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YOU ASKED. WE ANSWERED

Here are our most commonly asked questions. If you have a question that isn’t here, please send us an email.

FAQ

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No. It’s quick and easy. Each trade requires you to enter:

  • 1) Stock symbol – which we provide
  • 2) Trade action (buy, sell, sell short or buy to cover) – which we provide
  • 3) Order type – we recommend “market”
  • 4) 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.
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Any discount brokerage like TD Ameritrade or Etrade that charges around $7 per trade is a good choice. Always check to see what specials, if any, they are offering for new accounts. You don’t need to choose a broker based on how close a branch is to you, as it is not necessary to ever visit a branch. All account set up, account funding, ongoing trading as well as money withdrawal, can be handled online or by phone, mail or wire transfer.

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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.

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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.

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First, let’s review the mechanics of how we profit from a stock that appears poised to rise:

  • We BUY it.
  • We HOLD it for a period of time as it rises (during which we are considered “long” that stock).
  • We SELL it for a higher price when it appears to have stopped rising.

In 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. The mechanics of this trade are:

  • We BORROW shares from our broker to SELL immediately at today’s price (”SELL SHORT”).
  • We HOLD it for a period of time as it declines in price (during which we are considered “short” that stock).
  • We BUY shares to REPLACE those borrowed from our broker (“BUY TO COVER”) - at a lower price. The amount of funds we have left over from the original sale proceeds after buying the replacement shares is our profit.

In simplest terms, referred to as “sell (borrowed shares) high, buy (replacement shares) low”.

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Stock Trader Advisory is designed to not interfere with subscribers’ work weeks. 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. During the week, focus on your job, your family. Enjoy life.

Another benefit of weekly trading over daily trading is that daily price swings in the market are smoothed out over the 5-day span. Those swings might have triggered numerous unproductive intra-week trades for a daily trader.

With the rapid pace at which news it disseminated today, a month is a long time – too long – to wait to react, so we consider our weekly trading timeframe to be optimum.

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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. The best-informed, smartest institutional investors are also human after all, and capable of getting it wrong. As they are our guide to trading, when they take their lumps, so do we. 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.

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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.

The “next great stock” quest is the focus of buy-and-holders – since their passive strategy necessitates they find stocks that will perpetually rise. As traders, however, we already have many profitable stocks to choose from, whether they are predominant risers, decliners or oscillate between the two. They aren’t necessarily state-of-the-art high techs or breakthrough bio-techs – just commonplace stocks like Weightwatchers, Urban Outfitters and Etsy.