Trade Alert: Two New Recommendations

Your Monday trade updates are below, but before you dive in, be sure you’ve read the trading manual for important information.

For today’s recommendations, our system has triggered two new trades: one buy and one sell for those who have established a position in the portfolio. Please remember that to fully participate in this portfolio, you need to purchase all 16 positions.

With this Stock Trader Alert system, we designate half the portfolio to our stock positions (no more than 15 stocks at a time) and the other half to one exchange-traded fund (ETF).

If you’ve already established a position in the portfolio, here are your new trades:

The Stock Trader Alert Portfolio

If you haven’t already established a position in the Stock Trader Alert portfolio, please use 50% of the cash you’ve put aside for this portfolio to buy shares of SPDR S&P 500 ETF (NYSE Arca: SPY).

Action to take: Buy the SPDR S&P 500 ETF (NYSE Arca: SPY), with a portfolio allocation of 50%.

With the remaining 50% of your portfolio, please buy the following stock positions using the allocations listed in the table below:

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 system? You can contact me at I appreciate every bit of feedback you send my way.

From the Mailbag

We had a couple questions come in last week that I thought I’d address. I want you to be as comfortable and confident trading this service as possible, so please make sure to reach out any time you have a question.

With that said, let’s jump right in:

I have gone through your trading manual and just received your recommendations. I have allocated $20,000 for investment, and after the 50% slated for SPY ETF, the remaining funds broken down for the remaining investments will cause me to buy, depending on price, fewer than 10 shares in some cases. I just wonder if such small holdings in some companies will bring me the results I am looking for?

That’s great; you’ve correctly allocated your funds for this trading service. You should invest $10,000 (50%) in the SPY exchange-traded fund and the remaining $10,000 (50%) in the 15 stock positions based on the percent allocations in the table above. In some cases, you will have fewer than 10 shares for a company, but over the long term, this investment will keep you appropriately balanced for the market.

This is the first email received, and I would like your recommendation on how to approach the trades. Are the trades made to market or limit? If a limit is specified, how would you set the price?

Just like my Smart Money Alert trading service, we will not be providing limit prices for these trades. These are stock recommendations, and, unlike options, their prices don’t tend to spike quickly. I simply want you in these positions to benefit from the uptrends our proprietary system has pinpointed. When buying or selling a position, you should place a market order.

If you have any additional questions, please contact me at I appreciate every bit of feedback you send my way.

Kind regards,

Ted Bauman
Editor, Stock Trader Alert