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The FTMT Black Box System is the ultimate investment tool that provides investment information that is incredibly easy to use.

Summary:

  • Every Monday you login to www.FollowTheMoneyTrail.com and access the Black Box new selections
  • Buy when posted—invest 2.5% of your total portfolio into each stock
  • Use a 16% “Safety Net” to protect any downside
  • Sell 16 Weeks later
  • This process takes about 15 minutes each week
  • The FTMT Black Box process can be used in retirement accounts
  • Using the FTMT Black Box is a low risk investment solution

1. What do I get when I subscribe?
2. How much should I invest each week into the market?
3. How do I follow the FTMT black box system when I buy and sell my stocks?

4. What are the various ratings that the FTMT black box produces and what do they mean?
5. How can I tell when to buy a stock based on the FTMT black box system?
6. Why are so many of the stocks I own not highly rated?
7. If there is a high FTMT black box rating, does that mean that the funds have already driven the stock price higher, and that I have missed my opportunity to invest?

1. What do I get when I subscribe?

  • A successful investment tool that enables the average investor to take advantage of the knowledge, experience, and expertise of the best analysts, researches, investors, and economists on Wall Street.
  • Stocks posted almost every Monday after 9:33 AM EST
  • Ability to view the FTMT black box ratings
  • View the performance of all our posted stocks for the 16-week time frame vs. the performance of NASDAQ, S&P 500 and Russell 2000 indices

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2. How much should I invest each week into the market?

Because we are not registered stock brokers, financial planners, or a registered investment advisory firm, we cannot tell you how much to invest into each stock weekly. However, the historical performance of the FTMT black box is based on investing the same dollar amount of money each week into every stock.

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3. How do I follow the FTMT black box system when I buy and sell my stocks?

For your convenience, you can login to the FTMT black box on every page of our website - top right corner. Once you login, you will be taken to the Subscriber Page. As you scroll down the page, the current 'open' portfolios are listed. A portfolio is the name given to any group of stocks generated by the FTMT black box for each week. An average of three new portfolios is posted each month. An 'open' portfolio is one in which the stocks are still being held. Once the stocks reach the 16th week, they are sold, and are now considered to be 'closed' portfolios. You can view all the closed portfolios back to 1998 by choosing 'closed' from the drop-down menu.

When you log in any time after 9:33 AM EST on Monday, you will look at the list of open portfolios to see if there is a new portfolio for the current week. The date listed beside each portfolio will be the previous Friday, because the stocks are chosen using Friday's closing data. Just click on the portfolio to see the new stocks that have been posted. There will be 3-5 stocks.

At this point you will determine how many shares of each stock you want to buy. Historically, the success of the FTMT system has shown that placing 2.5% of your portfolio in each stock is the optimum scenario. This will ensure that you will not run out of money to buy stocks over the next 16 weeks. (You will hold an average of 30 - 40 stocks at any given time). Assuming a total portfolio of $50,000 that will be used to invest in FTMT black box selections, 2.5% of $50,000 is $1,250 that would be invested in each stock. After retrieving the information from the portfolio of the current week – you are ready to buy.

After placing your order with your broker or on-line trading account, it is imperative that you be privy to the knowledge of the trading function known as Stop Limit Order or Sell Stop Order – these terms can be used differently by brokers or online-trading entities. This function protects you on the downside of stock trading. Our personal practice is to use 16%. After you place your order, you will want to immediately address this function. If you have any questions, please speak to your broker or your on-line trading entity.

Now, you are done for the week. Next week you will repeat the same process. If you do not end up doing it until later in the day on Monday, or even on Tuesday, it most likely will have no bearing on your end-result – this is a 4-month trade, not a
one-day deal.

Now, assume it is week 16. When you log in, you will notice that the portfolio at the bottom is blinking which indicates it is time to sell. Please obtain advice from your broker or online-trading entity on selling procedure and all the details that require your attention.

Remember, you may also have stocks to buy this week, so you may decide that the stocks you just sold are funding for the purchases of the new portfolio, thus keeping your money in the market.

After a few months, assuming profitability, you may want to re-evaluate your portfolio, and see whether or not you need to increase your purchase size. By doing this you will compound your returns and advance the speed at which your investment will grow.

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4. What are the various ratings that the FTMT black box produces and what do they mean?

The FTMT 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)

FTMT black box rates over 10,000 stocks with institutional holdings. The percentages shown may differ slightly for each quarter analyzed.

An FTMT black box stock rating that has been in or near the Neutral range for some time may suddenly become Bullish, or may decline and become Bearish. Almost every stock will eventually move one way or the other.

