Take away #1

Invest 1/50 of capital in each position no matter what stock price is at.


Take away #2

The portfolio is volatile from day to day. Paper trade to get used to it before taking up all the positions.


Take away #3

The strategy weeds out losers early and keeps winners longer.

 

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 40 to 60 positions. Occasionally the number of positions is out of this range.

Q. How is each position weighted in the portfolio?  (back to top)
A. Each position is weighted equally. We invest 1/50 of the account capital in each position, regardless of shares prices.. We use margin on infrequent occasions when open positions are more than 50. Most of the time, the account holds some cash when the outstanding positions are less than 50. We invest cash in money markets.

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

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

Q. Should I start with all the open positions or should I build up my portfolio gradually 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 trade 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. The 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 accounts. Please consider your brokerage fees.

Q. Which stock brokers are better suited to 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 for less than 200 shares 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 our email notices so that you can archive every signal and verify our records 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. 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. Actual trades and back-testing of the strategy 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 downturns. 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 a warning signal. We also back tested with different markets around the world.

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.