Better Understanding the TSM Strategy -- Jerry F.

Ric,

After some hit and miss observations from your site and maybe not enough understanding of your program I believe I will start selling puts this Monday starting with GMRC. My first trade way back then was selling some BP puts and I did very well.

What would be a good starting point to gain a better understanding of your the TSM strategy. I believe I learned more by reading and attempting to understand it simply by going over your "COMMENTS"section. It's an education by itself.

Thanks,

Jerry F.
____________________

Jerry,

The triple screen approach is not difficult to understand. It's simply an approach to buying fundamentally
sound stocks that still have value left in their price.

I run ~30 screens on Sunday (IBD, Zacks, Vector Vest, Value Line, TheStreet.com, Morningstar, Forbes,

etc) that are fundamentals based and require multiple screen membership to narrow this list from

~10,000 stocks to about ~1,000. I then use the next 2-year PEG ratio to qualify value and that takes the

list to ~300, then price and volume criteria to reduce that list further to ~200. This final list is the best of the

best, those stocks that institutions want to hold. During the next week, this list is the only set of stocks
that I trade that week.

Having cleared these stocks for their fundamentals, during the week I look for their pullback to major levels

of support (20-/50-day moving averages, prior highs or lows) where I can buy. Statistically (and I'm

a professional statistician), buying stocks in pullback is far more profitable (and less risky) than buying

stocks breaking out. .

Each of these buy recommendations comes with suggested profit targets and set in stone stop losses based

on half-position sizes. My goal is to make at least one recommendation in each daily report.

That's the heart of the program. It's simple and profitable. Note, the statistics I present are based on optimal

outcomes from these TSM forecast trades, not necessarily actual trades, though I do make many of them. Your

results won't be quite as good, but the system consistently turns out +70% winners (+90% for the past two

quarters).

In addition to the above, I also recommend a short-Put strategy for these stocks as a strategy to invest cash

at ~18% targeted return. Of the 100s of Puts available for TSM stocks, only a few make the TSM criteria

(>18% annualized return with from 5-15% downside risk protection). Possible trades are provided in the TSM

daily report, while my actual trades are reported intraday through a protected Twitter account. I would recommend

you read the free reports linked from the site that goes deeper into the short-Put strategy if you're interested..

Ric Miller, Ph.D.

6-Sigma, Master Black Belt