How many Buy/Sell signals will I get per day?
It all depends on the market that day. Some days you will get several signals, other days you will get 1 or 2 signals and occasionally there will be no signals on a given day.
What % of the "Buy" Signals are Profitable Trades?
As of this writing (May 1, 2012), there have been 90 trades since December 22, 2011 (when we started tracking trades for this signal service). 58 of the 90 trades were successful for a 64.5% success rate (over the past few years, Bob has averaged about a 75% success rate on his trades). TRADER members can download a spreadsheet showing all of the trades from the member website. Please read the legal disclaimer at the bottom of this page. We are NOT financial advisors or registered broker-dealers, our results are NOT TYPICAL and past performance is no guarantee of furture results!
What is the % gain on the average trade?
Of the trades since December 22, 2011 (see details above), the average gain per trade (including the losers) was 2.39% for an average annualized return of 92.9%. TRADER members can download a spreadsheet showing all of the trades from the member website. Please read the legal disclaimer at the bottom of this page. We are NOT financial advisors or registered broker-dealers, our results are NOT TYPICAL and past performance is no guarantee of furture results!
What is the average hold time for the trades?
Of the trades since December 22, 2011 (see details above), the average hold time for each trade was 7 days. TRADER members can download a spreadsheet showing all of the trades from the member website. Please read the legal disclaimer at the bottom of this page. We are NOT financial advisors or registered broker-dealers, our results are NOT TYPICAL and past performance is no guarantee of furture results!
How can I trade all those "Buy" signals?
We don't expect you to trade every signal. Trade according to your own comfort level and personal risk tolerance. Every investor has different needs and goals. For example, Bob is a full-time trader who trades for a living. He pulls his living expenses out of his trading account weekly, so he often takes short-term trades including day trades. Steve trades primarily in his retirement accounts (IRA's) so he has a longer time frame, prefering to hold at least a few days and preferable a few weeks or more. Bob trades a wide range of stocks while Steve prefers to trade only in a small handful of companies that he knows very well. There is no "right" or "wrong" answer. Choose the trades in the stocks you like (for whatever reasons) and ignore the ones you don't like. It is virtually impossible to trade ALL of the signals, not even a full-time tradere like Bob does that!
How do I know when to sell?
Again, this is a personal decision based on your investment goals and personal risk tolerance level. Investors sell for many different reasons: 1) To take profifts. 2) To raise cash for other stock trades. 3) To cut losses. We will not necessarily give a "Sell" signal for every stock on which we have given a "Buy" signal. Therefore, it is up to YOU to have your own exit strategy for every stock trade that you make! Bob will typically give a suggested "Stop Loss" price when he gives a "Buy" signal, but it's up to you to decide whether you want to use that Stop Loss price or not. You must also decide if you plan to use a "hard" stop with a stop order entered with your broker or a "mental stop" to sell the stock if/when it hits the suggested stop loss price. You should also have a mental profit target in mind so that you know to sell some or all of the stock if/when you hit your price target.