The Future of 3 Stocks on Fire

[David Randolph]

The Future of 3 Stocks on Fire

1. Brief historical review

Everything started on a beautiful morning in April 2005. Out of nothing, I wrote an e-mail to my partner Ramsburg telling him to make a website fast, I wanted to share my strategy of trading stocks with other traders and investors. The name was «www.3stocksonfire.org». Amazingly the URL was available, Ramsburg, an experienced stock market trader himself, loved the idea and worked day and night to program this website.

Since then, we've made a public and diversified portfolio of US stocks which is up 140% (543% annualized) and 3stocks grew day by day at a rate that we did not expect at all. But we're very pleased of having, at this time but increasing every hour, 2492 registered users and about 2 million page views per month. Our registered users wrote more than 13,000 posts in just about 3 months and we want to thank everyone who has in some way participated in the success of 3 Stocks on Fire.

2. Acknowledges

I want to thank everybody who registered on 3 Stocks on Fire, specially the ones who wrote messages or made donations, this has really helped us facing this project in an ever more serious way and brought responsibility to our work. You've made great picks on our boards and exchanged phenomenal trading ideas, from which I've learned a lot (in fact, I believe this has been one of the most fruitful learning times I've had in my 10 year trading career).

I want to thank you all !

3. The future

3 Stocks on Fire is just a child, a child with a bright future, if it gets your help. There are a lot of things we're going to do, starting October 1, 2005. First of all, me and Ramsburg created a company, based in Delaware, which is designated «Stocks on Fire LLC» and this company is now the owner of this website. We want to get more time and get even more dedicated to this project turning ourselves into professionals (at this time we're doing this just part-time, with a lot of effort). So we're moving part of 3 Stocks on Fire to a subscription based service. Our long term idea is to grow this project into other areas related to the financial markets and turn «Stocks on Fire LLC» into a publicly traded company (we'll start by the Pink Sheets :-)), so maybe some of you can join and grow with us through this journey. We've already made some contacts in the US concerning this. Our ultimate and final goal is to one day, who knows, open an Hedge Fund in the US.

Not all content of the website will be paid, just the premium content, I'll explain that next. You may now be wondering: «if these guys were such great traders, why would they need the subscription fee?» The answer is that we trade for performance and wealth creation, not for income. We rely on other sources for income, since we know (from personal experience of being full time traders for years) that trading for income brings a lot of financial pressure, and financial pressure with time leads to stock market losses. Besides that, we believe our service, specially the part of a publicly managed portfolio, will be better if it is only known by subscribers.

We want to be full dedicated to this website, and in exchange we'll offer what we consider to be a very valuable service to our subscribers.

4. Our service

As you probably already know, we have several message boards. The boards Stock Picking, Penny Stock Picking, Stock Talking, Story Behind the Move (will change it's name to Long Term Picks) and the inevitable $1,000,000 board will continue to be free for all registered users.

The boards «3 Stocks on Fire», «3 Pennies on Fire» (just created), and «Members Board» (just created) will have a monthly fee to be accessed (starting October 1, free until then - on the Members Board only Honours Members will be able to write messages, reading is allowed and free for everyone just until September 30th). The board 3 Stocks on Fire will continue just as it is now, with the management of a public and diversified portfolio with daily updates to all holdings and comprehensive justifications to all moves. The difference is that all posts will have an answer. The «3 Pennies on Fire» board will be very similar to the «3 Stocks on Fire» board, but there we'll manage a public and diversified portfolio of penny stocks (which starts with just $10,000 and is reset every year). Subscribers will be alerted by e-mail every time there is a buy or sell recommendation.

The «Members Board» is where every Honours Members can ask a question or exchange new trading ideas and stock picks with other Honours Members and our team (it is possible for our team to expand in the future). We'll do our best not to leave unanswered messages on this new and all important board.

5. Rules of subscription

As we've always said, we don't forget the people who made donations to our website, when they were not obliged to. There were many people that made donations, and the value of their donations will value its triple in subscription fees. For example, anyone who has donated $50 without any obligation will have 3 months free of our Premium Service, this means until the end of 2005.

A donation made between now and the 30th of September will be valued as a double in subscription fees. So, if you donate $300 until the 30th of September you'll get one year of our Premium Service. If you donate $150 now you'll get 6 months of Premium Service, that is, until the 31st of March 2006.