You may notice that we consider a very low rating as a sign that the stock has already significantly declined in price and may have reached its bottom, whereas we consider a very high positive rating as a sign that the stock will move higher. The reason for this is that a stock can rise indefinitely where as a stock can only decline 100%. A very negative rating will often mean that the price of the security has already dropped due to a news event or negative announcement. However, a very highly rated stock may result from information that has been newly uncovered by a number of fund managers, but has not yet been discovered by other funds or the public. And even if the highly rated stock has moved up in price, experience shows that the stock most likely has much further to go.

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5. How can I tell when to buy a stock based on the FTMT black box system?

The only way to maximize the value of your subscription is to pay attention to the stocks posted in the Special Bullish portfolios section of the web site. Feel free to research individual stocks yourself, however, with Jeffrey Steinberg, the creator, developer and founder of the proprietary technology of the black box, and his 11 plus years of experience selecting the best stocks you are in the best of hands!

Look for stocks with either a high rating or a rating that has made a major positive move from the previous quarter. Stocks rated "Bullish" or greater are particularly good candidates. Our bullish ratings are as follows:

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)

In some situations a high reading can be misleading.

For example: IPO’s and secondary offerings. If a stock has a very high rating, be careful! When a stock has a very high rating you will see the following:

Warning: This stock has an unusually high FTMT black box rating or is showing only new positions. Please check to see if this is a newly issued stock or if the company has recently completed a secondary offering. If so, be careful. For newly issued stocks, our black box is not meaningful until the stock has been on the market long enough for fund selling activity to take place.

For companies which have recently completed a secondary offering, the same general principle applies. The offering itself will often result in a high rating. It is advisable to wait several months before you consider the particular rating of a secondary offering scenario.

Companies who have recently changed their name or ticker symbol may also have a very high rating, which can be misleading. In these cases, the new positions being taken by the funds are not a true signal of a professional consensus, but rather, the buying and selling under a new ticker symbol.

PLEASE BE ADVISED: That with Jeffrey Steinberg, WE AT FOLLOW THE MONEY TRAIL ARE THE BEST QUALIFIED TO SELECT THE BEST STOCKS.

Sometimes a high rating can be misleading if it is based on less than, say, 10 funds. In these cases, there are fewer funds forming the consensus that is the basis for rating. There really is no magic cut-off number. If you choose to do it yourself use your own good judgment and look carefully at the details of the various position changes. Remember, the easiest way is to rely on our expertise and use of the system to provide you with stocks.

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6. Why are so many of the stocks I own not highly rated?

For those of you using the FTMT black box for the long side, do not be discouraged by ratings that are not in the green. About 95% of the stocks we rate have an FTMT rating value of Neutral. This value does not mean that the stock will not perform favorably. Rather, this reveals no meaningful or significant buying or selling consensus in that stock among fund managers.

When you see the FTMT number jump up and out of the neutral range, consider buying more of the stock. Conversely, if a stock's FTMT rating has been neutral for a while and you see it fall below the neutral range, use this as an alarm, and re-evaluate the stock to see if any of the reasons why you bought the stock have changed. This is valuable for those who want to use the FTMT black box on the short side.

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7. If there is a high FTMT black box rating, does that mean that the funds have already driven the stock price higher, and that I have missed my opportunity to invest?

In almost every case the answer is NO. Our posted portfolios show that the stock will almost always continue to move higher. If our black box produces a high value, but the actual number of net shares bought by the institutions is not a large percentage of the company, the initial institutional fund buying often has little effect on the stock price. Quite often a move upward in the stock price will not occur until later, when other institutional managers and the public discover what the buyers have found out, or simply that the professionals have been buying the stock. For example, the FTMT black box may produce a high rating based on significant new positions taken by small funds buying into a midsize company. The stock may not immediately increase in value, but the managers who bought the stock may have discovered some valuable information.

Furthermore, even if the price has begun to rise when the black box first produces a high value, do not be afraid to buy the stock. Positive momentum builds over time. The FTMT black box system gives you the opportunity to get in early, before the rest of the world.

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Follow the Money Trail, LLC is not a registered Investment Advisor or Broker/Dealer, and does not provide investment advice or recommendations. Subscribers to the Follow the Money Trai Black Box are advised that the information, opinions, and analyses included in our web sites or in any communication are based in good faith on sources believed to be reliable, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness, or correctness. Past performance is not necessarily indicative of the future performance of stocks posted. None of these postings, nor the Follow the Money Trail Black Box rating, nor any other information provided on our web sites or through any other communication constitutes a recommendation to buy or sell stocks or any other investment. Investing involves the risk of loss and readers are urged to consult with their own independent financial advisors with respect to any investment.

   
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