The basics of our trading system

There is a simple maxim when it comes to stock investing: buy low, sell high. Along with this important maxim, is a commonly enunciated myth involving stock trading: it's impossible to determine when a stock has peaked or when a stock has hit bottom.

We have developed trading strategies and stock trading systems that have resulted in much larger returns and more palatable risk and return ratios than is normally or traditionally found around the stock market.

The idea is simple in essence, and our previous results demonstrate the effectiveness and usefulness of our stock trading system.

Even during those period of times when a stock market is volatile and stock trading trends become more difficult to plot, our trading system and overall stock market strategies have proved effective.

 

We have a timing system that gives us the general trend of the market. These stock market timers can have different speeds in detecting the stock market upturns and downturns. In general, a fast timer might give you better results but higher withdraws from your trading account. The opposite is true for a slow timer.Our timer is of a SLOW type: not many changes during the year, therefore not many trades.

· Filters criteria that help us select certain types of stock that can perform very well in the type of stock market detected by the timers. The filters criteria follow the very simple concept of continuing the trend: if a stock has started on an UP-trend it would go in that direction for a period of time.The EXIT strategy IS crucial in deciding the winners from losers!

Go to Barchart web site, and free of charge, you can see the TOP 100 performers on a particular day. On the day the trend signal from our web site changes(let's say from DOWN to UP), choose (go long) TOP 5 or TOP 10 stocks that have the Average Volume over 100k. Those stocks would be your portfolio untill the next change in the trend. Don't forget to apply some money management strategy or you WILL LOOSE ALL OF YOUR MONEY, guaranteed!

If the signal from our site say "DOWN" you have two(2) options: you can short the TOP 5 or 10 stocks fom the the same list, OR you can BUY some special mutual funds, as per our article " Special Mutual Funds" .

You can use the same idea of selecting some momentum stocks by using other free web sites:MSN Money ,Barchart ,Barchart Sectors,Google Stock Screener. Just make sure the selected stocks ARE part of the right sector/index that has changed the signal!

 

· A very sound and tested money management and portfolio management strategy. This is a very important component of our stock trading system because without proper money management, a successful stock trade cannot save you from the damage of a string of straight stock trading losses.

If we were to summarize our stock trading system:

Timing + Filters + Money Management = Successful Stock Trading System

In order to maintain our edge in the market and because of the complexity of our timing system , we have decided not to make it fully available to the public at the present time. We are limiting the release of information to trend signals taken from the trading system.

In our portfolios, we normally select stocks that have greater liquidity (over 100k shares/day), so it shouldn't be a problem to have your order filled by the broker. For shorting stocks, if you choose to (some investors prefer to stay in cash during a downtrend) you will have to check with your broker to see if they are available.

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