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FAQ
- How
to get started? Start trading with QQQQ.
Paper
trade and back test my signals with a few different companies or
funds you like. More on this on 'What to Trade' page
and in my email alerts.
- How much should I invest on any given signal? Start
paper trading with a small amount and add to it as you gain more trust to my
system and as you learn to trade my system. If you know what you are
doing then invest as much you normally would invest. My system is designed
so that most losses should be relatively small. Here is some
information about positioning sizing, which can help you to
determine how much to risk on each trade... During
a bear market 80 to 90% of rallies to the upside fail. But we
must be in to win, so we must suffer through painful
whipsaw action and small losses because any rally could turn out
to be a major rally. During bear markets take smaller initial
positions when betting on a bull rally and during bull markets
you must be more careful when shorting because most down action
will fail. - I am new subscriber can I jump in on a
ongoing signal? The best is to wait for the
next signal, but sometimes that can take for
months so if you are
accomplished trader you can try to get on during dips; buy when
the price bounce on
a support or a trend line. I will indicate some secondary buying opportunities, which you can
use to accumulate more or to get in. When acting on these secondary
signals you must use your own stop loss because any market can
turn back down at any time. These secondary signals
tend to be more risky than the original signals. As
you know you must be in to win, and the safest way to get
in is to do it little by little. You may get stopped out on some
signals, but your losses should be fairly small and in the long
run you should have more winners than losers. See here for more info...
- Can I
sell my position even if
you have not issued a sell signal?
There is nothing wrong by
taking some or all of your profits off the table after a profitable
run. Especially if you are trading something that I am no
tracking; your stock may tank sooner or later than my signal.
Also if you are trading something that you think will
keep going up after a sell signal, sell 50% and let the
rest run. There are many ways to work with my signal. - Should I short? It's up to you. You could also go long on the
QID, which is 2x inverse super fund for QQQQ. In other words this ETF should
go up as QQQQ goes down. Usually IRA accounts don't allow
shorting, but you can buy one of these inverse funds in it. Especially
in a clear cut bull market it's not advisable to go short.
Sometimes cash is king. - How about trading on
margin? Yes you can use margin, but remember that
using margin involves a greater risk. Also the new ultra long
and short 2x or 3x ETFs funds work as margin trading. - Can the signal be used for options or
futures trading? I don't follow either one of them, so I
don't know. But what I do know; both of them involve a great
risks. So never trade them unless you really know that you are
doing. If you know about options etc. let me know if my signals
work with them. -
What should I trade? I recommend that you start
with QQQQ unless you are accomplished investor. Go to the 'What
to Trade' section of this website for more information. Also on
my emails I will provide a sample portfolio for you. -
Your signal is always fully invested; do you ever recommend subscribers to
go cash? I
like to keep it simple so I let my signal
be fully invested all the time. Long and short even though this
may mean some unnecessary whipsaw and small losses. I realize
that being fully invested all the time is not for everybody,
but I believe
that at the end of the year; by getting the profits of a couple good
runs
should even out any whipsaw losses that I may have suffered. But
of course there could be special circumstances that I will issue
Cash signal. - Referral
program? For every new one year paying member you refer;
you will get two
months free. No limit how many people you can refer. You will be
credited the free months after the three month trial period is
over. Instruct your friend to email me with your name when they
join the service. - Why the subscription is
auto renewed? Your
subscription will be auto renewed at the end of the subscription
period you have chosen. This way you lock
in the original subscription price and as long as you stay as a member your subscription price will
never go up. When you get new credit card number
it's your responsibility to update your file in PayPal so that
you will not lose your original price. Also
if I advertise a special price that is below your current subscription
price you can take advantage of it by canceling your current
subscription and subscribing again with the new lower price. But
note that your old subscription will run until its term ends. This makes sense
if you have only few months
left on your old
subscription. - If I want to cancel my subscription? You will
get a refund according to a following rules: If you are a first time
member and cancel
during the 90 day free trial period your credit card will not be billed,
but you still have to cancel your subscription at the PayPal. After the
90 day trial period there are no
refunds; your subscription will run until the end of the term
you have paid for. If you want to cancel ongoing subscription;
cancel your auto-renew subscription at PayPal. Please
note: Free trial
period is for the first time subscribers
only. If you
have been a member earlier and subscribe again there are no
trial period or refunds of any kind. - Can you
give individual investing advice? No I can not. It is
against the law. You can email me general questions on the
markets etc., which I could answer on my
web page or email alerts. - Should I follow other
newsletters too? Yes you should. It always good to get a 'second
opinion' especially when your hard earned money is at
stake. (One of my favorites is Navallier's free weekly Market mail.
