Trading TSM Stocks ... Michael

Ric,

I have been achieving about a 95% success rate on my TSM trades for the last three weeks, which were the first three weeks of my TSM subscription. I have probably made at least 70 trades over those three weeks. I have told several of my friends about your service and wondered how many more slots you have available in your subscriber list? What I like best about the weekly TSM list is that it has been providing buying candidates even when the market has been trending up, unlike the ETF 2-period RSI strategy (Connors' TPS strategy) which provides almost no buy possibilities when the market is going up.

Michael

...

Michael,

I always glad to see TSM subscribers are using the TSM strategy profitably, whether it be buying stocks or selling puts (intraday or over several weeks).

As you know, I limit my subscription base at any one time to 100 people and give no free trials. I would rather spend time conducting research than managing a large group of subscribers. Currently, I have about 20 slots that I could fill. In addition to being a statistical process improvement consultant for industry, I manage money: primarily trying to get a ~20% annual return in an environment where CDs return less than 1%. To do that effectively, I spend about 20 hours a week conducting research and writing the TSM report. My primary purpose for the TSM report is to share that research. I use your monthly fees to buy the services (Zacks, IBD, Vector Vest, TradingMarkets, PowerOptions, etc.) that support my research.

Ric

Questioning Twitter Posts ... Jeff

Good morning Ric,

As you know, I have been experiencing outstanding results following your suggested plays. I am constantly trying to learn and improve my trading and my understanding of how to best use your service. This past week or so I have attempted to follow nearly all your plays. I'm noticing small differences between your trades and mine, and I'm hoping you can help me understand and improve my fills.

When I see you tweet with the word "sold" at the beginning, I have been taking that to mean you have already placed your trade, and the price you list is your fil price. I then try to match your trade or better. Am I interpreting your tweet correctly?

I'm noticing that the listed prices of your trades in the "Open/Closed Naked Puts" section of the Daily TSM Report is different from your tweet. Example: You may tweet a trade for CREE May 75 @ 2.40 and it will not be listed in the Open/Closed section while a CREE May 70 write and cover is. Second Example: DTG tweet sale at 0.80 is shown in Open/Close at 0.85. Please help me understand how best to interpret your tweets.

On a wish list, I would love it if it were possible to get tweets as you exit Naked Puts. I understand you're busy, and I'm just throwing it out there.

I'm very appreciative of the time you take to answer my questions and the effort you put into your service. I am doing very, very well.

Regards,

Jeff

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Ric Miller's Answer ...

Jeff,

Though I try to tweet my trades shortly after I make them, that doesn't always happen so there could be a lag time involved which accounts for fill differences.

You are correct. When I say "sold," I've actually made the trade.

Since not every subscriber is following me on twitter, I don't include my picks/observations made on twittter in the TSM list of trades. Even if every subscriber did follow my tweets, I wouldn't as it would be just too time consuming. In the TSM Daily Report, I only include those Naked Put (and stock) plays that are forecast in TSM's daily report (none for today but usually one highlighted and one to three other suggested ones).

I will make an effort to tweet my trades closing Put positions, but I cannot promise to catch every one. The official TSM position closing data is updated in the TSM daily report.

Note too, the TSM forecast trades are not necessarily trades that I've taken myself though most are. They could instead be simulated trades, which could happen: (1) if I've already committed my funds allotted to Naked Put positions (my limit is 15 open Naked Put positions); or (2) I already hold a position in that stock (Naked Put or shares, my limit is $30k per position).

Ric Miller