Frequently Asked Questions
We have posted the most frequently asked questions "FAQs" from our members. If you have a question, please scan through our list. You may find other questions that you may have not thought about. If you are not clear about an answer or your question is not on the list, we invite your response and additional questions.
- Can you tell me more about buying and and selling ETFs?
ETFs can be flexible and easy to trade. Investors buy and sell them like shares, through a broker. Using ETFs, investors can also employ traditional share trading techniques, including stop orders, limit orders and margin purchases (if available).
- Can you provide a list of the leveraged and inverse gold and silver ETFs?
Leveraged and Inverse Gold ETFs
DGLD - VelocityShares 3x Inverse Gold ETN
DUST - Direxion Daily Gold Miners Bear 3x Shares ETF
GLL - ProShares UltraShort Gold ETF
NUGT - Direxion Daily Gold Miners Bull 3x Shares ETF
UGLD - VelocityShares 3x Long Gold ETN
Leveraged and Inverse Silver ETFs
AGQ - ProShares Ultra Silver ETF
ZSL – ProShares UltraShort Silver ETF
USLV - VelocityShares 3x Long Silver ETN
DSLV - VelocityShares 3x Inverse Silver ETN
- Regarding the Wash Sale Rule, is this still true that selling one exchange-traded index security at a loss and buying
Selling one exchange-traded fund at a loss and buying another exchange-traded fund within 31 days will not trigger the wash sale rule, provided they're different exchange-traded funds. Selling 100 shares of the GLD, which tracks the gold ETF, at a loss and then repurchasing another 100 shares of the GLD within 30 days will trigger the wash sale rule, meaning the loss would be disallowed. (You can adjust the basis in the new shares to reflect the loss, though, effectively letting you claim it when you sell the replacement batch.)
- How does the Wash Sale Rule differ for Canadian investors?
The wash sale rule is a U.S. tax provision and applies only to persons paying U.S. taxes. In Canada, the Canadian Customs and Revenue Agency has a like rule, it is called "superficial loss", and works in a similar manner, except that it applies for 30 days, not 31 as in the U.S.
- Which online broker should I use to buy or sell a stock?
Visit google.com and type in the key phrase "online brokers". Do a little research to find which firm is best suited for you. Commissions are reasonably low for most online brokers.
- What is short selling?
Short selling means to sell shares you've borrowed in hopes the price will fall. Here's how it works: you borrow the shares from your broker and sell them. Now you're paying interest on the borrowed shares, but you're also earning interest on the proceeds from the sale. Sooner or later, you have to replace what you've borrowed, but the hope is that the stock price will fall. Then you can buy back the shares for less than you sold them for, replacing what you borrowed and pocketing the difference. When you buy back the shares, this is called "buy-to-cover".
- Should we use a market or limit order to buy or short a stock?
This is your choice. We suggest and encourage you to ask this same question to your financial professional. In general, you should always try to get the best price. But then again, you may not want to miss out on the trade. A small price differential between a limit or market order is really insignificant for the broad moves of the market. If you disagree with our timing or price, you may feel more comfortable in placing a limit order.
- Which ETF should I trade and how much to trade?
We personally believe in diversification. An investor should always attempt to minimize risk, meaning never put all of your eggs in the same basket! We can not advise anyone as to how much capital they should trade. Everyone has their own financial objectives and risk tolerances. We strongly encourage you to consult with your financial professional.
- When did your system go live?
We went live on July 25, 2012.
- What is the purpose and objective of your timing system?
Our system is designed to consistently outperform the buy-and-hold strategy of investing on a yearly basis. Our job is to stay focused on the broad moves of the market and not on the day-to-day fluctuations. Please visit our track record – we feel it speaks for itself. We encourage you to thoroughly research any web site that claims to have produced exuberant results. A worthy phrase to remember "if it's too good to be true, then it probably isn't". We stress caution with other systems, especially on the Internet. Bottom line: Our primary goal is to help our members move their money forward.
- How are your timing signals produced?
Our mechanical system combines trend-following' and 'momentum' to identify tradable impulses. This method uses what we call 'reactive technical analysis'. Instead of trying to 100% forecast or predict the market's direction based on past market data as in interpretive technical analysis, reactive technical analysis is geared to reacting to the market's movements as soon as possible after they occur.
- What does your trading strategies offer for the investor and trader?
We feel our trading strategies:
- relieve the investor of having to depend on financial analysts' recommendations and on company information, that may or may not be truthful.
- eliminate the emotional turmoil and confusion that all day traders (and option and future traders) constantly experience.
- provide a lower risk method of investing, since you are investing in a broad market (either long or short) as opposed to a single stock that is subject to higher risk, volatility, and many uncontrollable factors that can negatively impact stock price.
- consistently beat the long-term buy-and-hold strategy, even in bearish markets. When our timing system gives a bullish signal we are buyers and profit from the rising market. When the stock market turns sour for most, we short sell the market and profit from the decline.
- When should we expect to receive your new signals?
Our signals can be produced and released before, during, or after the market closes. On a yearly basis about 20 trading signals (meaning buy long or sell short) are generated for each index stock (GLD & SLV). At the time of the new signal, members will receive an immediate e-mail alert and/or SMS text message. Members can also visit the exclusive timing signals page with the latest updates through the members login.
