Quick-Start Guide
The Alpha Stock Alert Quick-Start Guide By Ted Bauman, Editor of Alpha Stock Alert WELCOME to Alpha Stock Alert! I m thrilled that you ve decided to join this exciting new system. As Banyan Hill s asset protection editor, I m always searching for safe ways to help readers protect and grow their wealth. That s precisely why I launched Alpha Stock Alert I wanted readers like you to have a reliable, hands-off and user-friendly system that would help you steadily prosper over the coming months and years. This system is intended to help all people regardless of wealth, personal background or financial experience become more financially independent. To do that, Alpha Stock Alert focuses on isolating alpha stocks that will deliver reliable returns, while also protecting you from market downturns. Better yet, this is a rules-based system that ll take the emotion out of investing for you. Most people s portfolios underperform because they get nervous or giddy, but an algorithm doesn t get nervous. That s the beauty of it and that s exactly what I was searching for when I set out to create this system. However, I knew I couldn t do this alone. While I do have an economics degree, almost three decades worth of asset-protection experience and I know the investment industry extremely well, there was no way I could create something like this by myself. So in 2016, I assembled the perfect team to help me engineer this new system, including a professional who has more than 30 years experience in the financial industry. In fact, he s been studying, constructing and testing mathematical, rules-based algorithms and investment tools since 2001. Other members of my team have worked with some of the biggest banks and brokerage firms in the world including Credit Suisse, Bank of Ireland and Société Générale, just to name a few. In the end, after millions of dollars and thousands of man-hours designing models and backtesting more than a decade of market data, we created Alpha Stock Alert a service I m truly excited for you to be a part of. In our rigorous 10-year backtest, this system beat the performance of the S&P 500 index 10 times over, up 585% compared to the S&P 500 s 57% return during the same time frame. You can see that illustrated in the chart on the next page. 1
Alpha Stock Alert Outperforms the S&P 500 650 550 Model Benchmark 450 350 250 150 50-50 2007 2009 2011 2013 2015 2017 That s why I guarantee you will have the chance to double the returns of the stock market over the next year. Behind the Alpha Stock Alert System Now, with all that said, I m sure you re excited to get started, so let s get into the details of this system... This system has a history of capturing steady double-digit winners. For example, it made: 25.90% on Costco. 28.50% on Aqua America. 10.40% on Genuine Parts. 34.80% on Hormel. 48.70% on Chubb. As you can tell, these aren t the next high-flying stocks. These gains don t make headlines but that s not what this system is designed to do. It s designed to beat the market by focusing on safe alpha stocks stocks that dominate their industry. And there s more to it. The system also employs a proprietary hedging strategy. As a result, the entire portfolio not only avoided the 2008 crash when the market dropped 58%, but it actually made 220% gains from 2008 to 2012 without short selling stocks or using options. And the gains didn t stop there. As the market turned higher, the portfolio soared 585%. In fact, this system has never had a losing year over more than a decade of backtested data. That s what sold me on the system: Not only does it have steady money-making potential, but it also keeps your assets safe even during market downturns. It s the perfect blend of low risk and high reward. 2
With that in mind, here are the basic elements to know about this worry-free system: 1. One half of the portfolio will own the stocks our alpha code has targeted for us. There will never be more than 10 stocks in the portfolio at any given time. See, Alpha Stock Alert is based on our alpha code, which looks at quality, value, growth and sentiment factors within the Russell 1000. Using these four factors, the model screens and ranks 1,000 stocks for us every week. We then rank them from No. 1 to No. 1,000 and then we select the top 10 to invest in. These stocks may stay within the top 10 for weeks at a time, and when they lose that ranking, that s when we sell. Using this model means our stocks will have solid market caps and decent liquidity. So these won t be difficult to trade. Moreover, it means we don t get caught up in the emotional aspect of investing the primary reason most investors underperform. It does all the work for us. 2. The other half of the portfolio will follow a hedging strategy: For this portion, we ll simply follow one exchange-traded fund (ETF). An ETF trades much like a stock does, but they re actually funds that hold a mix of assets stocks, commodities or bonds. You just need a simple brokerage account to trade these. Through an ETF, we get the chance to benefit from practically any part of the market going in any direction. Of course, in our system we ll only hold one ETF at any given time. In fact, at any given time, we ll either be following an ETF that s long or short the S&P 500. So during the bullish phase of the market, we ll have a chance to capture a nice market return. And during bearish phases, we ll get a chance at gains not normally captured in the long-only model. As such, you should only expect a new ETF recommendation when the system triggers a shift in the broader markets. 