The optimum table for the current Short Term investment cycle (and therefore position - LONG or SHORT), should be determined with the aid of the Short Term (C4) trend gauge located on the MarketMeter.

Once this has been done, an Investor should select a group of stocks from the desired table (usually a minimum of 2-3 stocks). This selection can be based on individual stock preference, sector preference, etc. Or one may simply use the top 3, bottom 3 or middle 3. Either way keep in mind that the choices should be consistent, or systematic, as this is a system and success also rides on consistency in use. Therefore, if the middle 3 are preferred, then the middle 3 should always be used. All stocks listed within the tables should perform very well, and one should not try to decide which will lose more or gain more, but rather which combination is desired, and this can be based simply on personal preference - no need to technically analyze what has already been analyzed.

We recommend a group of 2-3 as a safe minimum, though one may of course choose more, keeping in mind that the investment amount should always be split evenly across all stocks in the selected group.

The selected position is usually entered on the morning of the first trade day (usually Monday) of the current cycle (week).

To aid in entry timing, the ID gauge of the MarketMeter should be used in tandem with the C4 gauge. When both Indicators (gauges) are in sync, in other words both are reading either positive or negative, an Investor should move to establish a position during the first half of the trade day, not allowing the stock too much time to move away from its open.

For example, if on the first day the C4 gauge reads positive and the ID gauge also reads positive, the Short Term LONG table should be used for the current cycle and positions should be established during the first half of the trade day. If the other hand the scenario is similar to the above but with the ID gauge reading negative, then an Investor should wait till the second half of the day to establish a LONG position, giving the stock time to achieve any Intra-day loss that may occur as a result of the market's current negative momentum.

The same would apply for SHORT positions, with indicator values reversed.

All recommendations also include Individual intra-day analysis and Momentum Indicators which can be viewed in the eQuotes by clicking on the Symbol hyper-link within the recommendations table. Investors should keep in mind that these Momentum Indicators are intra-day (OPEN to CLOSE) and should be used primarily for timing once an Investor is ready to exit a position. They are intended for Day Traders and do not reflect any gain/loss that may occur between CLOSE and OPEN from day to day within the ShortTerm cycle.

Once a position has been established, the stock(s) should be checked regularly for any significant movement (which should happen within the first or second day). At this point an Investor may consider entering a Stop-Loss order to protect against undesirable market movements (current intra-day volume and volatility should be considered when determining stop-loss order limits).

Once a gain has been achieved, any Stop-Loss order should be adjusted accordingly. The amount of the Stop-Loss order should never be placed too close to the current stock price at the time the order is entered - this will both protect you from a loss should the price reverse, and will also protect you from a lost position due to intra-day fluctuations. Short Term Investors might consider using a trailing stop-loss from this point forward¹.

In situations where a stock has not achieved any real gain after the first day or two, and unless there is a substantive market reversal or a stop-loss has been triggered, one should try to maintain a position for the full cycle (4 days, even 5), giving the stock(s) a chance to break from any temporary market pull it may be experiencing.

¹ the above are suggested guidelines for using Stop-Loss orders. Investors are advised to apply their own level of prudence based on personal trading experience.

Investors should exit a position at any time they feel comfortable with the gain, but no later then Friday of the current week. Short Term positions should not be carried over the weekend.

As with position entry, the ID gauge of the MarketMeter (including the Intra-day Momentum Indicator within the eQuotes) may be used to provide insight as to how the current day will unfold, and a better indication for exit timing. For example, if on the third day of the Short Term investment cycle an Investor decides to exit a LONG position, the Intra-day (ID) gauge may be used to decide whether the exit should be in the morning or afternoon. If the ID gauge is reading negative for the day, then LONG position(s) should be liquidated during the first half of the day vs. the afternoon, as prices will probably trend down during the course of the day.

This does not necessarily mean that an Investor MUST liquidate his LONG position(s) on any day due to the ID gauge reading negative. If he is not ready to liquidate then the position should be held and closely monitored. If the Investor cannot monitor the stock(s) regularly, it may be a good idea to have a trailing Stop-Loss in place, or in the very least a Stop-Loss limit order.

The same would apply for SHORT positions, with indicator values reversed.