The Long Term Trader
The Long-Term Trader Letter Expectations…
Welcome to the DTS Long Term Trader. This page is devoted to making sure you clearly understand what to expect. Please read this over and make sure you understand! This gives you all the approximate expectations.
The DTS Long Term Trader Letter:
1. The expectation will be that there will be a maximum of 6-8 full positions a MAX. That would be considered fully ‘invested’. Naturally, it will start off at ‘no’ positions and may have less than the 8 positions for long periods of time if it is not smart to be fully invested. Note that 8 ‘full’ positions could be more than 8 if there are partial positions or any other combination.
2. Depending on the setup, it is possible that a position may be started with a ‘half risk’ or it may be a full risk. Naturally, your risk unit is up to you, that is how much you would lose on a trade based on your account and comfort level. You can always determine this because the entry and stop are always given with any play. For example, if you want to risk $1000 and the play had a stop of $2.00, you could buy 500 shares. NOTE, however, holding overnight has the risk of a stock gapping against you so you need to make sure your risk amount is such that even a bad gap will not hurt ‘too much’ although this is tough to judge and necessary risk of long-term investing / trading.
3. Targets and management will be provided on a regular basis.
4. It will never be the intention to enter a position close to earnings. However, positions will be held through earnings if they are ‘seasoned’ generally meaning at least a 5% profitable price move since entry.
5. Positions may include both long and short positions. This will be influenced by the overall market environment, but may also be due simply to unique patterns. It may also be a ‘hedge’ in an uncertain market.
6. The GOAL is to achieve great profitability any market environment INCLUDING AND ESPECIALLY IN DOWN MARKETS.
Details…
1. It will arrive in your inbox as an email with the appropriate email heading, depending on the purpose of that letter.
2. There is no regular schedule. You don’t take positions on Mondays or the 10th of the month, you take them when appropriate.
3. Expect a letter every week even if it is only a general update, but it will vary with the environment.
4. Each letter will be given one of three titles so you know the urgency.
a. General Update – No urgency, no new play, no position changes. Simply an update on the market, on the watchlists, or on the current stalkers.
b. New Position – Urgent, a new position is being suggested.
c. Position Changes – Important and may or not be urgent. Changes to the management of open positions.
5. You will receive a text message (to any US based cell phone) alerting you that you have an LTT issue in your email.
6. While most new positions will arrive after market hours, new positions could be issued at any time during the day. In today’s modern world you should have the ability to have access to your account at any time. Naturally, you could choose to wait until after market hours. However, there is no point in penalizing those who can enter during the trading day by withholding the call.
Nice to know – general comments about Paul’s long-term trading style”…
1. One big concept is to start off safe. So anytime the portfolio gets very light, as may happen at market turning points, it can be a slow start. I look to never have more than 2-3 risk units at risk. So if two positions are entered and both are full positions and no stops are changed and no targets are taken, there generally would not be another position until a partial target was hit or a stop was moved up unless there was a strong market bias. This is how to safely build into a larger portfolio. Note that this concept is still at risk of a disastrous market gap down as ‘stops’ are not insurance policies on a big gap down.
2. Generally speaking I like to get ‘safe’ with a third of the trade fairly quickly on a nice pop in the right direction. This allows more flexibility and lets you build the portfolio and the ‘back halves’. I also like very aggressive entries that can lead to big money at targets and to let things play out.
3. Strategically I am not a ‘bottom fisher’. Remember everything looks like a bargain on the way to ‘zero’. Occasionally exceptional quality plays may look like that (naturally ‘bottom fishing is not a strategic term, but one everyone relates to). I do like steep pullbacks in strong trends. I also like transitional types of plays.
Subscription Details:
The price is $247.00 per month. Annual rate: $2277.00. Subscribe HERE
There is also combo pricing if you want to subscribe to the Long Term Trader along with the Daily Market Letter and/or the DTS Trading Room. You can see the options and discounts on the page where you subscribe HERE