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FAQ
FREQUENTLY
ASKED QUESTIONS
I'M
NEW TO TRADING. WHAT'S THE BEST WAY TO GET STARTED?
The
easiest way to trade with us is to follow along with our "Monster
Portfolio" of
stocks that Mark Gordon trades. You will be sent specific instructions
on how to buy and take profits. We do all the work.
HOW
DO YOU PICK YOUR STOCKS?
We have found that the absolute strongest stocks in terms of relative
strength, earnings and revenues are the stocks most likely to become
huge winners. We like to see profits up at least 50% or more in the
most recent quarter as well as strong sales growth. ROE (return on
equity) is also an important factor.
WHEN
ARE YOUR DAILY STOCK-PICKS READY?
We send out an email and post our picks every market evening, usually
by 6pm (pacific time) or sooner.
HOW
MANY STOCK-PICKS DO YOU USUALLY POST?
This
can vary depending on market conditions. During strong "bull" markets
there could be over a dozen active picks. During weak markets we keep
our trades to
a minimum to preserve capital. "There are many times when I
have been
completely in cash, especially when I was unsure of the direction of
the market and waiting for a confirmation of the next move...." --
Jesse Livermore
ARE
SECTORS OR INDUSTRY GROUPS IMPORTANT?
Yes. The group move can account for the majority of a stocks move. We
focus on the strongest stocks (in terms of price strength) from the
strongest groups.
I'M
NEW TO TRADING. DO I NEED TO KNOW HOW TO READ CHARTS?
No. We do all that work for you. We do provide charts for each pick so
you can follow along with us and see exactly where we enter and exit
trades.
DO
I NEED TO CHECK MY EMAIL OR THE SITE DURING THE DAY?
No. Our trades are designed so you don't have to monitor them during
market hours. On rare occasions we may notify you of a change if
extreme market conditions make it necessary.
DO
YOU GIVE ENTRY AND EXIT POINTS?
Yes. We give you very specific trading instructions based on our unique
chart pattern reading. We also tell you where to set your protective
"stops" to control your risk.
DO
YOU ALSO SAY EXACTLY WHEN TO SELL AND LOCK IN A PROFIT?
Yes. We give you specific "profit targets" with each stock
pick. You will also be given instructions on where to adjust your
"stops."
DO
YOU CONCENTRATE ON SHORTER OR LONGER-TERM TRADES?
We adjust our strategy based on current market conditions. In sideways
or choppy markets we use a shorter-term strategy. During strong "Bull
Market" trends, we recommend longer-term trades. Remember, the really
big money is made when you let your "profits run."
DO
YOU EVER "SHORT" STOCKS?
Yes. During weak market or sector conditions we offer trades to the
"short" side. You will be given specific trading instructions. The
"big" money is made on the "long" side, but "shorting' can lead to
quick profits with the right market conditions.
DO
YOU USE "TRAILING STOPS" TO PROTECT PROFITS?
Yes. We move "stops" as needed based upon the current chart pattern for
the stock.
IS
THERE MORE TO THIS THAN SIMPLY FOLLOWING YOUR STOCK-PICKS?
Absolutely . Risk management is perhaps as important as good stock
picking. See our tutorial
videos for more info.
HOW
MUCH SHOULD I RISK ON A SINGLE STOCK?
Many successful traders never risk more than 1-2% of their investment
capital on any one trade. Conservative investors sometimes risk only
1/2% on each trade.
HOW
DO I CALCULATE RISK?
If you buy XYZ stock at $50.00 and the "sell stop" is $49.00, the
dollar risk is $1.00. If your portfolio is worth $10,000.00 and you
decide to risk 1%, you can afford to risk $100.00. See the
video tutorial on risk in our learning
center.
HOW
MANY SHARES OF STOCK SHOULD I BUY?
Using the above example you can afford to risk a total of $100.00 and
you're risking $1.00 a share, therefore you can buy 100 shares of XYZ
stock. It's that simple.
HOW
DO I MANAGE "PORTFOLIO RISK?"
This is called "portfolio heat." If you have 3 stocks with 2% risk,
your "portfolio heat" is 6%. Many successful traders never have more
than 5-10% of "portfolio heat." Beginning traders should keep "heat"
below 5%. I have heard of aggressive investors carrying 25% "heat" or
more. See the video tutorial on portfolio risk in our learning
center.
SHOULD
I DIVERSIFY?
Yes. Buying stocks from several different sectors of the market can
lessen the risk exposure of your portfolio.
SHOULD
I USE "MARGIN?"
You should only use margin if you are a very experienced trader and
your portfolio is already showing a substantial profit. You'll also
want the general market to be in a strong "bull" trend.
HOW
DO I CHANGE MY ACCOUNT INFORMATION?
To make any changes to your
account information, update your password, or to cancel, please click
on the following link. Membership
Account Information
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