Frequently Asked Questions

Market Lab Report
I'm a real newbie. Can you provide some constructive suggestions on trading my account?

Q: I'm a real newbie. My first taste of earnings with your system was Apple which skyrocketed then plunged. Although I had it at a good price, I sold then next day from fear. I also thought I had good pocket positions in both Amazon and BIDU, but when I saw the earnings coming, I sold out and missed the move. Swearing not to do this again, I held ALGN into earnings and lost 2,700 USD over night -- a big loss for me at this time. So the whole earnings season has been, I hope, seasoning. Frankly, I don't think it very safe to play pocket pivots during earnings when I don't have access, at least I believe I don't, to overnight markets or to all the best information.

Lastly, since I came to your service in late September, I've become more confident about the long-term picture. However, in the short run I have made many mistakes and gave back about 60% of what I gained in September-- I confess. Learning and adjusting to new styles in the middle of a ripping bull run is not to be advised. So, I'm in many ways waiting for a new trend to develop during which I can hone my skills more systematically.


A: Since you are in the midst of working out your trading strategy, we would advise investing only 10 to 20% of your investment capital until you can show to yourself that you are profitable for at least a few months. Then increase the percentage you are trading in the market to maybe 50% then 75% then 100% over time. You will also work out any trading limitations you may have, such as not having access to some information, so you can adjust your trading to this limitation. Keep in mind that many mistakes will be made as this is an important part of the learning process, so it is better to pay this "tuition" by trading with a smaller percentage of your investment capital.

Published: Oct 31 2010