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Trading

Floor Research

Trading Floor Research provides market, sector, industry group, and stock research with high-probability sell targets.

David J Wozniak, CMT 

Founder & Chief Market Strategist

I created Trading Floor Research to give Portfolio Managers and individual investors a platform to be more tactical in their investment decisions. The analysis provides high-probability market, sector, and industry group turning points and technical analysis of leading stocks and ETFs. All research comes with high probability sell targets.
The TFR system was developed, back-tested, and used to manage high-net-worth portfolios for over 32 years.
Trading Floor Research applies technical analysis tools to create the best trading opportunities for subscribers from start to finish. An e-mail is sent to subscribers bi-weekly highlighting entry points, sell targets, and stops. A text alert will inform you when a newsletter buy candidate confirms the purchase and when the sell targets are achieved. The Trading Floor Research process increases your probability of success by giving you proper asset allocation of each trade and guides you through the investment process with less stress.

Learning the Trading Floor System

 

Wait for confirmation before you buy a stock

Trading Floor Research (TFR) mentions many stocks in the newsletter with buy points. However, just because it's mentioned with a buy point does not mean it's an outright buy. TFR must first see the price action in the stock and combine it with the stock's volume at the time of the buy confirmation. Then we ensure the stocks industry group and the overall market also give a buy signal before notifying you of the purchase.

TFR will notify you by text message when the stock is a confirmed buy.

                       TFR has simplified the risk management process with a 5-star system

The stock TFR recommends as a trade carries a range of 1 to 5 stars. What that means in terms of the percentage allocation of your trading portfolio looks like this:

 

The money you put aside for your trading portfolio could carry as few as ten stocks, each of which has a 10% allocation of the overall trading portfolio.

 

5 star (*****): full individual stock position at 10% of overall trading   portfolio

4 star (****):  8% individual stock allocation of overall trading portfolio

3 star (***):    6% individual stock allocation of overall trading portfolio

2 star (**):     4% individual stock allocation of overall trading portfolio

1 star (*):      2% individual stock allocation of overall trading portfolio

 

Example: A $100,000 trading portfolio would place $10,000 into a 5-star stock, $8,000 into a 4-star stock, and $2,000 into a 1-star stock.

 

As a trade progresses, the trade could start at 2-stars based on probabilities of success. TFR will tell you to increase to a higher star rating as probabilities increase on the stock. This could lead to multiple areas adding to the trade. TFR will provide updates on the stock.

TFR rules for selling your stock

In the 32+ years of working with individual investors, I have found that people fall in love with stocks when they do well. After the market has moved for a substantial period, your stocks will become vulnerable to a sell-off, which can happen so fast you won't believe it. TFR will provide sell targets on every trade. If you choose not to sell your stocks at the target numbers, TFR will not provide updates on past sell targets. TFR will provide updates if/when the stock becomes a trading buy again.

 

TFR will give multiple sell targets for your trade.

If TFR gives two sell targets, sell ½ position at the first target, and sell the remaining position at the second target. 

If TFR gives three sell targets, sell 1/3 position at the first target, sell 1/3 position at the second target, and sell the remaining position at the third target.

Unless TFR sends an e-mail or text that states otherwise

 

Be quick to sell your stock should it return under the TFR buy point by 3% to 5%. TFR will notify you when we see a change, but change can happen quickly in these markets. This may mean selling a stock that just tried to break out and failed in 20 minutes or 3 hours from when it broke out above our purchase price.  

A drop dead TFR sell signal to protect the principal is a 20-day closing low. TFR will inform you if that happens.

Hold your strongest stocks the longest and sell stocks that stop moving up or are acting sluggish quickly. Remember, stocks are only good when they are moving up.

Group strength is essential.

TFR will Identify and follow strong industry groups of stocks and keep our selections in these groups.

If the individual stock shows tremendous potential, we want to take the trade, but we always understand probabilities. When we recommend stocks outside a strong industry group, we label those stocks as speculative trades. Buying individual stocks without group strength lowers your likelihood of success by 60%.

Volume is important

Volume is the key to your stock's movement, success, or failure. Remember, it takes volume to move stocks. TFR will monitor the volume of stock trades, report the stock's volume behavior, and how it reacts to spikes in volume. You can see these spikes on the charts we provide.

TFR reports will include a summary statement on the stock, industry group, and market and a detailed analysis for those who want more information about why TRF is making the buy and sell recommendation.

 

These rules are essential. Remember them on the trading floor.

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