Follow the Money Trail, LLC has constructed answers to various questions below that will reveal to you the great significance of the Follow the Money Trail Black Box. The information below is a strategic source of relevant and educational facts to help you become a successful Money Trail Investor.
Our Follow the Money Trail Black Box provides unique analysis of institutional consensus that will benefit both the retail and the institutional investor.
Top Frequently Asked Questions :
- What is the Follow the Money Trail Black Box?
- What does the Follow the Money Trail Black Box do?
- Why is the Follow the Money Trail Black Box so powerful?
- How is the Follow the Money Trail Black Box rating calculated?
- Where does your data come from and how quickly does it reach your system?
- If the Follow the Money Trail Black Box relies on past information, does that make it unreliable?
- What do the fund managers know that I do not know?
- What are the various ratings that the Follow the Money Trail Black Box produces and what do they mean?
- Do you post the highest rated stocks onto the web site and how many?
- How long will a rating last?
- Can I track my stocks in portfolios?
- Can I view the best performing stocks from your portfolios?
- Have you had any well-known clients?
1. What is the Follow the Money Trail Black Box?
The Follow the Money Trail Black Box is the most compelling stock-selecting tool to have been created to date. It is the only investing
tool that enables the average investor to take advantage of the knowledge, experience, and expertise of the best analysts, researchers, investors, and economists on Wall Street. Our products give you instant access to the recent buying and selling activity of thousands of professional money managers for any individual stock. We organize and analyze this information for you, clearly showing the level of consensus among the institutions. For the Bull or the Bear, it is the ultimate investment tool.
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2. What does the Follow the Money Trail Black Box do?
The Follow the Money Trail Black Box looks for a consensus, or disproportionate buying or selling of a stock by the professional money managers. When it finds more buying than selling, and such buys are significant, it produces a positive rating. The greater the consensus and the more significant the buying is, the higher the rating. On the opposite side, when it finds more selling than buying, and such selling is significant, it produces a negative rating. The greater the consensus and the more significant the selling, the lower the rating.
The ability to highlight this consensus of institutional investors is the cornerstone of the Follow the Money Trail Black Box and why it is so revolutionary. The rating is actually much more than a simple comparison of total shares bought/sold to total shares sold/bought. It is based on a sophisticated formula that takes into account the importance of each transaction to the investor, and ensures that the actions of small and medium size investors are given sufficient weight.
In addition to providing the long and short side of our ratings and selections, the Follow the Money Trail Black Box utilizes technical analysis to monitor active selections to deliver email alerts to our subscribers of significant changes. The Technical Analysis conducted is support and resistance zones, to exploit changes in movement over varying time frames. This new feature provides higher probability, lower risk opportunities to profit from market movement compared to our basic 16-week time frame with a 16% stop loss system.
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3. Why is the Follow the Money Trail Black Box so powerful?
$5 Million dollars and nearly 12 years have been placed into the development of the Follow the Money Trail Black Box to get it to its present day performance. The Follow the Money Trail Black Box processes raw data from over 10,000 institutions through live data feeds that are piped through a proprietary algorithm that has been watched for years to improve and capitalize on its full capacity. The Follow the Money Trail Black Box is particularly powerful when it shows that fund managers agree on a stock's prospects. This happens when many funds have been buying a stock, while most funds holding the stock have not been selling it. The more unbalanced the buying activity, the higher the rating. Conversely, the more unbalanced the selling activity, the lower the rating. When the professionals act in significant unison, it is often a sign that they have uncovered important information that individual investors do not yet know about. Follow the Money Trail acts as an early momentum signal and allows you to get into the stock before other investors, while momentum is just beginning to build. We post stocks with very high ratings for the long side and very low (or negative) ratings for the short side.
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4. How is the Follow the Money Trail Black Box rating calculated?
The Follow the Money Trail Black Box evaluates each fund's buying, selling, and holding of a stock based on transaction data periodically reported to the SEC by the fund. It is important to understand that Follow the Money Trail Black Box is much more than just a measure of the number of shares bought or sold. The calculations are designed to measure the importance of the transaction to the fund. Similarly, the calculation gives more weight to those transactions that represent a larger percentage of a fund's holdings and to those transactions that represent a larger percentage of the outstanding shares in the company's stock.
This results in a "qualitative" as opposed to simply a "quantitative" analysis. For example, if we simply counted the number of shares traded, then the activity of small and mid-size funds would have little impact on the Follow the Money Trail Black Box. However, the managers of these funds may be just as smart, and have just as good a track record as those managing large funds. By looking at the size of the change relative to the size of the fund, a large position established in a small fund is given the weight it deserves in the Follow the Money Trail calculation. However, the managers of these funds may be just as smart, and have just as good a track record as does those managing large funds. By looking at the size of the fund, a large position established in a small fund is given the weight deserving of such a large commitment. Conversely, if a large fund takes a small position relative to the fund, this will have much less of an impact on the rating.
In essence, our proprietary formula takes into account three main factors: Supply & Demand | Significance & Commitment | Pattern & Trend Recognition.
- Fund's position in the stock as a percentage of the stock outstanding
- Size of the position (buy or sell) relative to the size of the fund
- Rank of the stock position within the fund
- Overall trend projection of pattern of buying and selling
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5. Where does the data come from and how quickly does it reach your system?
