Best Practices Guide

Tips For Success as an SRP Member: Getting Onboard…

Best Practices Guide to have success with SRP for the long term:

Per your registration agreement, please be advised that all communications are subject to our Terms of Use Agreement and also all disclosures and disclaimers on the web pages. 

1. Read our SRP Members Website Navigation Guide:   CLICK HERE

2. Review our Notes below in detail
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• Read the Morning Report Daily: If you don’t know where our thoughts are on the markets, current strategy, adjustments in stops or opinions on current swing trade position, then you will be flying blind. Read the morning reports so you are on the same page as us.  They are published on the Members site every day by 9am est USA time.­

• Always Sell 1/2 your position and take some profits if up 6%,  with or without our alerts if you can.  We otherwise will advise on profit taking via alert and email on every open position.

• Set your own stop loss points that match your risk profile if you do not see one from us or don’t agree with ours, this is very important. With that said, we set  them strategically and you should generally follow them for that reason. We use Stops near close of market day in most all cases to avoid intra-day volatility washouts.

• Do not overweight any one specific stock, that subjects you to too much risk. The worst thing you can do is cherry pick our swing trades. Often the ones you think are the most contrarian will be the biggest percentage gainers.

• General rule of thumb for each position is 10% of your trading portfolio for Swings. In General, assume each position is 10%. We will notify you upon alert on position sizing or if its only 5% (1/2 size).

• Never enter a swing position in one trade. Always try to work in over multiple trades over several days because swing trade positions can be volatile on both sides up and down. I often will use micro trade amounts as many as 15-20 in a day over a few days to build a position.  Do not be afraid to be adding on dips. Do not be in a hurry. If you may usually buy 100 shares at a time, buy 20 at a time for example… work your way in throughout an entire trading day window and or multiple days window for best results.

• Email Dave if you have any questions on positions or strategy at reversaltraders@gmail.com, he answers within 5-15 minutes usually.

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1. Historically our track record has been roughly 70% accuracy on our Swing Trade guidance and ideas since inception. However, we also agree that nobody gets them all right. We will get trades wrong and its why we advise using 10% max portfolio allocation per position.  We try to reduce mistakes as much as we can and beat the market by taking profits and being smart about entry and exit advice as best we can… but again, we are not perfect. That said, we do have over twenty five years of trading and lessons learned experience. We are confident we will reduce your mistakes, lower your risk, and increase your returns all at the same time if you follow our guidance and suggested parameters.
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2. We are not perfect and we will make some mistakes, don’t expect 100% or our Swing Trades to be winners… its not realistic. If the market or sectors are going hard against us, we will do our best but if 80% of stocks in a sector (Small Caps, Tech, Biotech etc) are dropping its hard to totally avoid some pullbacks or losses. That said, we have a ton of market experience to back us up. We also typically have stop loss points in place and we alert you too.
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3.  All of our Swing Trades that we guide on incorporate our strict fundamental analysis. We do not trade purely on chart patterns or momentum. Technical Analysis however does make up an important part of our work. Our focus is always on the fundamentals and catalysts, share structure, sector, ownership, management, product lines and more, and once we like that then we focus on the charts and timing.  Trust our work and follow our stops, they are set strategically. If your risk profile is very conservative then set your own stop losses.
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Computers control 80% of trading now, don’t get snookered by volatility. We do the research, sometimes the position will pull back more than we planned, we often simply add to it instead of taking a loss. In many cases our research proves out in the end even after we may have taken a swing trade loss.
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4. Take your time where you can entering a position, sometimes you get a pullback to add. Pullbacks are your friend, not your enemy. Maybe enter 1/20th or 1/10th  at a time adding on dips.  We never buy a swing trade position in one order, we advise if possible to work in over 1-2 trading days with multiple micro-tradeds if you can. Often they pullback a few days after a position guidance is sent out and you can use that to lower your average  entry point. If they take off and you only get a 1/3 of a position, so be it, it may still come back into buy ranges later. Be patient.
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Its where we first came up with our name “Stock Reversals” after all. Stocks and ETF’s are volatile by nature, learn to work with it not despise it. Most traders sell at the wrong time instead of buying, and vice versa… you will learn to think much differently when you follow our advice.
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5. Handling Stop Losses:  Stops near market closing: We will tell you where the suggested stop loss near market close price is on all positions with the trade alert details. Your job is to monitor the open positions that are near stop losses if within 5-10 minutes of the market closing.  You sell them if they are below the stop point only near the close of the trading day or if we otherwise update you. Otherwise we alert you via email/text for profit taking on the way up always.
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6. Taking Profits:  Always take profits of 1/2 position size when you are up 8%. There is nothing worse than having a gain on paper then watching it melt away right? We will advise on where to sell via E-mail alerts and Text Alerts, but we have no problem with someone taking a profit if they wish to. Our rule is sell 1/2 when up 6%. 
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Swing positions have upper end targets, but they are not cast in stone: It will be very common if not routine for us to send an alert to sell 1/2 of a position on the way up. We often trim winners and ride a remainder portion for awhile. This reduces your portfolio risk and increases your long term returns and profits, trust us on it.
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7. If you don’t agree with our stop loss advice, then consider setting your own that you are comfy with. However, intra-day stop losses are just a way for Wall Street to generate more trading commissions and you to lose more money. However, if market conditions dictate, we incorporate them as necessary.  You should be aware of your own personal risk profile and situation financially.   
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8. Our market forecasts are contrarian in how we come up with them and proprietary in our methods. Please make sure to read the weekend forecast and ideas report and the morning reports for guidance.  We will use 3x ETF’s in lieu of stocks when the market conditions dictate for example. 3X ETF’s have their own methodology of scaling in and benefiting from extremes in sectors.  Stops are usually near the close of market, not intra-day in most cases.  Different market cycles (Bull or Bear) dictate how aggressive or conservative we are and our cash levels as well in the model SRP Portfolio.
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We look forward to working with you long term, be patient, let us be aggressive when the market dictates and conservative as well when we feel we need to be… long term, you’ll be happy we think. We take our job seriously… we dont rush out a stock just to trade something, we don’t do options, we don’t trade on margin… and that is why we are in the game and many traders are wiped out.

Per your registration agreement, please be advised that all communications are subject to our Terms of Use Agreement and also all disclosures and disclaimers on the web pages. 
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Best!
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Dave
Chief Strategist
TheMarketAnalysts.com

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