The $2,000-to-$1,000,000 Sequential Recovery Trade is a strategy to get back all of your retirement funds starting with a very low investment. It fits especially well with a strategy of keeping a large percentage of your retirement money in high-yield situations, and putting a small amount in more aggressive situations.

What I will try to do is pick four or five straight big winners. You start with only $2,000 in the first stock, and when and if that works out, you roll the profits into the second stock, then the third, then the fourth, then the fifth. At the end, you bank $1,000,000 – preferably in a non-taxable retirement or educational account.
Let me tell you the negatives first.

The big risk is that I am wrong on one of the trades – getting four or five straight trades right is not easy. One “miss” won’t wipe us out, but it will make it impossible to get to $1,000,000 in only four or five trades.

Another risk is the timing, as I have several trades in mind, but the actual sequence will depend on each one hitting its target before the next one has to be bought.

A third risk is that our selected stocks get targeted by the naked shortsellers. I don’t mind the real shortsellers like Jim Chanos who have a fundamental reason to be short. I object to the naked shorts that use market power, illegal coordinated bear raids, illegal rumors, captured journalists, illegal paid bashers, illegal paid negative “research” reports, and naked shorting in violation of Regulation SHO to knock stocks down. I’m not interested in fighting those guys, and the SEC is no help.

A fourth risk is that at the end of the sequence you will have to make some very big, potentially very uncomfortable bets. The table below shows how our investment will compound at a triple (3x) for each stock and for a quintuple (5x). I’ve targeted a 10x return for a few of the stocks listed above, but those are unusual opportunities.

In any case, those last couple of trades are lulus. Will you really roll over $50,000 to make $250,000, and then do it again to go over $1 million? Or $162,000 to make $486,000, and then do that again? Maybe so, maybe not. There is an old joke about a gambler in Las Vegas, down to his last $20, who tells his wife this is their last chance. He goes to the casino and everything goes right – he turns the $20 into a few hundred at the roulette wheel, then into several thousand at blackjack. On the way to the baccarat table he drops a silver dollar in a slot machine and wins $50,000. He sits down at the baccarat table with crowds gathered around him, waitresses bringing free drinks, the manager asking him if there’s anything he needs, and he loses every penny of it. So he goes home, and his wife says: “How did you do?” And he says: “I lost the $20.” I’m not sure you’ll feel like you lost the $2,000 if it happens on a $250,000 investment.

The fifth risk is that usually in a taxable account you will be paying short-term gains taxes, to the extent they exceed short-term losses. But we’ll be done with the trade sequence as quickly as possible, and the bottom line is you only risk $2,000 to try to make $1,000,000.

And the final risk is that you will put too much money in to start, thinking you’ll turn $20,000 into $10 million, or $200,000 into $100 million. Don’t do it. If this works, I’ll start another one and then you can start with $20,000 of your profits.

My job is to find, analyze, present and follow these stocks from buy recommendation to sell recommendation. Your job is to decide if what I am saying makes sense, adjust your position size to your resources, comfortable risk level and personal trading strategies. Together, I am hoping we can collectively take hundreds of millions of dollars from the market, including the naked short sellers and manipulative market makers.

There are two sequential trade sequences. One is in precious metals, because that sector marches to a different drummer and has very clearly defined cycles. I also think the mistakes Fed Chairman Bernanke is making practically guarantee a major blow-off in gold and silver.

The second is in “everything else.” We have active recommendations in each of these two sequences right now.

There is nothing wrong with owning a normal position in either current stock, whatever that means to you, in addition to the $2,000 positions dedicated to the Sequential Recovery Trades. I put a small amount of money into Coverdell Education Accounts for each of my two young girls, and I am following this strategy for them. Get the complete details and ever stock symbol now!