The Mentor Center Stacks
The Probability of Market
Success in Your Favor
Everyone who invest in the stock market does it for just one reason -- to make money. In its most basic form, stock investing is simply forecasting what the future price of a stock will be and then positioning yourself to take advantage of that forecast. But how do you do that? How do you make a profitable forecast? That's the job of The Mentor Center from Online Data Services.
To be successful in the stock market, investors want to know just three things ...
- What to stock buy
- When to buy that stock
- When to sell that stock.
But even an experienced investor can get overwhelmed by the huge amount of information, advice and investing philosophies floating around today's market. Company reports, fundamental analysis, technical timing, valuation ratios, industries, trends, market psychology and even the phases of the moon are often invoked when deciding how and when to make an investment.
Searching for a way to cut through the investing haze, Online Data Services elected to combine years of front-line investing experience to create a simple 4-Step Investing Process to take the guess work out of investing:
- First, find a D.A.R.N. good stock
- Second, build a D.A.R.N. good case to buy that stock
- Third, use market timing techniques to buy or sell at the right time
- Fourth, create and following a plan to profitable investing
By combining the 4-Step Investing Process with the power of The Mentor Center you can quickly evaluate and boldly purchase good stocks, plus know when it's time to move into even better stocks.
Of course there is more to understanding the market than just four easy steps, but if you use these steps as the foundation for every buy or sell decision you make you will instantly stack the probability of financial success in your favor. Many users of The Mentor Center, even those with millions of dollars under management, stress the importance of having a basic process in place. And most claim that knowing and using the 4-Step Process as one of the most valuable lessons they learned.
Step 1. Find a D.A.R.N. Good Stock
There are two schools of thought on forecasting the future price of a company stock: the Fundamental Analysis School, and the Technical Analysis School. Investors who follow the Fundamental School typically have little concern for a stock current price. They instead focus on products and profitability. They look for the relative strength and profitability of the company compared to competitors. This style of investing includes people like Warren Buffett (of Berkshire Hathaway) or Peter Lynch (formerly of the Fidelity Magellan Fund).
The technicians, on the other hand, say the historic numbers found in reports made to the Securities & Exchange Commission (SEC) and analyst statements do not matter -- the only thing that matters is the current price of the stock. Who is right? They are both right, and The Mentor Center gives you an easy way to use both disciplines to make your stock selections.
One of the unique features of The Mentor Center is the D.A.R.N. Process, a built-in analysis tool which caters to the Fundamentalist method. It is the starting point for the process and helps you quickly sift through the more than 15,000 publicly traded stocks to find good investment candidates. Here is what the acronym D.A.R.N. means:
- Direction: The direction the stock is moving is also known as its trend. The assumption is that a stock will tend to continue in the same direction it is currently heading, so if you look at a historical chart and see that the stock price over time tends to increase, you rate that trend favorably. A downtrend, however, gets a negative rating.
- Analysts: What are the analysts saying about a target company? Are they positive, or negative, or even more importantly, how many of them are watching the stock and have their opinions changed over time?
- Reports: By looking at the company financial reports made to the SEC, you can gauge their financial worthiness. You can also spot key trends and weaknesses.
- News: The news today is very important to your decision about the future of the company. News has a substantial impact on most companies.
In The Mentor Center the key elements of the D.A.R.N. Process have been automated. All the scoring is done for you, but you can still get under the covers to understand why a stock received a particular rating.
Step 2. Build a D.A.R.N Good Case
This is a reminder to do your homework before you consider getting into a position or buying a stock. It is a checklist which asks you to make sure the stock has good overall fundamentals. How does the stock's sector and industry look? How is the overall market; going up or down? The answers to these questions and more help you know whether you have a good case for an investment. Just as an attorney prepares for an important case before trial, you need to make sure the odds are in your favor before you ever put your investment dollars at risk.
Step 3: Plan Your Trade -- The T.R.I.C. to Trading
While Step 1 in the D.A.R.N. Analysis caters to the Fundamental investor, Step 3 asks the questions a Technical Investor wants answered. Technicians typically don't care if a company has made a single dime of profit, they maintain that the chart of the company will tell you if it's time to buy or sell. A Technician believes the time the Fundamentalist spends pouring over numbers attempting to value a company is a waste of time; his belief is that the value of a stock is shown in the markets every day and the current price of a stock is what the company is worth, no more, no less.
To the Technician, a group which includes such high-profile investors as John Murphy, Martin Pring, David Nassar and Steve Nission, all the profit predicting in the world can't challenge the ultimate truth the market deals out every day; everything known about the company will be reflecting in the price of the stock on a day-to-day basis. Therefore the only way a Technician can forecast the future value of a stock is with a careful examination of the historical pricing data captured in the stock charts.
The Mentor Center's T.R.I.C. process takes you to the charts of likely investments and helps you determine the Trend of the stock, the Resistance levels being created or broken, the state of the Indicators as they signal up- or down-trends, and the Confirmations which help finalize the buy, sell or hold decision.
Step 4: Trade Your Plan
This step should be simple, but for some it's the most difficult part. This step takes what you have learned about a stock in Steps 1, 2 and 3 and asks you to make a decision. There shouldn't be any emotion involved, no external reasons to buy or hold. If the stock passes the tests in 1, 2 and 3, then it's a buy candidate; if it doesn't it shouldn't be considered. If one of your favorite stocks, one you've held for a long time, needs to be purged from your portfolio, now's the time to do it. You are given some simple money management rules and investment strategies that will allow you to protect your investments and make sure your portfolio grows no matter what direction the market is headed.
The Mentor Center is the focal point for your investment strategies. It's where you should begin and end your day. Just a few minutes a day looking at investment prospects, fine-tuning your portfolio, and learning more about how the market works will not only make you a better investor, it will help protect your assets from fluctuations which sink other investors.
Don't Forget Education
No stock analysis program such as The Mentor Center is of much value without the knowledge to use it properly and understand how it work. Online Data Services completes the picture with a comprehensive investor education program of online training, on-site seminars and telephone coaching. Coupled with complete manuals and a 9-hour DVD course, The Mentor Center is the best value available anywhere.
ODS is dedicated to teaching you how to become the most successful investor you possibly can become. We have the ultimate investing tool on the internet, The Mentor Center, which gives you the power of the experts at your fingertips. Your tools and tutors are just a mouse click away. We don't hand you a book and send you on your way. We don't give you the most powerful investing software available and leave you alone in the Wall Street Wilderness. We teach people how to set reasonable goals that fit their needs, how to simply find and analyze pertinent online trading data using proprietary, specialized tools, and how to maximize returns by making logical rather than emotional decisions.
Now is the time to give The Mentor Center a trying. Enroll now in the non-obligation 14-day trial. .