Help - FAQ

How do I get started? Should I initiate the trades in the existing open portfolio?

As a new subscriber, we suggest waiting for the next new recommendation before undertaking any trade. Phil Erlanger looks at a variety of technical factors that all must confirm a trade before he makes any recommendation. Therefore, you can have maximum confidence that when he does make a recommendation, the odds for profitability are strongly in your favor. Since market conditions may change quickly, Phil constantly monitors the markets and his specific recommendations in real time. Phil uses moving stops for each trade to maximize gains and limit losses. Since it is impossible to know when a trade will be closed out, it is best to enter each trade at the time of initiation, thereby giving yourself the best chance to be successful.

Can I trade options with Erlanger Squeeze Play recommendations?

You should use Erlanger Squeeze Play recommendations for the purpose for which they are designed, which is to buy and sell stock. It is important to note that sometimes a recommended trade may take many weeks before any movement in the stock begins in earnest and several months to complete its move. If you use options as a substitute for the suggested stock position, you may be frustrated because your options may expire worthless before the move in the underlying stock takes place. Then, when the large move does take place, you will not be in the trade, and may have used up a good part of your capital as well on a losing options trade.

What percentage of my portfolio should I invest in one recommendation?

We make general recommendations about the companies and positions to all of our subscribers. Only registered brokers and investment advisors may consult with you on the size and individual suitability of a specific investment. You should note that as you divide your capital over a number of recommendations, rather than putting all of your funds in any one trade, you also spread your risk. Since any trade can be a loss, you are best protected by holding multiple positions. The theory of spreading your risk over a number of investments is the basis of portfolio investments used by mutual funds.

What account size is needed to trade Phil's recommendations?

There is no maximum or minimum amount required to participate in Erlanger Squeeze Play recommendations. These recommendations can be of two types: Buy (long) when the stock price is expected go up, and sell (short) when the price is expected to go down. As we noted above, the size and suitability of a specific investment is an important one and should be considered carefully in consultation with your broker and investment advisor.

What is shorting a stock and how do I execute a short trade?

Shorting a stock means selling the stock of a company expecting that the company's stock price will decline. Mechanically, it is no harder to sell stock short than to buy stock. An investor who is shorting a stock merely directs a broker, or executes instructions online, to "sell short" a specific number of shares of stock. Technically, the short seller is borrowing these shares from someone who owns the stock (a broker will automatically perform this transfer) and then is deemed to have sold the stock at the current market price. The goal of short sellers is for the stock's price to go down so that when they are ready to close out the transaction, they will buy back the stock at a lower price than where they sold the shares short and pocket the difference as profit.

Can I short a stock in an IRA?

You cannot short a stock in an IRA. Shorting a stock requires a margin account -- a type of account IRAs do not allow.

Do I need a special broker to trade Phil's recommendations?

You can use any brokerage house or online broker you want. The recommendations in Erlanger Squeeze Play are comprised of simply buying and selling stock. For a more in-depth explanation of short selling, you should consult your broker.