All registered users who make donations will turn into Honours Members and automatically access the Premium content of the website as long as the «donation value» permits. Before the «donation value» ends you'll be notified by e-mail to start an automatic monthly payment using Pay Pal (you can turn it off whenever you please).

Starting October 1, the premium areas of the website will only be accessible to our dear subscribers. The price of the service will be $49.95 per month (every subscriber will receive a T-Shirt from 3 Stocks on Fire when he makes his first payment - $49.95 is the cost of making 2 trades per month considering average brokerage fees. I think the service is worth this and possibly much more. Sometimes our trades show a loss and we still have to pay brokerage fees, but I assure you every month spent with 3 Stocks on Fire will be a profitable month, at least in terms of acquiring financial markets knowledge and we'll do our best to help you growing your equity month after month.)

6. Final message

The stock market is a hard game to win. Every time we think we have the key to success there comes another psychological barrier to take us down. The learning process is long and painful. In my 10 year trading career and more than 5000 trades executed (for years I was day trading futures) I can tell you I know about loss and victory. Every man makes mistakes (this is even truer in the stock market), it is the one who learns from his mistakes and successes that will prosper.

Everyday of my life over the past 10 years was spent looking at charts, quotes, reading dozens of books and learning everything I could about the art of speculation. The learning process had a lot of hard work and cost me a lot of time and money. I can honestly say that I am now a speculator. I'm proud of what I am, since I believe this is one of the most difficult endeavours for a man to take.

I am a speculator and I believe I can teach what I know (and what I will still learn) with clear and objective messages. More than that, you can use, if you want, my experience and knowledge to follow my explained picks and make money year over year in the stock market, following a safe and very profitable strategy as I've shown in the last couple of months with a 140% return on a diversified public portfolio (543% annualized return - but of course, don't expect this rate of return to continue for long, don't extrapolate the numbers. 50% average annual return will make anyone rich in the long term).

Besides this, the «Members Board» will be a constant brainstorm of stock market strategies and picks. There's no doubt great, great traders will be there, posting their ideas and picks, which will be analyzed by the 3 Stocks on Fire team.

As a final message, me and Ramsburg, we love the stock market. We want to go deeper into this, and want to take you with us. So come on, let's party and profit on 3 Stocks on Fire !

[Irishman]

David and Rams-
Count me in. I'm with you all the way.
Irish

[Terliso]

can you make it $20 per month 

[valueseeker]

Hi David and Frederick,

You can count me in as well. It's good that my donation a few days ago tripled its value. :-)

[stocky]

Oops, not expected that but anyway I am staying, infact have to get hold of pre-subscription prizes 

I see 3  very important benefits:

1. There is no free lunch. Infact free is at times not good. Hope it will add more fire to the existing 3SF.

2. Will halt transformation of this place into another yahoo MB.

3. Hope that my trading decisions will have input from 'professionals'. And that is the biggest reason for me to stay in.

[stocky]

I am excited about the 3 pennies portfolio [and 10k size]. Now I have portfolio to which I can relate to

[vivdcosta]

David and Ramsburg,
It was a bit unexpected but I completely understand that your expertise deserves to be appreciated financially as well. I was just wondering how are you going to control the unsubscribed boards ? Its possible that some member could leak the member postings in the other boards, right ?

[cumulina]

The decision to make 3SOF a subscription service was a good one, I believe!

I must admit that I've been a bit wurried about how you guys - with only 24 hours pr. day available - would be able to manage your regular work, family life, stock-picking, answaring posts on the boards - and even sleep. 

So: congratulations with your new "baby".

I do also agree with stocky:

Oops, not expected that but anyway I am staying, infact have to get hold of pre-subscription prizes 

I see 3  very important benefits:

1. There is no free lunch. Infact free is at times not good. Hope it will add more fire to the existing 3SF.

2. Will halt transformation of this place into another yahoo MB.

3. Hope that my trading decisions will have input from 'professionals'. And that is the biggest reason for me to stay in.

1. and 3. needs no comment.
2. It's amazing how few attempts there have been to turn this site into a "yahoo-board" - and every time the rest of the boards members, + off course David and Frederick, have been able to put a stop to it - always with nice and courteous remarks (and "smites")

I also agree with Terlisa:

can you make it $20 per month

$49.95 pr. month is kind of steep for us small traders. 

Well, I get a "free" ride for a little while, so I'll have time to see....      

Good luck, guys!

