Frequently Asked Questions (FAQs)
Q: Is your system based on day trading,
market timing, or jumping in and out of the market?
A: No. In our opinion, the only people who
get rich in the long run with day trading are those that profit
by "helping" others to day trade. Excessive trading
leads to higher commissions, higher capital gains taxes, and
a drain on your time. Ours is a low-maintenance process that
lets you have a life away from your computer. Furthermore,
we do not recommend market timing or any other mechanism for
jumping in and out of the market. A subscriber could certainly
implement their own market timing system with our recommended
portfolios. However, being conservative investors, we believe
in being fully invested and staying fully invested. The stocks
in our Primary Stock Portfolio
are held for an average of nearly three years. Most of our
other portfolios also have low turnover.
It is possible to make significant profits
in a short time using our newsletter (for example, we recommended
that our aggressive investors buy $660 of Zimmer Holdings
options; a little over seven months later we recommended the
options be sold for $5,260). However, our philosophy is to
invest for the long run. That means we recommend committing
to investing for at least five years, and most likely more.
That doesn't necessarily mean we hold each stock or mutual
fund for five years, but it does mean that the whole portfolio
be invested for at least five years. The shorter time you
plan on committing to investing, the more it resembles gambling
than investing. We are investors, not gamblers.
There is one exception to the rule, and
that is our collection of Stock
Screens for Short-Term Investing (available separately
from our regular subscription). While doing our investment
research, we do come across a few stocks that are prime candidates
for holding for a month or two. Furthermore,
our subscribers often ask for stocks to buy with cash that
has accumulated in their accounts while waiting for the next
buy signal for our Primary Stock Portfolio. To fulfill your
requests, we have sought to create a list of growth stocks
that are poised to take off in the near future. While the
stocks in the Short-Term Stock Screens may be traded frequently,
we suggest that these stocks be used only periodically for
ensuring that idle cash is put to work to keep one's portfolio
fully invested.
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