What is the Market/Sector Sentiment

It is important to verify the Sector/Market that a stock resides in to determine the overall pricing strategy and what is the appropriate approach. For example, if you are interested in a Gold stock the Gold sector market sentiment should be the consideration in determining the overall pricing strategy. The Traders Pick will always show the appropriate Sector Sentiment as it relates to the stock presented.

Market Sentiment is located on the GuidedInvestor dashboard and will be either Rising/Flat/Declining Bullish or Rising/Flat/Declining Bearish.

How Long Should I Hold a Stock

If you are following the Traders Pick, the rule of thumb is that you should not hold a stock for longer than 10 days, unless advised through discussion. If at this time a stock has not hit its target price,recommend selling at a small profit and moving on as it may be ready to take a turn to the downside. If you are looking at a longer term hold and see upside opportunity, then you should continue to hold. The key is to evaluate your stock daily looking at its momentum and current trading ranges. Adjust your targets based on these changes and sell accordingly.

A Cautious Buying Strategy

A great strategy to buying is to enter a bid buying 1/2 the desired quantity and to average down if a stock retreats further (Depends on the Sentiment). This means entering 1/2 position at the Recommended Buy Price and having a second bid for the remaining 1/2 position at lower or at a support line as defined in the 15 minute chart. In Bearish markets enter 1/2 position at the recommended buy and the balance at a lower supporting price.

Market Sentiment Changes to "Hold"

With current global economic impacts there are times when a "HOLD" rating is subscribed to Market Sentiment. This means to hold-off buying until a change in current conditions occurs. It may mean missing this stock and is intended to keep your portfolio safe.

Sell Your Position if Stock Price Gap Ups of more than 2% at Market Open. Typically when a stock gaps up in price at Market Open more than 2% and you own a position in it, a best practice is to sell at Market Open as there is a good chance the stock will drop back down to fill-in the gap. Cancel Bid if Stock Gaps Up More than 2% at Market Open

If a stock gaps up more than 2% at market open the following day it is flagged as Traders Pick, cancel the bid. This is likely a stock that saw its gains at market open and will likely decline at this point.

Check Market Sentiment Prior to Market Open

There are times when impacts to the markets occur overnight and prompt a change in the overall market sentiment, adjusting the precision buy strategy. It is important to confirm if there have been any changes due to overnight impacts to the markets by reviewing prior to market open accessing the GuidedInvestor Members Chatroom for an advisory. Cancel a Traders Pick Bid Price by Mid-Day if it has NOT Filled. Typically aTraders Pick will fill in the first 1-2 hours of market trading. If a stock has not reached it's fill by mid-day (noon CDT) the bid should be cancelled as there is a good possibility that the stock if it does decline may have already reached its peak