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Our Philosophy

Don't buy a stock unless it is going up!

If it's going up, has good volume, and is breaking out of a downward channel, then buy it because it is likely going higher.

It really doesn't matter what the company does, or what the fundamentals say, or which analyst said what. At Tactical Trading Outlook, we concentrate solely on price movement.

Some folks want to buy XYZ at 10 and sell it down the road when it hits 20. That would be great, but if it takes six months or six years for the stock to get from 10 to 20, then it does not do you a whole lot of good. It would be really awesome if we could buy it at 10 and sell it at 12 in a week or two. That is what we are after, and we try to do it time and time again. There is much less risk this way.

We monitor a large numbers of stocks so you don't have to. Every day we present a list of the best candidates to follow through on a breakout move, should it occur. We have a lot of stock ideas that never go anywhere, even if they have been identified as a trading candidate. The key is that they simply remain ideas, and we don't waste time and resources trading them. We wait until a stock is actually on the move.

Know your target ahead of time

We want to buy stocks that are going up. We also want to sell them when they either stop going up, or fall back down to a protective stop point, or best of all reach a target price. That's right, a target price.

Our targets are not aggressive. Most of the time, our target price is 20% above the entry price. Why only 20%? Because we have studied the price movement of 5,000 stocks over a 10-year period and found that when a good move occurs it only travels about 25% from a reasonable breakout point over the course of a few weeks. With a target of 20% we are highly likely to get an exit when the gains are there.

We have protective stops to keep us out of trouble. Some people think you have to be invested all the time. We think that it is better to be invested at the right time and out at the wrong time.

Don't fight the tide

Which stocks should you have traded on the long side in the first two months of 2002? We could look at the charts and find the ones that went up the most and then say, "here is the list of stocks you should have traded." But let's be reasonable; the market went down in the first two months of 2002. The answer is that you should not have traded any stocks on the long side in the first two months of the year, because the trend was down and stocks were going down. You might have gotten a few good ones in there but you were fighting an outgoing tide.

The old adage is true: A rising tide lifts all boats. If we buy the strongest stocks that are breaking out when the market is going up then the odds are stacked in our favor.

Tactical Trading Outlook will keep you synchronized with the direction of the market. Once you know the tide is coming in, then you know it's time to buy. We all know there are no guarantees, but if we buy strong stocks breaking out of strong formations on substantial volume -- in a rising market -- we will make a lot of good trades.

Index trading

We also have index trading for the Nasdaq 100 (NDX) and the S&P 500. You can trade the QQQs based on the NDX System, and trade the Spiders (SPY) based on the S&P 500 System.

The trading systems for both are similar, which makes sense since 65 of the stocks in the NDX 100 are also in the S&P 500. With these systems, we identify a "short point" and a "buy point." These points are recalculated every day. When an index moves up and through a buy point, we go long. If an index trades down and through a short point, we go short.

We have specific instructions for each trade on a daily basis, and trades generally last just a few days. Again; the time frame is based on the best window of opportunity. We could hold the trades longer, but then instead of making 3% or 4% in a few days you might make 3-6% in a few weeks. Our philosophy and experience holds that being in a trade is inherently risky, so only be in a trade when circumstances are most in your favor.

What you get as a subscriber

Our market calls will keep you in sync with the market. Our index trading is quick, easy, and profitable. Our stock trading is dynamic and opportunistic. Whether you want to trade every day, or just time your mutual fund purchases better, we will keep you on track with the market.

Risk Disclosure