| SPECIAL FREE OFFER |
| January 2, 2005 |
| Please read the descriptions below before you try out the 2 SPECIAL FREE TRIAL OFFERS to these Excellent sites featured on Jan 2nd. The Usernames/Passwords appear in the SITE WATCH SECTION of the Weekend Report Jan 2nd page. Breakout123.com Daily updates are posted every trading day by 9:00 PM EST except nothing comes out on Fridays. New list comes out every Sunday night by 8:00 PM EST. In addition to the daily updates on CURRENT PICKS, please check every Sunday night (as this is updated once a week) for updates on the CURRENT MARKET CONDITIONS link in the Members area and the commentary there under the list of the top leading breakout stocks. Please note the information we provide are NOT recommendation rather they are potential breakout candidates. If the subscriber is not 'savvy' in the markets - we highly recommend you follow strictly the steps we outline directed at "conservative investors" in our updates. Most people are conservative investors - they just don't know that yet. For DAY-TRADERS and SWING-TRADERS, we assume they know what they are doing and as such we offer the buy-stops and suggested stop-losses. Where and how they close out profitable trades are left up to each individual. Many traders say that they place a sell-stop as soon as their buy goes up 3-5% from their buy prices. Others close out the trade in the last hour of trading. The sell for profit decision is up to each trader. Such short-term traders can pay attention to the list called "Scalper's Choice" - which may or may not change daily (Sunday Through Thursday) at 9:00 PM EST. We, ourselves do not recommend short-term trades. But some folks believe they can beat the market by scalping. Since we cannot customize the list to suit each one individually, we offer enough prospects to cover all kinds of traders. From experience spanning decades, over-all odds of winning by scalping is not as good as waiting for your true solid wins. For CONSERVATIVE INVESTORS: Best odds are with and a simpler approach is (remember - in the market simplest decision making is the best decision making) to limit oneself at the very outset to say that no more than 10-20 stocks as buys will be ever attempted in any given year. Out of the ones attempted, it is with reasonable odds we can state from experience and from the experience of others spanning over a 100 years that 50% or more will prove to be "false" moves. It is the other 50% or so that will prove to be the serious movers. It is these set of handful of select movers that will make the year's performance on one's portfolio. How to improve one's odds to latch to such serious movers? The rules have been stated and restated (and available in the link to Current Market Conditions in the Members Area once you login). How effectively can one discipline oneself and learn from past mistakes will be the key to long term success. The pitfall arises when one is making "on the spot" decision as at the moment of a breakout attempt - every breakout looks absolutely great! The key is will it turn out to be a great breakout 3-9 months post breakout? To be ready before hand with most of the criteria in place and then the final decision based on the breakout day price/volume action is the key. We talk about breakaway gaps many times in our commentaries. Breakaways have better than 50% shot at making a move. Bear in mind that a true breakaway shows its highest one day volume in history on its breakaway day as well as the breakaway is to ALL time new price highs, not some arbitrary 52 week or 104 week new highs. And as a result should one be willing to withstand some shake, a true breakaway would be the one to offer some extra leash on. Again, it has been suggested that cut loss at 5% below buy price for half the buys and 10% below buy for the balance of the buys..assuming there is loss of conviction post-breakaway due to price/volume action or lack of buying support by the people-in-the-know at trend/support lines etc. If true success is reached by being so picky - why then are so many potentials on every week? Well, two reasons. One - as mentioned in prior commentaries, our readership covers a wide array of personalities and among our readers many wish to have presented as many potential breakouts as possible. Without the ability to customize the list to suit each and every individual, we have to arrive at some mix which meets most of our readers' common interests. Second reason - when we have a good set of potential breakouts in front of us - their action and post-breakout successful moves are paramount to "feel" the market conditions and figure out which sectors show strengths/leadership etc. We do rate those stocks that meet most (if not all) of our required criteria with ***** (5-star). But this has its own pitfalls - among them (a) our bias will show in our interpretation of the stocks selected which may or may not be in line with reality (b) usually when a short-cut is offered to most humans they will take it without any incentive then to put forth their own work in (c) each individual is different and how one trades or not and what decisions one makes will make or break the trading account - which has nothing to do with stock-picking. Stock picking is important but the right decision making is even more important. (d) There may not be stocks that meet the criteria for weeks and that does not mean other stocks that do not fit the criteria will not move and further if one sees a stock that does not meet the criteria move and the one that meets the criteria not move - it will more likely than not entice the reader to break many rules and thus lead to bad decisions (e) just because a stock meets the criteria does not mean it will be tradable or a winner. However, from experience best odds are with those 5* stocks that fall into any one of the TOP THREE positions on the list. So a truly conservative investor will wait until there is a 5* stock that falls within the top 3 positions on the list and then endeavor into to the market one step at a time. HighVelocityStocks.com New list comes out every Sunday night by 8:00 PM EST. TRACKING CURRENT MARKET CONDITIONS: It is imperative that the user print the RULES/TOOLS/GOALS page on this website and have it handy and FOLLOW each and every rule on that page. The rules will automatically take you out of a bad market (a bad market is a market where conditions are clearly in a downtrend or are in a choppy trading range where any significant gains are a very low odds proposition) and keep you in the right stocks in a good market. The entire system is designed to be mechanical and at the same time prove or disprove whatever market conditions may be touted to be by so-called pundits. The market is the only pundit one needs to pay attention to. If 3 or 4 consecutive stop-losses have been triggered - as the RULES state - the market conditions are not ripe. On the other hand, if 2 or 3 winners show and move to make a pyramid buy then the market conditions may be right. Each and every rule on the rules page has equal weight and one must bear the rules in mind without fail. Unless the RULES on the rules/tools/goals page are followed to the tee, the system will not work. We highly recommend reading the recommended books at least once every year. This system depends heavily on waiting for the right time for the right stocks (we call it being self-disciplined and patient). Our goal is to wait and wait for the winning coups. If it means waiting for months for the time to be ripe and the right stocks to show, then that is what the market demands to be really successful. After all the true goal is to land a handful of the real winners and to do that one has to be self-disciplined and patient. Self-disciplined to follow ALL the rules and patient to wait for the time when the rules will put one into the market and into the right stocks and be in there until the stops take one out. If the system is not working (in other words, if recent most 10 weeks (50 trading days) have not shown at least 2 winners and subsequent pyramid buys), then cash is probably the best position to be in. The market is telling us that when the so-called the best-prospects cannot make gains then the market will most likely not be able to offer gains. The beauty of making one's initial test-buy entry a small amount is that if the time is not right or if the stock is not the right stock (since the goal is to be in the right stock at the right time), the small test-entry will be stopped out but the loss would be insignificant compared to the trading capital that will be needed to tap into when the right stock at the right time shows up (as they always do to the patient and the self-disciplined). |
| Los Angeles | CA | 90034 |