To make big profits, you have to take big risks.

That’s a common belief among investors. It comes from the efficient market hypothesis… the idea that the price in a market is always correct.

The problem is that this idea is not only wrong… it’s dangerous.

I’ve made my career finding low-risk investments with high upside. It’s absolutely possible. And thanks to ETFs, we have opportunities to make triple-digit profits without taking extraordinary risks.

[ad#Google Adsense 336×280-IA]Let me explain…

My True Wealth Systems readers have locked in multiple triple-digit winners without taking enormous risks.

The key is finding the right opportunity, investing the right way, and being willing to cut your losses quickly if things don’t work out.

Let me show you an example…

One of our biggest TWS winners has been health care stocks. We first bought into health care in January 2012.

The trade is currently up more than 300%.

The thing is, this was never a risky trade. That’s because we bought when heath care stocks were cheap… when no one else was interested in buying them… and after they had begun rising in price.

This is my investing mantra – buying what’s cheap, hated, and in an uptrend. Health care stocks fit this perfectly two years ago.

Major health care stocks – companies like Johnson & Johnson (JNJ), Pfizer (PFE), and Merck  (MRK)– traded for single-digit P/E ratios. Many were near their lowest recorded P/E. And they were paying enormous dividends, compared with history.

Still, no one was interested. We were just coming out of a major market correction in late-2011. Everyone was scared… expecting another 2008-style crash. But we saw that fear as an opportunity.

So when health care stocks began a new uptrend… we got in quick. Take a look…

This trade had everything we look for… health care stocks were cheap, hated, and starting an uptrend.

To fully capitalize on the idea we bought with leverage. We bought the ProShares Ultra Health Care Fund (RXL) which returns twice the daily change of the overall health care sector.

Now, buying with leverage might seem risky. But it actually wasn’t. We knew the fundamental story for health care stocks was strong. And we had an uptrend in place – which lowered our risk further.

Three years later, we’re sitting on 300%-plus gains. And we still own the position today.

Most folks think you have to take big risks to make big gains. But with ETFs, this isn’t the case.

We didn’t have the risk of a single company. And we weren’t betting on risky options to make enormous gains.

We found the right investment, bought at the right time, and made the investment the right way (with a leveraged ETF).

This is safest way to make triple-digit gains. And it’s how we use ETFs every month in my True Wealth Systems newsletter.

Good investing,

Steve

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Source: Daily Wealth