In Stockswise, we select depressed stocks or stocks that have made significant retracement after strong bullish moves for Investment Trading. Our system to select these stocks near the bottom of the money belt line is effective as can be seen from the many successful buy signals around the bottom of the money belt line.

In many cases the Investment Trading result will be profitable six (6) months after the buy signals. You can just buy the stocks, wait six month and get out with a profit most of the time. Don't take our words for it, go look at the charts of all the stocks listed in this site.

In this site we used the indicators from Williams %R, RSI, our own "money belt" levels and price setups on monthly charts to generate buy and sell signals on the charts.

Where the technical system feels that the stock should not be held anymore but without going the opposite direction (shorting), a "take you out" signal represented by the "X" will be given in the chart.

We do not encourage shorting of stocks especially by individuals unless you have experiences doing so, therefore when you see the "sell" signal or the "X" label just sell the stocks without going short.

Shorting stocks takes a lot of knowledge and skills. If you really think the stock is going lower in the future and you have checked the fundamentals and our charts have a "sell" on it, then you may want to purchase a "PUT" LEAPS options instead. This is much easier to execute and you know your maximum risk which is the price of the LEAP option itself.

Also, do fundamental checks on the stocks before you buy them especially based on the signals given in this site. As we are targeting depressed stocks just begining their upmoves, don't expect beautiful balance sheets. Just make sure they are not stocks on their way to bankruptcy and that there are evidences that fundamental are improving. Fundamentals like sales revenues, new managements, new product release etc...

Truth be told, our signals are not always correct but when they are, they are beautifull. Don't believe us, go through some of the charts in the site.

All the signals are computer generated and updated on daily basis, so you can see the price performances as they moved on the monthly price bars.

If there is a critical reason for doing so like ...a devastating terrorist attack, a countrywide financial meltdown etc, for crying out loud, please don't wait for the close at the end of the month to get out of stocks.

Finally, again, do your fundamentals and stick to one money management system before your act on any signals from this site.

Acting on "buy/sell' signals.

As we are using monthly charts, you should act on the signals at the stock's closing price on the last trading day of the month. If the signal on the chats is a buy signal and today is the last trading day of the month, then take action and buy the stock on the 1st trading day of the next month and vice-versa for the sell signal.

One important point we want to make is that although we use monthly chart and the signal at the close of the month to get into stocks, to get out of stocks you should sometimes take signal based on weekly closing because sometime the weekly closing may be significantly against you and especially when this movement is blatantly backed by fundamentals then you better act on it and not wait for the signal at the end of the month. In other words, don't be stupid, its your money protect it.

On normal occasion, you should wait for the monthly closing before you act on the buy or sell signals on the charts.

Technical and Fundamental Convergences

Technical analysis (which we am presenting to  you in this site) is just one side of the coin.

Investment is the convergence of both technical and fundamental analysis, when you are using signals from our site , you must also do your fundamental due diligence because if you believe our signal is indicating to you that the stock will be going up in the next six months, you should find out why this is so.

After all Six months is long enough that there must be a fundamental reason why the stock price will rise. Remember you will be using your money, not ours.

Stockswise.com sole purpose is to presents to you, from our point of view using technical analysis, the periods when a particular stock or stocks are especially formulated to move higher in the coming six months or so or when a stock or stocks are showing technical signs that it will move lower in the coming six months or so.

As educated investment traders, you must upon witnessing the buy signals in our charts, find out the fundamental reasons why you should proceed to do investment trading in the stock. There must be a reason, ask your stock advisors or analyst.

The best reply from your advisor before you buy that stock will be that the company is doing something that is increasing earnings and he sees earnings for that company to beat market expectations in the coming quartery reporting.

You have been advised. Best of Luck!

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StocksWise.com welcomes your comments and proposals . All materials received are held in the strictest confidence. If you have additional questions, please e-mail us at ryys@stockswise.com