Frequently Asked Questions

What is A+ Stocks?
How many positions are usually held in the portfolio?
How is each position weighted in the portfolio?
How frequently do you look for trades?
How many trades can I expect?
Should I start with the open positions or should I build up portfolio by daily signals?
Why do I see more losses at the beginning of portfolio building?
Does A+ Stocks use stop to protect each position?
How big does my account need to be?
Which stock brokers are better suited to the A+ Stocks?
How do I access A+ Stocks?
Can you describe this methodology you use to find your trades?
How can we use the A+ long term market indicator?

Q. What is A+ Stocks?  (back to top)
A. A+ Stocks is a strategy selection tool for finding stocks with high-probability of significant return. It not only takes into consideration the technical performance of the stocks, but also takes into consideration the relationship of the stock price performance vs. forecasted future earnings performance. It also builds in some risk management and portfolio management criteria.

Q. How many positions are usually held in the portfolio?  (back to top)
A. Our portfolio usually holds 20 to 30 positions. Occasionally the number of positions exceeds 30.

Q. How is each position weighted in the portfolio?  (back to top)
A. Each position is weighted by invested dollar amount, regardless number of shares or share prices. We invested 1/30 of the account capital in each position. We use margin on the infrequent occasions when open positions are more than 30. Most of the time, the account holds some cash when the outstanding positions are less than 30. We invested cash in money market type investments.

Q. How frequently do you look for trades?  (back to top)
A. A+ Stocks look for trades for the next trading session on each of those days when US stock markets are open. Signals are posted on the web and sent by email at around 10pm on the day before the next trading session if there are favored trades.

Q. How many trades can I expect?  (back to top)
A. Number of trades depends on the market conditions. On some days, we do not have any buy or sells. On some days, we could have three trades in a day.

Q. Should I start with the open positions or should I build up portfolio by daily signals?  (back to top)
A. We suggest buying all the holdings in a portfolio at the same time. This way, the up and down of various positions can cancel each other. The portfolio is volatile on the day to day basis but is consistent annually. Please paper trading first to get used to it.

Q. Why do I see more losses at the beginning of portfolio building?  (back to top)
A. The strategy includes some money management principles. It weeds out the losers early on and keep winners longer. The strategy will reward the patience with very high returns on some stocks.

Q. Does A+ Stocks use stop to protect each position?  (back to top)
A. No. Portfolio is reviewed each night. Built-in diversification reduces the pain of individual position's loss.

Q. How big does my account need to be?  (back to top)
A. A+ Stocks will be most efficient for account size of more than $3,000. It can also be used for smaller account. Please consider your brokerage fees.

Q. Which stock brokers are better suited to the A+ Stocks?  (back to top)
A. Some brokerages offer deep discounts to the frequent traders. Day trading community is good place to start discount brokerage research. Among the main street brokerages, Interactive Brokers offers $1 per trade regardless trading frequency.

Q. How do I access A+ Stocks?  (back to top)
A. The website is updated every evening. We recommend you subscribe to the email notice so that you can archive every signal and verify yourself.

Q. Can you describe this methodology you use to find your trades?  (back to top)
A. Our research has gone through a very rigorous analytical process. The methodology includes proprietary
enhancements to existing technical and fundamental market analysis. As an example of one of the enhancements, we believe that word is cheap and action matters on Wall Street. We compare stock prices to the forecasted future earnings. Contradictory to popular wisdom, we are not looking for undervalued stocks. We look for proof of forecasts through stock price and volume.

Our enhancements offer the user an even greater benefit. Actual trades and back-testing of the enhancements over the past six years has demonstrated that those signals consistently point to higher profits comparing the market.

Q. How can we use the A+ long term market indicator?  (back to top)
A. The A+ indicator is used to forecast stock market severe downturn. It was started in the late 1990s. It was seriously studied during the 2001 to 2003 market downturn. At the beginning of 2008, it flipped the switch and generated warning signal. We also back tested with different markets around the world. We believe it does have value in forecasting the several market downturns for the future. It is not part of the A+ Stocks, and we post it for the viewer's benefit.

Wealth is built by avoiding big losses. For those who are more comfortable in investing when market is positive, please wait when the indicator yields positive signal. The signal will help you catch the upside opportunity when it is here.