| Q: |
"What is swing trading?" |
| A: |
Swing trading usually is best described as a "short term" trade. While not as hectic or dangerous as daytrading, swing trades are trades that usually last from one to seven days. Historically, the average swing trade issued on Trade4Wealth.com lasts three to seven days. You can view all of our past trades by clicking on "Past Results."
|
| |
|
| Q: |
"You trade the DIA. What is the DIA and why did you pick it?" |
| A: |
The DIA is an "Exchange Traded Fund" which can be bought and sold like any other stock through your existing brokerage account. It is a Dow Jones Industrial Tracking Stock, intended to provide investment results that, before expenses, generally correspond to the price and dividend yield performance of the Dow Jones industrial Index. Simply put, buying 100 shares of the DIA is similar to buying 1 share of each of the top Dow Jones industrial listed stocks. This is very preferable to us -- because trading the DIA is much safer than trading any one stock. Remember Worldcom and Enron? That's why we prefer not to trade an individual stock.
|
| |
|
| Q: |
"What's the smallest amount of money I can do this with?" |
| A: |
In theory, you could open an account with $100 and only trade one or two shares of the DIA. However, you would likely lose money because your profits would not be more than the commissions paid to your brokerage. Every trader has a different level of comfort. But as a general rule, you should never risk more than 5% of your trading account on any one trade. All of our signals use a 2% stop loss to ensure you never risk too much on one trade. Remember that you will have losing days. Make sure you never risk too much on any one trade. To successfully trade any mechanical system such as ours, you must be able to afford successive losing days and still have enough money to trade even after losses. For your convenience, our "past results" shows you how much you could have made trading different amounts of the DIA.
|
| |
|
| Q: |
"Do you trade the system yourself?" |
| A: |
Of course! We trade these signals every day with our own money. Our staff is profiting from the very same signals we provide you. However, remember that we are not giving you investment advice. We simply provide you with information that we also use to generate profits for ourselves. Your trading decisions are your own. It is always sound advice to do your own research. (Because Joe Krutsinger also consults for many large financial institutions, he is contractually prohibited from trading himself.)
|
| |
|
| Q: |
"I just subscribed to Trade4Wealth.com. When should I start trading?" |
| A: |
When you subscribe, you will be able to see the current trade that we are in. Often, you may be able to enter our current trade using a limit order to ensure you are filled at our entry price (or better). If you are uncomfortable doing this, we recommend you wait until our current trade closes out. You can then begin with our very next trade! Some people believe in waiting for a losing trade and will then begin trading after our next loser. (The theory is that your first trade has a better chance of being a winner that way.) While this is a sound concept, you may lose out on many winners while waiting for your first losing trade.
|
| |
|
| Q: |
"I don't trade a $10,000 account. What if I am only trading a $2,000 account?" |
| A: |
All of the results on this website are based on a $10,000 account. You can trade a larger or smaller account. Your percentage return will be the same no matter what size account you trade! Simply divide your account size by the current price per share of stock symbol DIA to determine how many shares you should trade. For example: If you are trading a $2,000 account and DIA is trading at $88 per share, then you should trade 22 shares. ($2,000 / $88 = 22 shares)
|
| |
|
| Q: |
"Why do you always use the daily opening as the fill price for a new trade? And what do I do if my fill is slightly different?" |
| A: |
Whenever we issue a new trade, it will be a "market on opening" trade. We issue these trades the night before so our subscribers can place their orders before the market opens. The market open is the most liquid time of day and therefore the easiest time to get filled. It is our experience that our orders always get filled within a few pennies of the opening price. Even if your fill is slightly different from our posted opening price, you should still set your stop to exactly match our signal so that you are always in synch with our system. This is how we trade our own accounts and it has been very successful.
|
| |
|
| Q: |
"How will I know to enter a trade?" |
| A: |
We update the website every evening, after the market closes. As a subscriber to our service, you will receive an email each evening after the we post the next day's trade. Once the next day's trade has been posted, you can log in to view the signal at your leisure. All new trades will look like one of the following:
Buy XX shares of DIA at the market price when the market opens. Use a 2% stop loss.
Sell Short XX shares of DIA at the market price when the market opens. Use a 2% stop loss.
|
| |
|
| Q: |
"How will I know to exit a trade?" |
| A: |
While we always set a stop loss of 2%, we do not set profit targets in advance. Each evening, after the market closes, Joe optimizes the signal and then posts an update on the website. As a subscriber to our service, you will receive an email each evening after he does this. Once the next day's trade has been posted, you can log in to view the signal at your leisure. All exit signals will look like one of the following:
NO EXIT - Hold current open position
Sell XX shares of DIA at the market price when the market opens. (closes a long position)
Buy to cover XX shares of DIA at the market price when the market opens. (closes a short position)
|
| |
|
| Q: |
"How do I know your system will keep working in the future?" |
| A: |
Simply put, there are no guarantees. Trading always involves a risk of loss. However, Trade4Wealth has an excellent advantage that many other systems lack. First of all, you'll have Joe Krutsinger personally providing the signals every day. Joe is one of the industry experts! He's spent his entire life perfecting his systems. Our signals are not simply churned out by a dusty computer using an old system written years ago. Every day, Joe monitors the system and re-optimizes the parameters to account for current market conditions. That means our signals are always generated to give us the highest likelihood of profits in TODAY'S market conditions. Our results speak for themselves. Remember that our average winning trade makes a 2.17% profit and our average losing trade only loses 1.60%. (Even on losing trades, our system usually exits without being stopped out!) Our track record is also 69 winners and only 64 losers. No matter how you look at it, we make more money than we lose!
|
| |
|
| Q: |
"Is there a way to have this system traded for me automatically?" |
| A: |
Yes! This is called broker-assisted trading. We can recommend a broker that will check the signals for you and place all of the trades for your account. They charge $25 per trade for this service. But the advantage is that you can simply open an account with them and you will never have to do anything. Just sit back and watch your statements as your money works for you effortlessly.
|
| |
|