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FAQ
FREQUENTLY ASKED QUESTIONS

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. 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

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.

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. With our "Tandem Portfolio" service you will receive emails during market hours informing you of trades. 

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