Frequently Asked Questions
I've never placed my own trades in a brokerage account before. Is it complicated?
No. It’s quick and easy. Each trade requires you to enter:
- Stock symbol – which we provide
- Trade action (buy, sell, sell short or buy to cover) – which we provide
- Order type – we recommend “market”
- Number of shares — you calculate based on your available capital and the stock price – which we provide. Your order information will always appear on a “review” screen to allow you to check for accuracy before submitting.
Anything Special I need to know when setting up my account?
To take full advantage of newsletter trade opportunities, you should be prepared to “sell short” as well as “buy”. This requires your account be identified as a “margin account” rather than a “cash account”. You will be given an opportunity to select this designation when opening your account online. If you already have an account and are not sure if it is a margin account, contact your broker. They can assist with converting your account to a margin account if it is not already designated as such.
How often do you trade?
Stock Trader Advisory is designed to not interfere with subscribers work week. We recognize it is highly impractical for most individuals to be able to respond to intra-week trading alerts. No action is required of our subscribers other than a few minutes each Sunday evening.
What's your track record?
Everyone's portfolio is different, depending on when you start following or how many stocks you follow. Our track record confirms, however, that we should expect more gainful trades than losing ones, and the average gain should far exceed the average loss. Over the long run those that remain fully committed, active and disciplined should do very well.
I don't yet have a discount brokerage account. Which one do you recommend?
Things have changed more recently. There are a lot of free options out there for you to trade with $0 Commission. Companies like Etrade provide that option. We always recommend doing research to know what you pay per trade.
How do I set up an online brokerage account?
Account set up is done online at the brokerage’s website by simply entering some basic personal information. Then you will be assigned an account number. Like other online accounts, you will access your brokerage account via a login ID and password of your choice. You can deposit funds into your new account at a later date by hand delivery, mail or wire transfer. When funds have been credited to your account, you’ll be ready to trade.
What does "selling short" Mean?
In its simplest terms, referred to as "buy low, sell high". It is also possible to profit from a stock that appears poised to decline in price – a trading opportunity most investors are either not aware of, or ever had explained to them.
Are there losing trades?
Yes, they are a part of trading. Even with our constantly improving analytics, events and news can break at any time and abruptly change the sentiment of institutional investors toward a stock, resulting in a sudden price trend reversal.
What is the next "great stock"?
Our analytics are not “predictive” of trends in the broad market whatsoever, so we are not the ones to ask where the market will be in one month, six months or a year. They are very effective, however, at indicating which direction 60 specific stocks will move in the next week, and that is all we need for success. We re-analyze those same 60 stocks next week and every week thereafter to identify when to take action and reverse direction in any of them.