Frequently Asked Questions

If you don't find the answer to your question here, please send us a specific inquiry via the Contact page.

1. I am a new subscriber, is it okay to initiate a new position right away based on the current buy/sell signal posted in the member's area?
2. Are your signals and performance independently verified?
3. Is the LogicTiming computer model making 100% of the signal decisions?
4. Can I trade instruments other than those profiled in the Performance pages?
5. Should I place my entire investment portfolio under the guidance of your signals?
6. I've never used a short sell before. Can you offer any guidance?
7. I've never traded stocks before. How do I get started with your system?
8. Do your signals work effectively with traditional mutual funds?
9. Does LogicTiming provide an Auto-Trade service?
10. Exactly what does "Annualized" mean?

1. I am a new subscriber, is it okay to initiate a new position right away based on the current buy/sell signal posted in the member's area?
   If current prices allow favorable entry relative to our latest signal's posted entry price, then you have our blessing to establish a new position, even though the current signal may already be several days old or more.  As a rule of thumb, "favorable" means not more than a one or two percent price penalty.  Often, however, favorable entry points are difficult to attain in the middle of a signal because price points tend to move quickly after a signal has been issued.  That is the reason it is important to act soon after a new signal is published.  If prices are no longer favorable, we strongly advise that you wait patiently for our next live signal before acting.  A bit of prudence can go a long way in avoiding unneccessary losses. [top]
   
   
2. Are your signals and performance independently verified?
   Yes, LogicTiming trading signals are real-time monitored and verified by TimerTrac.com, an independent and unaffiliated market timing research firm, tracking our signals since 14-Dec-2005.  Click on the "Timer Tracked" medallion in the right-hand column to view our verified signals and results. [top]
   
   
3. Is the LogicTiming computer model making 100% of the signal decisions?
   The vast majority of signals are fully model generated.  However, on special and rare occassion -- usually to issue a Cash signal -- human interpretation of market conditions is allowed to override the current computer signal for brief periods. [top]
   
   
4. Can I trade instruments other than those profiled in the Performance pages?
   Please refer to our ETFs page for equities that work best with the LT signals.  Other instruments are not advised. [top]
   
   
5. Should I place my entire investment portfolio under the guidance of your signals?
   

   Not ordinarily. 

   The LT timing system should be implemented as yet-another way to diversify your existing portfolio.  That is, it should be utilized in combination with other, more traditional investing strategies.

   It would be wise to start small, then expand the use of the LT market timing system to larger portions of your portfolio as you become comfortable utilizing the system.  However, you'll want to carefully consider the minimum amount of your discretionary funding applicable to any given position in order to minimize the percentage impact of your brokerage's trading fees.

   Always use your informed judgement.

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6. I've never used a short sell before. Can you offer any guidance?
   

   First, let me reiterate that short selling is not required to profit from the LogicTiming signals.  Our independently verified track record shows that following the signals on the long side only -- that is, exiting to cash on all Sell or Cash signals -- has handily beaten a buy and hold strategy.

   That said, a long and short strategy can -- in the long run -- potentially deliver greater rewards, albeit with increased risk.  Hence a cautionary mindset is recommended.  If you've never shorted before, want to try and accept the risks, then start small, perhaps applying only half- or quarter-sized positions, until you gain the necessary experience and comfort level.

   Be aware that a margin-activated account is required before your brokerage will enable you to short-sell.  Margin activation may also be required to prevent trade restrictions from being imposed when trading certain close proximity signals.  In any event, never use leverage to sell short, unless you are an expert and know exactly what you are doing.  Please check with your broker for the risks associated with the use of margin or short selling.

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7. I've never traded stocks before. How do I get started with your system?
   

   If you've never bought nor sold a stock or ETF before, don't worry.  Following the LogicTiming system makes trading easy.  But first, you will need to open a brokerage account.  We recommend one of the larger, respected online discount stockbrokers (do your homework) where typical transaction fees range between $10 and $13 per trade.  Check with them for instructions on opening a new account.

   When you apply for the account, be sure to request that it be margin activated. You will need this in the event you decide to execute short sells based on our Sell signal.  But even if you do not intend to short, you may still need the margin activation to avoid possible trade restrictions due to transaction settlement delays.  Be aware, however, that we strongly suggest avoiding the use of margin for position leveraging. This is doubly true if you are new to the stock market.

   Fund your new account.  Once opened you're ready to get started.  Sign up with us, wait for the next LogicTiming signal to be published or the next favorable market pullback opportunity, and jump in.  If you follow our system exactly, you are on the road to profitable trading!  But remember, be prudent and never invest money that you cannot afford to lose.

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8. Do your signals work effectively with traditional mutual funds?
   

   The LogicTiming signals are intended to be applied to the carefully selected equity instruments outlined on our ETFs page.

   It is important to understand that the LT buy/sell/cash action signals can be published on two consecutive days for a quick tactical strike, even though they average around two signals per month.  We're nimble here at LogicTiming.

   Traditional mutual funds are not ideal trading instruments because they typically can only be traded at the market close.  In the event of a one day tactical signal, they will be too slow as the signals are intended to be executed at the earlier market open.  Also, many mutual funds suffer from trade frequency restrictions with penalties attached, making their timely execution too costly or impossible. 

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9. Does LogicTiming provide an Auto-Trade service?
   

   I acknowledge that the automatic trading of the signals would be a valuable service for some of LT's clients.  Investigation continues into the possibility of a future implementation.

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10. Exactly what does "Annualized" mean?
    

    The term "Annualized" or, equivalently, "Per Year Return" is the annualized gain (or loss) from the beginning to the ending of a given time period. It is the annual compound rate that would give the ending amounts over the same time horizon.

    For example, a gain of 10% in the first year followed by a gain of 35% in the second year is equivalent to an annualized returned of about 21.9%. Hence, if the 21.9% rate were applied over each of the two years, the result would be the same amount of money as if we had used 10% one year and 35% the other year.

    Note that annualized is not the same as a simple average. If it were, the 21.9% in the example above would read 22.5%.

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