Making TSM Trades - Don Y.

Ric,

Do you have any reading material or suggested reading on how to tell when to take profit on a stock trade? For instance, I took profit with DIS after only gaining $.70 on the same day of purchase, fearing it would not go further with all the bad news out there or that something drastic would happen overnight. How did you decide to sell at the price that you chose? Even if I watch the market every minute, I don't know how my performance can come even close to your theoretical one if I don't sell at something close to your sell signals right? Please advise.

Thanks,

Don
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Don,

As I point out in the TSM daily report, the TSM trades are not necessarily actual trades.
Instead they are possible trades for the forecast stock. Typically, soon after I buy a
position, I put in half position sell points for profit: the first one near the low side of the
profit range and the second above that near prior resistance if possible. Seventy cents was
below the profit range but still a nice intraday gain.

I too was expecting poorer performance last week so I held my contra etfs which lost money.
Most often, the market will do exactly what most expect it not to.


Ric

New to Selling Puts But Made Money - Betsy B.

Hi Ric . . . I am preparing to leave the country and will not be trading while I am away, so I would like to cancel my account.

I wanted to thank you for your awesome service. I really appreciate everything I’ve learned from you and the money you made me. I was a little slow to sell naked puts, but once I did I was hooked. When I come back in six months, I hope you’ll let me back into your “club”. I also appreciate how responsive you were to all of my questions. Your knowledge is vast and it is apparent you are quite a talent.

Thanks again,

Betsy B.

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.
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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