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"An Approach to Successful Stock Trading Combining Company
  Fundamentals with Chart Technicals"

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TripleScreenMethod's Blog:  "Thoughts and Answers to Your Questions"

..........

How $35,000 Grows to $1,137,744 in 32 Quarters

Above chart shows how consistently excellent the TSM approach to stock trading has been: 2,976% return over 31 quarters versus the S&P's 29.7%.  Notice too, the maximum account drawdown has never exceeded 8 percent.  Find the quarterly breakdown of results here.

"The TSM site is unique in that we first identify stocks with good historical and future fundamentals yet they also have value.
Then we look for technical trading signals to enter a position."

The TSM approach to stock (option) trading combines quality company fundamentals (proprietary ratings) with forward earnings-revision fuel (Zacks rankings) and with remaining value (PEG ratios).  Trade entry is based on highly probable technical patterns (primarily multi-day pullbacks, but also breakouts in a bullish market), then managed under a disciplined ½ position targeting strategy that provides both a suggested profit range and iron-clad stop loss points with an emphasis on keeping losses small.  The six + years of above data for thousands of trades document the validity of the approach.

TSM's daily picks are developed from ~50 to 250 high-quality stocks identified weekly via a series of 28 fundamental screens cross-screened against a value criteria. Most days one of these TSM stocks is picked to buy the next day, usually based on a technical pullback.  Complete entry point(s) are provided in addition to half position stop loss points.

A second aspect of the TSM daily report is the Put Option list provided nightly for the TSM stocks.  Here, front month, deep out-of-the-money Puts are featured that meet income/protection criteria: most often an 18 percent annualized return and >10 percent downside protection.  Essentially, this option approach (writing naked Puts) is all about deploying money conservatively at high rates of return.

The third aspect of TSM's approach is intra-day trading. Using statistical methodology, trading maxims are being developed to trade a 1 min chart for a single stock (AAPL for now).  Edges are identified to made money day trading: e.g., 80% of the time AAPL makes either the high or low of the day in the first hour of trading and utilizing a 70-period Commodity Channel Index (a statistical measure related to volatility) to identify periods favorable to trading AAPL's "wiggles" {trading 15 to 24 cent gains continuously}.

TSM Trade Example

TSM Daily Report Example

(from 6/15/10, note most links intentionally broken)

Weekly TSM List Example
(from 6/25/10)

TSM Searchable List Example (Excel Pivot Tables)
with Exclusive TSM 1-7 Ranking
(from 04/15/11)

Option Page (Programs and Courses) Here.

Recent TSM Articles of Interest
(by Richard Miller, Ph.D.)

  • 05/21/10: "Tips on Writing Naked Puts in a Volatile Market,"
  • 04/23/10: "Controlling Trade Risk with Position Sizing,
                        Part II:  Drawdown"
  • 01/21/10: "Controlling Trade Risk with Position Sizing"
  • 01/12/10: "Buying Weakness and Selling Strength"
  • 11/25/09: "Controlling Risk in Short-Term Trading"
  • 11/12/09: "Trading AAPL Intraday"
  • 09/29/09: "How I Apply Connors' RSI(2) to Trading Pullbacks"
  • 08/17/09: "Deploying Money in the Market at Higher Rates of Return
  • 07/21/09: "Trading Pullbacks in Wall Street's Best Stocks"   
  • These TradingMarkets.com articles describe strategies, analytical indicators (e.g., 2-period RSI) and present results from my own analysis. TSM's strategy in a nut shell is to identify a group of fundamentally sound stocks through 15 multiservice screens (IBD, Zacks, Vector Vest, Morningstar) then concentrate on buying those stocks with value remaining at their current price (2-yr PEG ratios as they pullback.  The 2-period RSI and TradingMarket's PowerRatings provide measures of pullback strength.

     

    Ric,

    You do not CHARGE ENOUGH for your newsletter!!

    My portfolio hit ANOTHER NEW HIGH today and I am up 31% since January 1st. (It would be more but I didn't subscribe to your newsletter until Feb or Mar). In the past few trading days I have sold half positions of JOSB, LUFK AAP WCG MTH UNFI & CDIS (CDIS sold today within 4 1/2 hours of initial purchase). All for a profit!

    I told you awhile back, that one of my rules is not to buy during the first hour of trading. I missed too many of your recommendations because of that rule (URBN & RTSX are two of the latest examples). So now if a stock you recommend hits its target, I buy it regardless of how long the market has been open (LUFK was bought at market open and I sold half of my position for a 2.64% profit.)

    You are going to have a huge newsletter subscriber list (if you don't already). Please raise you rates!!

    Seriously, thank you once again.

    Respectfully,

    J. Michael A.

     

    Read About TSM Progams Here!