It's free of unnecessary doom and gloom that so many other
newsletters seem to concentrate on. You must keep in mind that
Navallier does have a product to sell, and that can affect his
commentary.) You should also
have a one good source for daily commentary to help you when
the markets are behaving crazy. But if you read too many newsletters you may
just get more confused than anything else. It seems
to me that many financial newsletters get lost in the myriad
world of TA and don't see the tree from the forest any more.
They tend to over analyze everything. Every analyst is trying to
come up with a reason why market did this that or something
else, like it could even be known. Markets do what ever they
want to do and most of the time we really don't know what are the real reasons
behind most of the market action. The over analyzing stems from a fear.
When you are fearful you will look for justification for your
fear in every indicator there is. If you look at 17
different indicators; some of them will always point the other
way than others, and that can cause the 'dear in the headlights'
effect, in which you will not be able to make any decision. The same way;
by reading many different newsletters it can make you unable to trade because one guru is saying to
buy and the other to sell... so which one do you believe? Too
much information can paralyze you. - Can I use other stock
market systems with your system? Yes you can. My system
doesn't indicate whether we are in a bull or bear market. It
just indicates a medium-term market direction. For example the Dow Theory and others like it can tell
us when we are entering a bear market and then we can short with
less risk because the market's primary direction is lower. - Does you signal track gold and silver? No
it doesn't, but it seem to track PM stocks pretty well at least
in 2007 it did. I like
PMs and recommend that everybody get some physical gold and
silver. Buy a
few American Eagles, Maple Leafs etc. they are liquid and have a
small premiums. I think that gold may go higher than anyone
can imagine. The gold went in 10 years; from $50 1971 to $850
1981. That's a
hefty gain of 1600%. Something similar just might be in store for PM
this time too? And if nothing else a relatively small amount of
gold can act as insurance for some unforeseeable global catastrophe. - I have found a ETF that tracks your signal
pretty good, will that continue in the
future? There
is no guarantee of that, but if two investment vehicles move in
tandem for a close to a year odds are pretty good that they
should continue the same way. Of course sometimes some sectors stop following my Signal, as happened to the financial stocks
in the fall 2007. So you must be aware of that different stocks
or sectors may stop moving with my signal at any given time. If you think the sector you are invested
in is in trouble; sell it and take the profits
or even a
small loss rather than risk it for a big loss. As long as you
have your capital there is always going to be another sector in
which you can trade to recoup your
losses. - How do you back test? I
do it manually and it takes a lot of time. Actually I am looking
for a back testing tool preferably a free one that I could also
recommend to my readers. It should be one that I can input all
of my signal dates and any trading symbol and then it would
automatically calculate the results at market open prices. If
you know one let me know, thanks. - Should I have a stop loss
in place? Have a mental stop; you do
want to guard against a big losses. When it comes to losses my
thinking is that any loss
of less than 3% is not even considered a real loss. I
think that it is a part of the cost of trading just like the brokerage fees
and taxes are. You have to throw a bone to the market makers every
once in a while. Small losses like this happen (constantly) to
all of us. Many trading systems may have as many as 50% of
trades in the negative territory, but still make a good profit. My
system may create up to 1/3 of false signals/whipsaw. You
could for example have a 5 to 15% stop when trading QQQQ, DIA or
SPY. (With 2x and 3x ultra ETFs it's more difficult to use stops
because they tend to swing a lot). If you hit your stop you sell
or cover and stay in cash until the next signal. Or you could
buy/short again if you stock reverses and comes back above the
price you sold/covered it. If only one of your holdings
hit the stop, sell it and let the others run. Also when
entering into a trade on your own, you can set a stop at the previous day's
low. - What should I do if the markets tank? If
there is a 911 type of an incident, don't wait for my signal to
sell or to hold. I would be just as clueless as to what to do as
anyone else. What could happen after an incidents like
that is beyond everybody's guess. After 911 the markets did
recover in 5 months if my memory serves me right. Also
same way as E-Trade stock tanked 60% overnight (11.12.07) on the
bankruptcy rumors any stock or sector can go south for some unforeseeable
reason. If that happens to one of your stocks do what you
think is right. Just remember that protecting your capital is
the most important thing. As long as you have a good part of
your capital intact you can bounce back. Should there be a special situation like that I
will email my thoughts about it to all members ASAP. - How
many positions should I have? That depends on your style,
experience and the amount of money you have. One way is to invest in maybe
about four different ETF/sectors when fully invested. Divided about equally. This all depends of the investment climate, the individual style
and how experienced trader you are. When it comes to shorting: You should go only with one or two funds. For example:
Short QQQQ, DIA or SPY and buy QID inverse fund on your IRA
account. The whole idea of my service is to be invested in only
few sectors and to keep it simple, stress free and yet to make a good
profit. - How can
I help? You can do a lot if you want to, and all help will
be greatly appreciated. You can back test my signal to different
stock and ETFs. You can stay on the lookout as to what sectors
may be falling out of sync with the signal and what are starting
to follow it. Especially if you are from another country than US
your back testing will be especially a great help. - What
to do with your old positions that are way down? This
is one of those questions that are pretty much impossible to
answer. I once had a stock 'JADE', which I bought for about $3.
