Dear 1-2-3 Trader Subscriber,

I’ve worked in the financial markets since 1980 as a stock and bond broker, trader, and management consultant and my quantitative and technical methods have generated outstanding gains for private investors and hedge funds.

Before joining the Mt. Vernon Research team, I ran a highly successful private advisory service, where I racked up gains of 153% in AngloGold; 124% in Sunoco; 115% in Safeco; and 96% in Monster along with more than two-dozen additional double-digit winners in just 18 months.

I’ve refined a unique trading research service based on pattern recognition – a prolific technique that amassed a two-year return of 417% on S&P futures for my subscribers.

I’m also a past winner of the U.S. Trading Championship (options division), with a return of more than 300% in just 3 months. I also racked up impressive finishes in two Winner's Circle trading competitions, posting a whopping two-year return of over 400%.

And talk about a potent one-two punch: A computerized pattern recognition strategy with a long and impressive track record of correctly predicting the precise timing and price movement of a stock or index… PLUS an award-winning stock and option expert with a better than 20-year track record of selecting winning trades.

A few of you may have seen my industry renowned “Low Risk Strategy” investment report – which never had a losing year in its seven-year history. In fact, during the bear market of 2000 to 2003, I posted a 353% cumulative gain – all while the average of the Dow and NASDAQ composites fell 60%.

With 29 years experience in the securities business – 15 of them as a technical analysis expert – perhaps no one in America understands the complexities of the markets better than I do. CNBC has quoted me and interviewed me live on-air and I’ve written guest articles for Business Week and Real Money. I even taught courses on trading to professional traders!

While many investors continue to struggle for ways to beat the stock market, with my Mt. Vernon Research service, The 1-2-3 Trader, you’ll have exclusive access to a powerful, computerized system that nails down the movement of markets and stocks with pinpoint accuracy.

Even during this year’s volatile market, a few of the winners we’ve nailed down include…

  • 73% gain on a Whirlpool call option in 5 days
  • 37% gain on Merck & Co. in 24 days
  • 162% gain on a Whirlpool call option in 6 days
  • 28% gain on Lubrizol in less than 13 days
  • 35% gain on SPDR Gold Trust put option in 12 days

In fact, we’ve had 19 winners in the last few months.

And we’re just getting started!

By telling you what’s going to happen, when it will occur and how much the asset could move, you’re in a rare position to know how to take advantage – and when.

The premise of the 1-2-3 Trader is simple: I’ll show you how to use the same strategies that the world’s top traders and professional money managers do to consistently score market-beating returns…

Your Pathway to Riches

The reason the 1-2-3 Trader system is so successful is because it blends two powerful forms of analysis:

Technical Analysis: The method of evaluating markets and stocks by studying specific technical trends. This includes chart pattern recognition, support and resistance points, numerical sequences, and many more.

Precise Quantitative Research: This subset of technical analysis is more oriented toward numbers and statistics. Our system uses quantitative research to make sure the statistical odds are stacked in our favor and technical analysis to help us time our investments.

Using vast amounts of historical data and complex programming code, this computer program is able to “forecast” which way a stock is most likely to move based on past trading patterns in similar market conditions – much like HOW giant computers are able to track the future path of a hurricane based on the storm’s history.

What is the 1-2-3 Code exactly and how can it make you a ton of money?

Bottom line: It’s an intricate combination of computerized algorithms (factors) that you can apply to any stock.

  1. Pattern Recognition
  2. 6 Golden Numbers
  3. 5-3 Predictive Indicators
  4. Gann Analysis
  5. Market Volatility
  6. Gap Analysis
  7. Bollinger Bands
  8. Cycle Trend Analysis
  9. On-Balance Volume
  10. Parabolic SAR
  11. Confidential
  12. Confidential
  13. Confidential
  14. Confidential

It’s able to take that data and calculate an astonishingly precise and accurate “buy in” price… as well as very specific “target profit prices” the investment is expected to reach… and the timeframe you can expect to wait for your profits.

The Code was designed specifically to cash in on low-risk but predictable moves in stock prices – moves that allow you to safely earn 20% to 80% gainsusually in less than 30 days.

Every now and then, the market will surprise us with bigger-than-anticipated gains, just like when Bank of America and Fastenal rewarded us with 89% and 100% gains in a matter of days...

Each 1-2-3 Trader alert will be concise and simple, telling you what factors are driving the market or individual stock higher and giving you step-by-step instructions for what you need to do and why.

And we’ll often give you two ways to play each recommendation, too, with detailed instructions for trading the underlying stock or an options play.

You can go for the safe and steady gains associated with buying the stock outright – or you can step up the risk slightly and accelerate your profit potential by buying the recommended option. Or you can do both.

Here’s what you’ll see…

Stock Plays:

  • The name of the investment, along with the ticker symbol.
  • Specific “action to take.” This includes:

    1. Direction: This will either be long or short, along with a price range that tells you where you should enter.

    2. Stop-Loss: We’ll give you a specific price at which you should place your stop-loss, so you can protect your equity in case the trade doesn’t go our way.

    3. Profit Target: When appropriate, you’ll get an initial profit target level where we’ll recommend you take profits on half/all the position. In addition, we’ll also issue instructions on how to adjust your trailing-stop on the second half of a profitable position).

Options Plays:

About 75% of the time I will give an option trade also, but not always.

Just like a stock play, we'll give you exact directions, including:

  • The name of the investment, the options' expiration month, strike price, and whether it's a call or put, followed by the option symbol. We'll also give you the same stop-loss and profit target information, as shown above.

