Any attempt to make money in the stock market would be futile without some type of strategy. A main component of this strategy is a basic system. Something very important to remember is:

"Systems do not fail, people do"

We want you to succeed. It is important that you read and understand this entire page in order for the system to work. We are about to give you a basic system that we have found to acheive the highest gains and least amount of trading losses. You may devise your own system or expand upon this one. Here is the system:

1. Review the daily stock picks and decide which stocks you wish to trade.

2. Place buy orders with your stock broker for / at the opening price. We strongly recommend the use of limit orders.

3. Place sell orders using a trailing stop loss of .30-.50% (.003-.005). For tracking purposes, our stock pick gains are calculated with a .30% trailing stop loss. If your broker does not calculate trailing stop losses on an intraday basis, find a broker who does or calculate the dollar value (i.e. $20.00 x .003=.06) and use it as a stop loss sell order.

4. If the stock continues to move up throughout the day and your trailing stop loss sell order does not execute, sell all shares of the stock just before the market close.

5. If executed properly, your risk of loss is limited to your stop loss. For example .30%.

Here is an example of one of our recent Premium Stock Picks. If you followed our system, this is how it would play out.

As you can see, this stock was purchased at the open and a sell order with a trailing stop loss of .03% was placed. The stock started to decline at a point during the day and the trailing stop loss was reached and the sale executed. We limited our loss to .30% and we were able to gain 7.02% on this particular stock.

Most investors lose over 50% of their trading gains due to emotional mistakes. Using Catalyst stocks and the basic system we provide eliminates this completely and makes investing mechanical. Why?

-Ease of use: no need to analyze companies, economic reports or stock charts.

-Higher returns: using our proven system and stock picks.

-Lower risk: by eliminating emotion and basic investing mistakes.

Some stock picks will have a slight decline at the open before they start heading up. In particular these are stocks that opened substantially higher than their previous close. We use a 45 degree angle or greater as a rule of thumb: if you draw a line on a chart between the previous close and the opening price. This is more of a "hiccup" than anything.

Since we cannot control the market we recommend that you watch these stocks very carefully. On these stocks we advise waiting to around 10:00 AM Eastern Time to place your buy order. You will notice that this is when these stocks normally turn around and make a sizeable rally. As you trade more of our stock picks and begin to recognize the pattern that catalyst stocks make you will learn to perfect your trades.

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