How to use STOCKWINNERS.com information

Please read the important disclaimer at the bottom of this page.

Please remember that Stockwinners.com has never featured penny stocks. People have a better chance of making money at a slot machine than in penny stocks. Please exercise caution if you trade in these stocks. Do not get burned.

Most Stockwinners.com subscribers realize that the stocks in each of our major selection categories tend to develop a little differently from those featured in the other categories. The question we hear most frequently is, "How do I play each kind of pick?" The summaries below present the basic considerations behind each category and suggest methods by which each might be played. There are several basic considerations that hold for all:

It is frequently best to delay establishing morning positions, until market opening volatility has passed. Waiting at least 30 to 60 minutes is normally a good idea.
There is a 1 to 30 day time frame associated with each of our selections. Prices are expected to rise within that period, but movements might be volatile.
We issue stop-loss levels with each equity pick. Please note these prices and consider selling your position if the stop-loss is violated.
We rarely issue price targets. As a rule of thumb, we feel that it is best to take profits when a position has gained ten or more percent.
Be aware of market conditions, before you take a position or exit one. Please use common sense and good judgment.
When trading equities, it is best to use "Limit Orders" rather than "Market Orders". In that way, you will not be a victim of volatile market movements. Be disciplined. "No trade" is always better than a "bad trade"! Please see Figure 1 below.

Active Traders

This page is for our more active traders. The section features "hot news" and up to the minute information that could potentially move a stock price. The page is automatically refreshed. We recommend that our active members log into this page and leave it on during market hours. If you play any of the picks in this section, be ready to lock in your profits. While many issues are featured for their intraday potential, some could be kept for a few days.

Daily Picks

Each morning, we feature one or more new stock selections on our "Today's Picks" page. We present company descriptions, recent company news, basic business statistics and technical analysis for each stock.We stress technical analysis of stocks selected for posting in this category. These stocks tend to rise over a thirty day time frame. For many, the greatest portion of the gains are realized within seven to fourteen trading days. Daily Picks tend to be our most conservative selections. Many are suitable for inclusion in long term portfolios, but they are not selected with that in mind.

The Rumor Mill

We receive hundreds of rumor-quality stock stories every week. We examine each one, in an attempt to determine which of them have a good possibility of being true and ultimately influencing the price of the stock in a significant way. We also search through SEC filings to locate various filings that may effect stock prices. We present company descriptions, recent company news, basic business statistics and a summary of the rumor in question. Once a rumor about a stock becomes widely known, the issue can become a momentum play. On average, the greatest portion of our rumor stock gains are realized in ten to fourteen trading days. Take profits, when the issue gets its pop. Do NOT chase rumor plays. Anticipated stock splits fall in this category.

Momentum Plays

We follow stock market developments closely, throughout each trading day. Often, conditions warrant equity plays of a short-term nature. Breaking news, for example, can cause big swings which can be profitably traded. When we encounter such possibilities, we quickly examine the stocks in question for hidden traps. Should none be apparent, we present the situation to subscribers for their consideration. On average, the greatest portion of our momentum play gains are generated within one to ten trading days of our alerts. These plays normally feature the stocks of solid companies, but they still involve more risk than those in the categories above. Once a stock loses its momentum, get out. Stocks in this category can fall sharply in price, once their momentum is lost.

Option Picks

Each day, we feature four options on our "Option Picks" page. Both calls and puts are carefully chosen on the basis of technical analysis and pertinent news. The ratio of calls to puts selected is determined by general market conditions and by issues pertaining to the stocks in question. The choices are useful as both stand-alone vehicles and as hedges of previously established equity positions. Although the options selected are those with the most promising one to thirty day outlooks, the greatest portion of the gains tend to be generated within four to ten trading days. Please be particularly careful with options. They represent High Risk. You could lose all of your money. FAST!

 

Figure 1: Most of the time, a market order will get executed at an inflated price

 

NOTICE:

The recommendations and information provided on our web site should not be interpreted as investment advice, or as an endorsement of any security. Remarks and data are for informational purposes only and are provided without warranty of any kind. The trading of securities may not be suitable for all potential users of this information. You, not STOCKWINNERS.COM, INC. assume the entire cost and risk of any investing and/or trading you choose to undertake. Remember, past performance does not insure future results.

 
  Suggested Readings  
  Technical Analysis of Stock Trends; Robert D. Edwards  
     
  Trading Rules : Strategies for Success; William F. Eng  
     
  Investment Psychology Explained: Classic Strategies to Beat the Markets; Martin J. Pring  
     
  Getting Started in Options; Michael C. Thomsett  
     
  The Conservative Investor's Guide to Trading Options; Larry McMillan  
     
  The Disciplined Trader: Developing Winning Attitudes; Mark Douglas  
     
     
   
     
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