Frequently Asked Questions
We have been swamped with emails asking us various questions. Our web staff added this page to make available the questions and answers that we felt would be of help to you.
Q: Why do you send emails in the morning? I live in California and I have to start trading at 6:30 am if I want to place a live order.
A: We do our technical analysis right after the market closes. All we need are the closing prices of stocks, bonds and commodities. However, our fundamental analysis takes place right up until the last minute. This can be between 7am and 9:30am Eastern Standard Time. The Chicago Bond Market and some economic indicators start at 8:30. We can however send you our newsletter at night.
Q: Your site isn't up to date about past performance.
A: Our daily email service recommends about 15-25 options per week. Our computers have combined for a 72-88% Hit Rate, with average returns of 50% or better within 30 days of the contract open. We do have losing weeks, but not very often. In 2002, we've had 52 weeks of trading. We had only six losing weeks in that time frame. Ten of those fifty two were 80% winners. We have some contracts that go six months out. So we usually have a lag time of six months before we post them.
Q: Your site has a very Bearish sentiment. Do you only pick put options?
A: We only call the market as we see it. The technical and fundamental analysis both point to a bear market. If it looks like a bear and smells like a bear, it must be a bear. When the market looks like a bull, we will call it as such. We do pick some calls when we see a stock with the "right stuff."
Q: Why do you have such a negative view on the economy? Everyone says it is starting to recover.
A: Unfortunately, "everyone" doesn't have your best interest in mind. They are trying to get you back into the market on every Bear Rally. See our Special Report link above to see more in-depth reasons why we have the present view of the market.
Q: I signed up for your free email. I received option picks every day for a week. I paper traded them. I noticed that some picks made money within a few days. Others made money after about 3 weeks. How long do I hold the contracts before I sell them?
A: The free email is the same one we send to our Gold Subscribers. These contracts are meant to be traded in 0-3 weeks. Some will make money in a day or two. As you noticed, others will show a profit after a few weeks. If you placed a 30% trailing stop on every one as we suggested, you would lock in profits and limit losses. As your contracts start to show a profit, move your trailing stop up to keep the profits you make.
Q: Why don't you have an 800 toll free number? Why do I have to pay to call your company?
A: We did have an automated toll free system for the first two years. Do you want to talk to a machine? We hate when we call a company and we get to press number after number in order to speak to a human being. When you call us now, you will get a person immediately. That person will know what they are talking about and can answer any question you may have.
Q: How are your returns so high. I find it hard to believe.
A: We work every day, seven days a week to keep our system "tweaked". We make sure some of our picks hit a grand slam, 500% profit, every month. Our trailing stop system of exiting a trade limits our losses and lets our profits run. We also trade every recommendation we offer. If you lose money, so do we.
Q. Why don't you offer autotrading?
A. We want you to have some "hands on" with your trading. Don't let your Broker and the "Market Makers" cut into your profit. Our trades are simple to make and don't require you to be glued to a computer all day. Place a limit order before the market opens, even the night before. Then, once you have purchased the options, place another order for your trailing stop.