- In what trading environment does your system perform well, and are there any flaws?
Our system performs very well when the markets are trending – either up or down, and on all time horizons (i.e., short, intermediate, and long). We estimate that the market trends either up or down for about 75 to 80% of the time. During these times are when, for the most part, we capture those moves and produce profitable returns. Regarding flaws: the system does not perform as well on short-term horizons when the markets whipsaw back and forth within a 5% range (i.e., topping patterns), and for short-term horizontal movement, as in times of consolidation (accumulation or distribution). In fact, no system can produce profits on a consistent basis during these times. We estimate the market may trade in this manner about 20 to 25% of the time. These are the times when our system is most vunerable to small percentage losses.
- Once I have become a member, what will I received through e-mail to let me know that a signal has changed; and
secondly, will there be an explanation as to why the signal has changed?
At the moment a signal has changed, members will receive an immediate e-mail with the latest updates for each ETF. The update will include the ETF, price, and direction (buy long or sell short). In regard to the 2nd part of your question, our market timing system is 100% mechanical.
- How do we use your trading systems?
On a yearly basis, about 20 trading signals are generated for each ETF. Members will receive an immediate e-mail when there is any change in status of a signal. Members can visit the exclusive timing signals page with the latest updates through the Members Login to verify that a signal has changed. These changes in signal status can be made during normal trading hours. Members select an ETF they want to trade or both of them for greater diversification based on the signals produced. After your trade has been placed, all you need to do is wait until the next e-mail alert with a change in signal status.
- As soon as I become a member and visit the timing signals page, do I enter the
trade immediately even if the current stock price has already moved in a specific
This is entirely up to you and your professional advisor for a final decision. If you like, it is sometimes best to sit out (hold cash) and wait until the next signal, especially if the market has moved significantly since our last signal.
- Is investment news and other research data taken into consideration?
For the most part, the answer is no. We are always aware of the financial news, but this is not directly factored. However, the mathematical equations used to derive the indicators and signals, captures all data.
- Who are your members?
Our members come from many countries in the world. We believe our members are professional investors, stockbrokers, money managers, financial planners and investment advisors, and individual investors. We also believe our members are those who have tried other investing strategies (i.e., day trading, buy-and-hold stocks and stock mutual funds, etc..) and have lost money through those strategies. Investors and traders alike are now looking for "and have found" an honest and lower risk method of investing through our system. For those who truly follow our methodology will notice a gradual increase in their portfolio as time progresses.
- What is the difference between a long or short signal?
When the signal says "long", this means place a trade to buy the stock. A "short" signal means short sell the stock. If you do not wish to use margin as with short selling (i.e., borrowing stock from your broker in order to buy-to-cover at a lower price – meaning betting that the price of the security will decrease), you can simply remain in a cash position until the next buy signal is generated.
- Does your company also trade the gold and silver ETFs?
We rarely trade ETFs. However, we do use our methodology to trade government retirement funds. We believe our system provides a lower risk method of investing, as opposed to trading any individual stock, which is subject to higher risk, volatility, and many uncontrollable factors that can negatively impact stock price.
- Can I join for a 6-month period instead of a year?
We currently do not offer a 6-month period. If we get numerous requests for this option, then we may consider this option in the future.
Our company is committed to protecting your privacy while using our site. This is explained in detail in our Private Policy page.
- Does your company offer any free trial periods?
We do not offer any free trials. However, we do offer a 48-hour grace period. Meaning, if our system is not right for you, we offer a 100% refund.
- Will your company manage my account?
At this time, we do not manage any personal accounts for our members, and probably will not in the future. However, we can direct you to a financial manager whom we respect or you can maintain your account with an online broker.
- After I become a member is there confirmation of this?
Once authorization is approved, you will receive our confirmation response e-mail. You will then be able to log into the system and will be automatically directed to our exclusive timing signals page with the latest updates!
- Who provides the signal changes and information in the newsletter?
In short, the site is owned and operated by Robert W. Dillon, Ph.D., who is a Technical Chart Analyst. His service provides one of the most credible and successful trading systems in the world today. He has been trading stocks using technical analysis for over 30 years. Due to his success in the financial world, he became semi-retired at the age of 41. Since then, he has been providing financial guidance to his customers. His education includes multiple degrees (B.S., M.S., and Ph.D. degrees in Geology and Geophysics). He has a vast amount of experience in interpretation of highly complex charts. His knowledge and skills with charts combined with his experience in trading stocks using technical analysis gives him the upper hand in making logical investment decisions to help members achieve financial success. He holds the highest level of ethical standards and avoids any conflicts of interest. Trading signals may be provided to Registered Investment Advisors (RIAs) who manage Assets Under Management (AUM) on a contract basis.
- How can I contact the editor/technical analyst if I have a question?
All correspondences are done through e-mail. You can contact Dr. Dillon at firstname.lastname@example.org
- Once I become a member, can I change my email address in the future?
Yes, just send an e-mail to email@example.com and include your old and new e-mail addresses.