Buying and selling activity is determined by comparing a fund's most recent holding report with its previous holding report. Our database captures fund holding data from over 10,000 funds that report monthly or quarterly, and this number of funds continues to grow. Each Thursday we receive the latest filings from hundreds of funds, which are then integrated into our site early Thursday morning.
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6. If the Follow the Money Trail Black Box relies on past information, does that make it unreliable?
Absolutely not. It is true that the data we are looking at is from information that the funds reported in the most recently ended quarter. However, funds usually make big commitments to particular holdings for a long-term investment, so it is unlikely that a fund will reverse a large buy in a short time frame.
More importantly, momentum in a stock's price builds over time. Momentum trends often result in upward price movement over many months or even years. Only four weeks after the close of each quarter, the Follow the Money Trail Black Box begins to identify stocks that institutions and mutual funds are accumulating on a large scale – stocks whose future the market is just beginning to discover. Many of these stocks are just getting started into a multi-year upward trend. It may take a while before the rest of the world discovers what these professional money managers already know.
In this way, the Follow the Money Trail Black Box acts as a very useful early momentum signal. It gives you the opportunity to get in before other investors. Our track record confirms this theory – the highly rated stocks we have posted in the Special Bullish portfolios section of the site have significantly outperformed the market averages.
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7. What do the fund managers know that I do not know?
Professional money managers usually have access to a vast quantity of information and a research team to analyze it. Many also have important connections in the investing community, and access to the top managers of companies they are researching. Full time analysts often specialize in one industry like beverages or aerospace, or even one geographical area within an industry. It can take years to develop a complete understating of even a single area, and even then there are hundreds of stocks to follow with new ones appearing frequently. Most individual investors simply do not have resources comparable to one professional manager, let alone the thousands of managers tracked by the Follow the Money Trail Black Box.
Nevertheless, an individual may get a stock tip from informed people on occasion and sometimes he/she are compelled to buy stocks based on this "inside scoop", however, this information is usually from a limited or biased source. By contrast, the Follow the Money Trail Black Box investigates thousands of sources, providing some of the best information on Wall Street. Why not pick from a consensus of professional minds and receive the Follow the Money Trail Black Box benefits:
COLLECTIVE CONSENSUS | COLLECTIVE BRAIN POWER | COLLECTIVE FUND ACTIVITY!
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8. What are the various ratings that the Follow the Money Trail Black Box produces and what do they mean?
The Follow the Money Trail Black Box ranges below will give you a sense of the ratings and how to utilize them to your advantage.
Extremely Bullish |
(3 to 5 stocks each quarter) |
Very Bullish |
(5 to 10 stocks each quarter) |
Bullish |
(25 to 35 stocks each quarter) |
Market Outperform |
(75 to 100 stocks each quarter) |
Neutral |
(most of the stocks fall into Neutral) |
Slightly Bearish |
(75 to 100 stocks each quarter) |
Bearish |
(25 to 35 stocks each quarter) |
Very Bearish |
(5 to 10 stocks each quarter) |
Extremely Bearish |
(3 to 5 stocks each quarter) |
The Follow the Money Trail Black Box rates over 10,000 stocks with institutional holdings. The percentages shown may differ slightly for each quarter analyzed.
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9. Do you post the highest rated stocks onto the web site and how many?
We post about fifteen stocks each month with very high ratings. These appear in the "Special Bullish" portfolios on the main subscriber page, where you can view their ratings. The stocks in the Special Bullish portfolios have consistently outperformed the market averages over short, medium, and long-term horizons, and you can see all the performance results of each and every stock/portfolio ever posted. On average, only several dozen stocks out of the thousands that trade on the U.S. exchanges have a strong buying consensus in any given quarter. Through careful analysis and the proprietary technology of the Follow the Money Trail Black Box, we post the best 3 – 5 stocks on our web site every Monday morning by 9:33 AM EST.
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10. How long will a rating last?
Once a stock is posted, ideally, holding it for 16 weeks is best. Once there is a positive breakout rating on a particular stock, it is significant that neutral or bearish ratings in the following quarters are not usually an indication of weakness.
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11. Can I track my stocks in portfolios?
Yes, you can track up to 500 stocks of your choice in personal baskets. You can create multiple baskets and you can change the stocks in your baskets as often as you like!
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12. Can I view the best performing stocks from your portfolios?
Yes. The page is called “Open Stocks” and highlights all recent selections that are doing well.
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13. Have you had any well-known clients?
Yes. For almost three years, the proprietary technology of the Follow the Money Trail Black Box provided Forbes Magazine with stocks being heavily bought and sold by the professionals. These stocks were published in every issue on the Markets and Forecasts page under the heading "What the funds are buying and selling." We have posted all the Forbes stocks with high ratings in our Special Bullish section of the web site.
We have a number of subscribers that are in the professional entertainment industry including Hollywood, Broadway and International Athletes. We are currently in consideration of celebrity endorsements.
What we are most proud of, however, is the professional money managers in charge of very large private funds – funds that we actually track. We wish we could share the names of these professionals, but they have requested that we do not release their names. They do not want the public to know that they use the proprietary technology of the Follow the Money Trail Black Box. Better yet – they do not make a "buy" decision without first referencing the Follow the Money Trail Black Box. Professionals continue to benefit every day from the Follow the Money Trail Black Box, and so can you!
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BE THE BEST MONEY TRAIL INVESTOR
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