gives professional investors a very powerful edge over everyone else…

It really is amazing

When Lee told me about it, I was shocked that such a thing even existed. But it's instrumental in his phenomenal overall 84 per cent win rate -- and rarely does he recommend a play without it.

It's called a "probability calculator." Lee punches a bunch of numbers into it, and it determines the chances, in precise percentage terms, of a commodity falling below -- or moving above -- a certain price within a certain period of time.

How incredible is that?

Imagine for a moment you're a stock trader, and there was a secret formula that told you when IBM had an 80 per cent chance of falling below $100 a share in the next three weeks? What kind of trade could you put together? And how rich would you be if 80 per cent of the time the prediction came true?

You probably wouldn't have to work another day in your life!

Of course there's no such formula for stocks -- their price movements are too erratic -- too unpredictable -- and can be influenced by too many outside factors.

But because commodities move in a much more predictable manner than stocks, such a tool can… and does… exist. Even so, not everyone can use it. You need to be able to read the charts… see the trends developing… and know what numbers to punch in.

But in skilled hands, it's a powerful tool -- and one big reason why every play Lee initiates has such an excellent chance of producing steady, fast profits for his Triple-Zone™ Profit Trader subscribers.

And Lee has one rule: So long as a situation arises where the "probability" of a specific move is 80 per cent or higher… there's a great pick in the making.

Earlier this year, silver was in a major up trend. But some heavy selling had brought the price down from a recent high of $14 an ounce to what Lee's chart analysis determined to be a key support level of $12.50 an ounce.

On paper, it appeared silver was due for a rebound. But rather than recommend a play that would only produce a profit if silver moved higher, he put together a play that would allow his subscribers to potentially gain whether silver moved higher or lower or didn't move at all.

So here's what he did. He punched some key numbers into his "probability calculator" and discovered there was an 88.7 per cent chance silver would not fall another $1.50. In other words, his calculations showed there was nearly a 9-out-of-10-probability silver would not fall to $11 an ounce.

So he put together a play that would reward his Triple-Zone™ Profit Trader subscribers with a tidy gain so long as silver traded anywhere above $11 an ounce. What's more, he structured a play where the market paid out $1,350 for every 10 positions taken. The only obligation participating subscribers had was to keep enough cash in their personal trading accounts to meet the margin requirements in the off chance silver fell below $11 an ounce.

Sure enough, silver rebounded higher, never coming close to the $11 mark. Subscribers who followed the trade recommendation had the chance to keep the $1,350 the market paid out -- a nice 111 per cent gain based on the margin required for participating subscribers who chose to execute the trade.

Courtesy: www.investmentu.com

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