It tanked and was bottom fishing for a long time. I forgot about
it for a year or two. Finally one day I looked at it and it was
perking up and as it went above my original purchase price I
sold it for a small profit. Well, right after I sold my position it shot up to $12.
So you never know. If you are down 80 to 90% on a stock,
it's pretty much useless to sell it, especially if you don't
need the money and if there is even a slight chance that it will climb back up even part of the way again one day in the future.
Or you can sell it in a year when you can use the tax deduction
from it. If your stock in down 50% you may consider of
selling it and putting that money in better use. Lets say you had
$10k invested on a stock and you are down 50%, so now your position's
value is $5K. This
stock would have to appreciate 100% before you would be back to even.
You must ask yourself; is there
that kind of possibility? Or could it tank even more? You
could buy some other stock that is more profitable with that $5k. If you
could make 20% on your $5k per year; you would be back at $10k in
about 4 years. What do you think would happen to the original
stock in that same time frame? Also if you have any credit card debt
you could use that $5k to pay it off and that way earn 20% on
it. Everything depends on your income,
living expenses, age, work situation as well as wealth and
portfolio. - Can you tell me about the indicators
you use for TA? I use an internet based TA program that runs a scrip of several indicators, and that set up is proprietary and I cannot
reveal it. I understand that for a person who knows about TA it would be helpful to know more about my
system in order to be prepared for new signals. But what you can do is to do your own TA and then when you get my email alerts you can use my buy and sell signal to support and maybe even confirm your own TAs' signals.
On my website Portfolio page I try to give a little bit of a warning that a sell
or a buy signal might be imminent so that you can look at your
own indicator to see whether they agree. If you are a new comer to investing then I would recommend that you just follow my signals when they happen. -
How is Thailand? Thailand where I spend my winters is great place to
live and
so is Finland especially during the summer time. You could
also be living on some tropical island. Have a long term plan about what
you REALLY want out of life. Save money, invest smart and have a
plan for yourself. Stop to think about where the most of your hard earned
money goes to... mostly to junk. Just because you keep buying
all the nearly useless stuff you must go to work. Actually you
buy stuff because you think or hope it would make you feel happy
or happier! The next time you find yourself buying yet
another cell phone or flat screen TV; stop to think what do you think this purchase will do for you. If you are honest
with yourself you will most likely realize that you are not feeling
good about yourself or your life and you are trying to uplift
your mood with this purchase. Thinking and writing about
these kinds of things is close to my heart...
stocks are not. Stock market just enables me to keep living
free as a bird. I am very glad that I sold my business in Los
Angeles and
started to travel and do things that I truly enjoy. Life is way
too short to spend it chained into a desk that you may not even
like. If you truly like what you are doing, there's nothing
wrong about spending a lifetime at it... but how many people
really do what they like to do? Not many! I actually liked LA and my furniture business and yet I am
glad that I left it. I spend 22 year at it and that was enough. If
you want; check out my other web page: www.emotionalwealth.com
to learn more about
my life philosophy. - What
is your privacy policy?
None of your information is sold or shared
with others. See the Terms of Use right here...
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