StockGarden Trading System

• Step 1  Distinguish stocks with superior fundamentals, Premier Stocks from both the Nasdaq and the NYSE.  These are growth stocks with low debt and a high cash per share ratio.

• Step 2  Enumerate stocks with price momentum, Momentum Stocks that are currently trading at premium prices, prices inflated above StockGarden valuations.  The companies that issued these Momentum Stocks are presently experiencing a period during which advances in the prices of their stocks are greater than normal and do not reflect StockGarden valuations of the stocks.  Based upon StockGarden valuations, these stocks are presently over-priced.

• Step 3  Choose the top fifty undervalued stocks, Top Value Stocks that are presently trading at discount prices, prices below StockGarden valuations.  The companies that issued these stocks may presently be experiencing events that are causing the prices of the stocks to be deflated below StockGarden valuations.  Based upon StockGarden valuations, these stocks are presently under-priced.

• Step 4  Index the stock by category, separating them into Stocks Over/Under $10 for the investor who specializes in trading stocks in either category.  These stocks are derived from the Top Stocks list.

• Step 5  Determine which stocks currently have a buy, hold, or sell signal issued by Top Stocks Extra.  When combined with the information provided by the first four steps of the StockGarden Trading System, Top Stocks Extra enables an investor to select stocks that have a higher than average probability of producing a short-term or mid-term trade price advantage.

• Step 6  Evaluate action priorities by examining the Buy Signal Ratings for select Premier Stocks to detect stocks that have a higher than average probability of producing the greatest return on investment.

• Step 7  Allocate stocks by objective buy or sell prices by employing the StockGarden Limits Calculator.  The StockGarden Limits Calculator enables an investor to quickly and precisely compute a buy or sell price for any stock listed by any exchange.  

 Examples of Buying and Selling a Stock

 Buying a Stock

Step 5

Buy Signals issued by StockGarden remain in effect for a period of only one week.  StockGarden tabulates all Premier Stocks with buy signals on the Top Stocks Extra page.  The Top Stocks Extra page allows a subscriber to identify, review, and research any Premier Stock of interest.  The analyses performed and provided by each of the initial four steps contributes to the identification of these stocks, making it possible to select a group of stocks of interest that have a greater probability of producing a higher than average short-term to mid-term periodic price increase.

Step 6

Once a group of stocks of interest has been identified, a subscriber may then sort the stocks to determine a transaction disposition, as well as a transaction priority.  This may be accomplished by sorting the stocks of interest by StockGarden rank, by the StockGarden buy ratings.  Those of greatest interest, with the highest ratings, should be retained for further consideration.  From among the stocks of interest remaining in the reduced group, isolate five stocks, and select the stock which has the highest StockGarden rating.  The StockGarden suggested buy limit price is displayed in the Buy Signal Ratings table.  Once this stock has been determined, place a buy order for it, based upon the suggested buy limit price, to be filled the next trading day when the markets open.  If the order is not filled at the suggested buy limit price the next trading day, continue to place the order daily, at the new suggested buy limit price, repeating the same process, until it is filled.

Selling a Stock

General Information

As well as using step five and step six, a StockGarden subscriber also uses step seven, which employs the StockGarden Limits Calculator to compute an advantageous selling price at which to exit from an open position.  This assists the investor in discriminating when to sell.  Step seven is used in combination with step six.

Step 5

After purchasing a Premier Stock, an investor reviews the Top Stocks Extra page each weekend, after the buy signal expires, to determine the open position of the stock.  The table will indicate whether the stock should be held or sold.  During this period subsequent to the purchase of the stock, regardless of the stock's price fluctuations, unless a sell signal is issued, the stock should be held.

Steps 6 & 7

Once the StockGarden transaction signal changes to sell, the subscriber then uses the StockGarden Limits Calculator, step seven, to determine an advantageous Exit Price for the stock.  Once the Exit Price has been computed, the subscriber then places the sell limit order at the price for which the stock is to be sold on the next day of trading.  Concise instructions are provided for making computations quickly and accurately with the Limits Calculator.  If the sell limit order is not filled the next trading day, repeat the process, including the use of the Limits Calculator, to determine a new sell limit price for each new trading day, and continue repeating the process until the sell order is filled.