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Questions on Active Trading Global Daily List

Do I buy at the ENTRY price on the list?

The entry and stop prices are suggested prices only. It is up to you to decide on the most favorable entry. For example, assume stock ABC is a BUY in today's list, and we recommend an entry price of 4.6 . Now, if tomorrow stock ABC opens at 4.7 and quickly pulls back to 4.5, then you must be patient and wait to determine the market direction for this stock. Often, you'll find that stocks on our list will move in the predicted direction but sometimes they may move against our signal. Take advantage of this if you can tolerate the risk and try to get in at even a better price than our recommended entry. We do not recommend putting advance orders at night since the risks are much greater. Also, if something is obviously wrong with the stock (due to new information that was not known the day before, such as a profit warning), then avoid the stock completely.

When do I sell?

We provide entry and stop points only. After a position is taken, we recommend our subscribers to "trail" the stock price rather than taking profits at arbitrary points. In other words, just move the stop price up as the price moves; this way you keep the position open and maximize profits. Stops are good since they'll take you out if the price turns around and minimize your losses.

What does a SELL on the list mean?

The SELLs in the list are "brand new" SELLs (or SHORT SELLS). They are not sells for the stocks purchased from BUY signals. The SELL signals are generated just like the BUY signals, daily by our computers. There are three things to do with a SELL signal:

SHORT the stock (not recommended for new traders since losses are unlimited)
If you happen to hold a stock that has a SELL signal, you may SELL it
If you don't have that stock already and you are reluctant to "SHORT SELL", than just ignore the SELL signals

The choice is up to you and your risk threshold. If you're holding a stock that is in our SELL list and if you're already up appreciably (say 15-20% or more), you may want to take profits immediately. This way, you protect your profits but the down side is that if the pullback is short lived and the upward move continues, you'll be missing out.

It seems I am carrying some trades overnight. How do you protect yourself from a large drop in the first minutes on the next days opening?

This really depends on the stock. Sometimes a given security will exhibit extreme volatility (due to a news release, offer of warrants, additional dilution, financial statement or a new product). Whatever the reason, if you believe in what the company does and you did your research before buying in, you can relax the stop point to allow the stock to react to the news. You can carry positions overnight as long as you are familiar with the trading patterns of the stock. Technology (and biotech) stocks tend to be more volatile than, say utilities or financials. So, if you're in a "popular" technology stock and you like the company, you can put a stop at 15% of the current price tonight. Some traders use only mental stops; to do this you must know what you're doing and be ready to see paper losses larger than 15%.

Are your recommendations based solely on technical analysis or is there access to other information?

Our lists are generated everyday from a pre-programmed list of technical criteria. One such list is generated for each exchange as soon as closing data becomes available (usually by 6:30-7:00 pm CST). We do not have access to any other information. The BUY and SELL signals are nothing more than a result of a series of mathematical calculations. We have no opinion on stocks that appear on our daily lists. Although in order to make it to our list, the stocks are filtered through a number of technical analysis criteria, we always recommend our subscribers to do their own research or consult a financial advisor before taking positions.

Are all your sell recommendations available to short?

We cannot guarantee there will be shares available for shorting, you'll have to check this with your broker.

On day ONE you recommend a BUY at 5.75 with a STOP at say 5.35. On day TWO you recommend a BUY for the same equity at 5.35 with a STOP at for example 4.85 . If I buy on day ONE's price should I change my stop to the STOP price recommended on day TWO ?

Sometimes, the same stock may appear in our list on consecutive days with different suggested ENTRY and STOP points. For example, a stock that our computers pick because of an "oversold" indicator, may continue experience further price drop. Although, the subsequent price drops are not as significant, it is still disturbing that a stock you bought continues to decline. In such a case we recommend you to stick to the new STOP point. Most likely, you will have an opportunity to exit your position with a profit in the next few weeks. Alternatively, you can put a stop-loss once the price exceeds your entry by an amount that you're comfortable with.