3. Finally, there is the whipsaw rule, which states that once a stock has been sold from the portfolio, it cannot be bought as a portfolio holding again for 60 days. This provides us with more trading consistency and lowers the trading costs associated with frequently legging in and out of the same position. Now that we ve covered the basics, let s get into what you can expect for this service. What to Expect Trading Frequency: One of the main things to keep in mind is the trading frequency. We ll be following our alpha code, and that may mean one to two trades a week on average. It shouldn t take more than 30 minutes a month in total. Just remember to keep an eye out for any of my dispatches labeled Trade Alert. That will let you know a timely trade is waiting for you. When the alpha code allows it, I will send you a trade on Mondays after the market closes with easy-tofollow instructions on which stocks I m recommending we buy or sell the next day. During any lulls in trading, I will update you on the portfolio or answer any questions I find in the mailbag. So please send me any questions you have about the system. I want to make sure everyone can trade this service confidently. My email is alphastock@banyanhill.com. Don t feel you have to keep up with these weekly updates if you don t want to. These are purely for me to check in with you on our holdings, the market and anything else on your minds. That way, you can be comfortable and confident when making our trades. 3
Holding Period: Our positions may be held for just a few weeks while others may be held for months on end as we let the stock run. Either way, you ll know exactly what to buy and sell each week based on our alpha code. (Note: Remember, the model portfolio will never hold more than 10 stocks at any one time.) Again, this is what makes our system so easy and reliable. We ve created a proven strategy that does most of the work for you, so you don t have to be worried about the daily machinations of the market. To Get Started: All you have to do is set up a brokerage account if you haven t already. That s it I won t recommend any positions that can t be traded in a typical brokerage account. But if you ever have any trouble placing the trades, just send me an email detailing what happened. You can also sign up for our text service, which will alert you whenever a trade alert has been issued. I know you can t watch your email at all times, so this will allow you to rest easy knowing you aren t missing a trade. Click here to sign up. To secure this service, just remember to follow the directions we immediately text you upon signing up. When you get a chance, you should also familiarize yourself with the website. In it, we ll have the eportfolio available 24/7, so you ll always know what s happening. There is also a section for the archives, in case you ever want to reread a dispatch, and a Getting Started section, which holds this trading manual. Again, thank you for joining Alpha Stock Alert. With our proprietary alpha code, you can finally have the comfortable, wealthy retirement you deserve, and your money will keep growing all while you re protected on the downside. I m excited to get you started. Kind regards, Ted Bauman Editor, Alpha Stock Alert 4
Banyan Hill P.O. Box 8378 Delray Beach, FL 33482 USA USA Toll Free Tel.: (866) 584-4096 Email: http://banyanhill.com/contact-us Website: www.banyanhill.com LEGAL NOTICE: This work is based on what we ve learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It s your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don t trade in these markets with money you can t afford to lose. Banyan Hill Publishing expressly forbids its writers from having a financial interest in their own securities or commodities recommendations to readers. Such recommendations may be traded, however, by other editors, its affiliated entities, employees, and agents, but only after waiting 24 hours after an internet broadcast or 72 hours after a publication only circulated through the mail. Also, please note that due to our commercial relationship with EverBank, we may receive compensation if you choose to invest in any of their offerings. (c) 2017 Banyan Hill Publishing. All Rights Reserved. Protected by copyright laws of the United States and treaties. This report may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Banyan Hill Publishing. P.O. Box 8378, Delray Beach, FL 33482 USA. (TEL.: 866-584-4096) 5