When I was 15, my parents loaded the kids into our Ford Torino Squire station wagon and set off on the trip of a lifetime - a six-week, coast-to-coast odyssey across the United States.
To this day, it's still one of my favorite memories.
However, along our journey, there was one place that stood out to my younger self the most - Yellowstone National Park.
I'll never forget witnessing the rolling landscapes, the roaming critters, and the bevy of geologic oddities inside the park.
I keenly remember as "Old Faithful" - the world's most famous geyser - shot a stream of boiling water 140 feet into the air.
Call it the pre-engineering curiosity in me, but I became obsessed with Old Faithful.
I wanted to know everything about what made this ancient geyser tick...
- How often it erupts
- How high it is
- How long it lasts
- How many gallons of water does it expel
- How hot is the water
- How it maintains its predictable schedule
I spent countless hours researching its perfect geothermal system until I knew the structure inside and out.
And one of the most fascinating things I learned about Old Faithful is, much like our 10-Minute Millionaire system that "spouts" profits, the Wyoming-based geyser has three key parts to its system...
- Abundant groundwater
- A constant heat
- And a boiling chamber
There are two reasons why I'm telling you about Old Faithful today.
First, the geyser's streamlined and powerful system aligns perfectly with our own 10-Minute Millionaire strategy.
But its constant water "spouts" is a perfect analogy for our favorite pop-and-drop play - Columbia Sportswear Co. (Nasdaq: COLM).
Here's what I mean...
Our Very Own "Old Faithful"
When you look at the three parts of Old Faithful's system, it's uncanny how similar it is to what we do here at The 10-Minute Millionaire.
First is the geyser's abundant water source.
For us, it's extremes.
I've said time and time again that market extremes aren't just once-in-a-while opportunities that come along when the prices of individual stocks, business sectors, geographic economies, or entire asset classes get out of whack.
You can find these extremes everywhere in the market.
They show up in broad indices. They show up in specific market sectors. They show up in stocks and bonds...
And this reality opens up an abundant of profit opportunities - on the long side and the short side.
Second is its constant heat source that supercharges the water.
Much like the leaving a 1,500-square-mile, volcanic crater that provides the optimal amount of heat to Old Faithful to help propel the water skyward, our system is designed to streamline each trade to its peak efficiency.
And lastly is the "boiling chamber" that shoots the water out of the chamber, delivering the eye-catching show to onlookers...
You see, back when I was 15, the existence of a boiling chamber was theory - not fact.
However, in 2013, scientists definitively identified the chamber and natural piping structure that allows Old Faithful to erupt so consistently.
And this is where the similarities start to get eerie.
Much like the boiling chamber that keeps Old Faithful on a tight schedule, our third and final step, booking the profit, is designed specifically to move us in and out of trades at a constant, consistent pace.
Like Old Faithful, The 10-Minute Millionaire is a time-tested system designed to provide opportunities with huge profit potential and execute them over and over again.
Now, like I said at the onset of today's column, Old Faithful's system isn't just a perfect analogy for our own millionaire-making system.
It also plays perfectly into one of our favorite trades...
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Target Reliable, Repeatable Wealth
When we first looked at Columbia Sportswear, I told you that the extreme at the heart this trade is capable of delivering consistent and predictable wealth.
I call them "extreme turnarounds" or "pop and drops."
These types of extremes appear when a stock is locked in a "sideways" trading range but the security beneath it is experiencing an extreme low or an extreme high.
If you can grab shares experiencing such extremes, you can profit when the share price "snaps back" and "pops" (from an extreme low) or "drops" (from an extreme high).
Here was that original setup...
I love pop-and-drop extremes like this because, at their core, they are designed to deliver predictable, fast-paced profits.
Exactly the kind of reliable and repeatable gains we look for here at The 10-Minute Millionaire.
You see, by stringing together a predictable series of gains in rapid-fire succession, you have the power of compounding with you like a wind at your back - which has the power to propel you towards millionaire status in just a few years.
And this sportswear behemoth has moved us one step further down our path from the very beginning...
Columbia Continues to "Spout" Profits
Here's the thing...
At the end of June, Nike announced blowout earnings and experienced a huge price spike.
In our recent "Midyear Millionaire Checkup," I said that this boded well for Columbia's earnings announcement on July 27.
We couldn't have been more "on the nose" with that call.
COLM beat earnings estimates and grew revenue on a year-over-year (YOY) basis ahead of estimates.
Plus, the company's SOREL line of fashion-forward boots and shoes grew unexpectedly well - 70% YOY, in fact.
All of this plus good forward guidance excited investors enough to drive the price up and through our profit target.
Here's how the trading action, included the big earnings pop, has played out...
Now, here's how we're going to play this trade going forward...
We're going to maintain our original 6% stop loss.
But we are going to make some adjustments to our next profit target.
We'll book profits on the next 25% of our initial shares when the price hits $62.97.
Now, as we monitor this trade, there are several things to watch - and watch carefully.
Fact is, apparel firms have faced a lot of pressure over the past year. Columbia has managed to beat revenue expectations and grow both its in-store and e-commerce sales numbers. However, like all apparel companies, it's vulnerable to any stumbles in the overall economy.
On the upside, Columbia continues to deliver what customers want - rugged, well-made goods at a reasonable value. And that bodes well for the company long term.
I fully expect this rebound to continue, delivering constant, reliable profits along the way.
Now, I understand that all of this might seem overwhelming to some.
But I'm here to help guide us on this journey - together.
Fact is, much like the hours I spent learning and discovered all I could about Old Faithful, this system will become second nature to you.
And when it does, you'll be firmly on your path to your first - or next - million.
And that's something I can't wait to see.
This "Secret" Helped Transform Two Teachers into Millionaires: Donna and Dave R. were both teachers in Boston. But today they're retired millionaires who are also earning $10,000 a month in income. Their secret? Much of their wealth is due to a Great Depression-era "program" most have no idea exists. Learn more…
The post This "Old Faithful" Strategy Is Your Best Bet at Lifelong Wealth appeared first on 10-Minute Millionaire.
About the Author
D.R. Barton, Jr., Technical Trading Specialist for Money Map Press, is a world-renowned authority on technical trading with 25 years of experience. He spent the first part of his career as a chemical engineer with DuPont. During this time, he researched and developed the trading secrets that led to his first successful research service. Thanks to the wealth he was able to create for himself and his followers, D.R. retired early to pursue his passion for investing and showing fellow investors how to build toward financial freedom.