Keep in mind that while options give you the potential for larger returns, they can also be more volatile. That's why we'll always select the option that gives us the best reward-to-risk ratio.

Just follow our exact instructions, and entering into a 1-2-3 recommended trade is very simple.

Here’s how it works using a typical “1-2-3 Trader” e-mail example:

** Trade Alert: A Put Play On The Russell 2000 ETF

The 1-2-3 Trader has generated a put play on the iShares Russell 2000 Index (AMEX: IWM) - the ETF that represents the Russell 2000 small-cap index.

The Russell 2000 was one of the only indexes to make new correction lows on Tuesday, which means that the odds are high that IWM should trade down to its next support level at $81.05.

However, since the stock reached a low of $81.40 on Tuesday, it has rallied - and short-term upward resistance comes in around $83.20.

With important economic numbers due out over the next two days, the stock could move above this short-term resistance point before coming back down, so here’s how we’ll play it…

We’ll try to buy a 50% position in the July $83 puts now, and if the stock moves above our short-term resistance level, we may add another 50% position at better prices.

If the price becomes more favorable, I will send out another message alerting to you to buy the remainder of the position.

However, if you wish to make just one transaction, please follow the instructions below, using the stated entry and exit points.

Action To Take:

  1. Buy the IWM July $83 puts (IOW-SE) if the stock trades above $83.09.

  2. Set a protective stop-loss – exit the trade if IWM closes above $84.20.

  3. If filled, take profits on the puts once the stock trades below $81.10.

You can enter a limit order with your broker to ensure that you get in at the correct price. We don’t suggest that you buy outside the recommended entry price range. These are given for a reason – to give you the best chance of obtaining optimum profits.

If there are any adjustments to any of our positions, we’ll let you know immediately. You’ll know where the markets are headed at all times – and how to take advantage.

Bottom line, I’ve created a computerized code that’s more powerful than anything created by Wall Street…

The only question now is: Are you ready to start making money?

Profits Keep Pouring In…

The fact that we keep racking up wins – even in a market as volatile as this one – just goes to show how powerful the 1-2-3 Trader system is.

And how important its insights will be over the coming days and weeks.

History of Producing Profits…

In 2007, I recommended 22 stocks, which resulted in profits of up to 150%. Here are some of my winners:

  • iShares Russell 2000 Index July $80 puts: Recommended on 6/20/2007, subscribers made a 72% profit in 16 days.

  • U.S. Oil Fund ETF June $49 call: In just under a month, this recommendation made a 53.5% profit.

  • Ford June $9 put: A 100% gain in less than three weeks.

  • Verizon March $37.50 put: A 115% gain in 25 days.

  • U.S. Bancorp March $37.50 put: A 75% gain in 11 days.

And in 2008…

Even in the midst of a brutal market, my Boeing (BA) pick in early June 2008 raked in a gain of 80%.

Later that same month, I instructed subscribers to execute a short position in Coca Cola shares and played put options, too.

Result? A 5% gain on the stock and a 89% profit on the puts.

In July, my Harley Davidson play initially made a 28% gain, which then soared to a final profit of 112%.

A few weeks later, my Federal Express September call picked up a 54% gain in ONE day.

Other winners included a 57% gain on an American Eagle Outfitters March call in 21 days and a 92% gain on an Allegheny Technologies February call in 4 days.

And In 2009…

Our winning streak continues… with 19 winners since the beginning of the year.

In fact, in the last 90 days, we’ve recommended 9 straight winners – giving us a 100% win rate during a volatile period in the markets…

  • We recently sold ½ our position in Costco May $45 calls for about a 33% gain in 13 days… followed a week later by selling the other half in 19 days for a 71% gain.

  • A short position in Fastenal and a put option play resulted in a 12% gain on the stock and a 100% gain on the put in 10 days.

  • A short position in Spyders Gold Trust shares and a put option play resulted in a 6% gain on the stock and a 35% gain on the put in 12 days.

  • A long position in International Paper resulted in a 48% gain in 23 days.

  • And our most recent winners… a 10% gain on Coca-Cola stock in 22 days and a 52% gain on Coca-Cola June $42.50 calls in 20 days.

And as you might expect, subscribers are delighted…

Subscriber Curt M. writes…

“I am sure you don’t get a lot of feedback but I wanted to say I appreciate your mkt commentary as it helps with my overall judgment on trades I have done. So far so good.”

The 1-2-3 Code Finds Winners in Any Market

Every hour the markets are open, my 1-2-3 Trader computers scour the market, crunching the data on the basket of stocks the 1-2-3 Code follows... looking for recurring patterns or situations where a definite trend upward or downward is likely to occur.

This program uses serious, professional technology, which I’ve spent years of my life and hundreds of thousands of dollars on – the kind professional traders, who move millions of dollars through the markets each and every day, rely on.

Remember, it doesn’t matter whether prices are rising or falling. The 1-2-3 Trader is designed to find winners in any market conditions. The more volatile – the better. And right now there’s plenty to fuel a volatile market…

Considering the code’s recent history of success – and the high levels of volatility in the stocks it tracks – the next opportunity could be just hours away.

. If you’d rather activate your subscription by phone, please call our VIP Services team at 888.570.9830 or 410.454.0498 and offer Priority Code: .

Regards,

Jim Stanton
Editor, The 1-2-3 Trader

P.S. The last few months have been very volatile in the markets – with the weak economy, high unemployment and the housing crisis… But during that time, subscribers were able to book 18 double- and triple-digit winners using the 1-2-3 Trader system. These are times like no other with great opportunities available. And I really hope you’ll join us for the gains I firmly believe lie ahead.