Trade Alert: Narrowing Our Focus

Today, we are implementing another round of upgrades to our Stock Trader Alert system … all for the better.

First, I want to thank you for helping us improve our new stock trading service through this beta test. We read your comments, and to make this service more user-friendly, we implemented rules to cut down on high-frequency trading by limiting stocks that rotate in and out of the service.

By doing so, we’ve limited transaction fees generated by those frequent trades while maintaining the Stock Trader Alert’s outperformance.

That means less money out of your pocket.

In order to further improve upon that idea, we’re narrowing the portfolio to just 10 stocks, down from 15. We’ll continue to hold 50% of our portfolio in the exchange-traded fund — so that’s 11 positions in total.

These narrower holdings allow the Stock Trader Alert system to focus on higher returns and lower portfolio management costs — essentially giving you a better gain for your buck.

While we are not opening any new positions this week, we are thinning the herd — so to speak — and bringing the portfolio in line with the new, improved model. The proceeds from selling the existing positions should be invested in the remaining positions so that your allocations match the table below.

Please remember that to fully participate in this portfolio, you need only purchase 11 positions, down from the previous 16 — there is no change to the ETF portion of the Stock Trader Alert system.

The Stock Trader Alert Portfolio

If you’ve already established a position in the portfolio, here are the holdings we are exiting this week:

We continue to hold 50% of our portfolio in the SPDR S&P 500 ETF (NYSE Arca: SPY).

With the remaining 50% of your portfolio, we are currently holding these stocks at the following allocations:

After you make today’s new trades, please take a moment to send me an email letting me know how the trading process went. Were the directions easy to follow? Do you have any questions about the overall system or this new time-out tweak we just instituted?

You can contact me at stocktrader@banyanhill.com. I appreciate every bit of feedback you send my way.

Kind regards,

Ted Bauman
Editor, Stock Trader Alert