What market timing is all about and what you will learn from our book,

The Streetsmart Guide to Timing the Stock Market

Technical analysis indicates when to buy or sell a stock on the basis of its price action. It complements fundamental analysis, which suggests which stocks to buy on the basis of financial statements and future business prospects.

Developed for Futures Markets.

Stockscom's techniques were originally developed for use in the commodity futures markets and they form the basis for the Five Star Futures advisory service. Colin Alexander describes these same techniques in his book Five Star Futures Trades (Windsor Books). Five Star Futures has been consistently ranked among the best futures advisory services by Commodity Traders Consumers Report.

Proven with Computer Testing.

A powerful computer program developed in-house delivers consistently profitable results in all financial markets traded in North America. The results for stock indexes, although derived only from data during a major long-term bull market, show profitable trades exceeding losers by more than 2:1, and profits exceeding losses by almost 4:1.

Combining Technical and Fundamental Analysis.

When technical and fundamental analysis both support the same conclusions, the results are likely to be spectacular. However, fundamental analysis on its own does not necessarily lead to stocks where the action is. A stock might look wonderful on the basis of its fundamentals but in the real world more people may want to sell it than buy it. So the stock goes down, not up. On the other hand, when there are strong technical buy signals, it will likely be more rewarding to buy that stock than to buy a blue chip with poor price action.

Market timing works!

The Value Line Investment service proves that. Their stocks, recommended Number 1 for timeliness, have far outperformed the rest of the market a thousand times over.

Four Rules for Success Using Market Timing:

Rule 1. Buy stocks that show by market action that they can go up. In recent years that has meant buying General Electric and Wal-Mart, not General Motors and Woolworth.

Rule 2. Let your profits run and cut your losses. This rule sounds so simple, so obvious. But it is the exact opposite of the methods used by the investment industry! The reason why many individual investors and most mutual funds don't make above-average returns is that they constantly sell out their winners and then buy more losers. They sell winners because they look expensive after they go up, and they buy losers because they look cheap.

Rule 3. Keep an eye on the exit. No stock goes up forever. Every deadbeat sector like steels has had its day in the sun. You absolutely must avoid getting caught in a major bear market like the one we're living through right now! The cycle between bull markets and bear markets continues even today. No matter how long your long-term view, you must not ride stocks down when the ship is sinking. In the current bear market the NASDAQ index has declined over 60 percent! Even in a bull market many great stocks decline by 90 percent or more. Remember the great company Digital Equipment? It disintegrated from $199.75 to $18.50, and this was a great company at the beginning of the last bull market! Mutual funds will not protect you from a bear market! They often go down with the ship. It happened in 1987. It happened in Asian stocks. It happened in gold stocks. It is happening today with the most general stock funds and various growth stock funds.

Rule 4. Don't take at face value what anyone tells you! And especially not if they stand to make money from the advice they give you! Brokers and mutual fund salespeople give bad advice for a pastime. They may not do so intentionally but the bottom line is that they want your business and that's how they make their living. You do not find salespeople and brokers using the word sell until it's too late. Always check their record - you can check ours by clicking here.