[basanlas]

David,

The subscription price is a nominal fee to access the great info you have been giving. I will be on board with you. I myself am not a full time trader and unfortunately I still have to work during the day. A couple of questions

1.At what time (USA)will you update the portfolio when you go to subscription based?
I have had to get off to work many days and was unable to access your updates early enough and lost out on some potential picks.


2.Since you will now be a registered corporation and a financial consulting website have you and Frederick considered partnering with a brokerage house to do  "auto trading ". That is, you supply the picks , with buy and sell signals, directly to the broker and if your member's have so inclined, they have you essentially manage their portfolio based on the parameters they set up(ie.. 6.66% of available $$$ in their account on each trade)Since your strategy is mostly to hold until close it might be a bigger opportunity if this service was also offered.

Looking forward to many great picks in the future

[David Randolph]

David and Rams-
Count me in. I'm with you all the way.
Irish

Thank you Irish 

can you make it $20 per month

Well, $20 is less than what you pay to make just 1 trade per month. $50 is about 2 trades per month in most brokerages. We thought about a lower price, but we prefer to have less subscribers so our service is really good for everyone. Also, we've seen what other similar services cost and ours will be below average. We want to make such a good service that you'll think $49.95 is little compared to what you get. If you make a 100% profit trade on $2500 on our recommendations you'll have more than 4 years of subscription fees payed. And I bet you we'll get at least one of those picks a month, like we've done in the past ...

Hi David and Frederick,

You can count me in as well. It's good that my donation a few days ago tripled its value. :-)

Thanks valueseeker, we believe this was a good way to compensate our dear supporters at the beginning of this project. This way you'll still have many months to judge our service.

Oops, not expected that but anyway I am staying, infact have to get hold of pre-subscription prizes 

I see 3  very important benefits:

1. There is no free lunch. Infact free is at times not good. Hope it will add more fire to the existing 3SF.

2. Will halt transformation of this place into another yahoo MB.

3. Hope that my trading decisions will have input from 'professionals'. And that is the biggest reason for me to stay in.

Thanks stocky, you're welcome  , I agree with all you've said. With fewer people we'll be able to really give good advice and service. We'll work about 12 hours a day on this each, me and Ramsburg. There will be no stop to searching and studying stocks, I can guarantee you that. Again, thanks for your support 

David and Ramsburg,
It was a bit unexpected but I completely understand that your expertise deserves to be appreciated financially as well. I was just wondering how are you going to control the unsubscribed boards ? Its possible that some member could leak the member postings in the other boards, right ?

Yes, it is possible, but I don't think any Honours Member who made a donation or payed a subscription fee will post the premium content on the free boards. Or, maybe he will, after all Honours Members know the analysis and possibly acted on it 

The decision to make 3SOF a subscription service was a good one, I believe!

I must admit that I've been a bit worried about how you guys - with only 24 hours pr. day available - would be able to manage your regular work, family life, stock-picking, answaring posts on the boards - and even sleep.

So: congratulations with your new "baby".

I do also agree with stocky:

I also agree with Terlisa:

can you make it $20 per month

$49.95 pr. month is kind of steep for us small traders.

Well, I get a "free" ride for a little while, so I'll have time to see....

Good luck, guys!

Thanks a lot cumulina ! We'll do our best to perform and give you a valuable service, much more than the $49.95. My education as a trader cost me a lot more than that. You're right, you have until the end of 2005 to know if the service interests you or not. Again, thanks for your support from the beginning of 3 Stocks on Fire (not just the donation, but other support, yes, I've read you on that board from Denmark defending our website ) and looking forward to continue working with you on this wonderful journey through the stock market.

[la-onda]

as I have stated in my personal message to Frederick & you,
I will be also joining the "club"!
could you please provide me my total ammount I have forwarded you?

TIA

OLIVER

[David Randolph]

Thanks a lot la-onda 

Absolutely, Ramsburg is on his way home and he has all that data, we will send private messages to everyone with the amount donated and the exact date until the subscription fee is already paid.

Again, thanks for your support, we'll do our best to be up to the responsability.

[David Randolph]

David,

The subscription price is a nominal fee to access the great info you have been giving. I will be on board with you. I myself am not a full time trader and unfortunately I still have to work during the day

Thanks for your support basanlas, we'll do our best to perform.

1.At what time (USA)will you update the portfolio when you go to subscription based?

Until 30th of September it will be before the market opens on the next morning. Beginning October 1st it will be 1 hour after the market close, same day, NY time.

2.Since you will now be a registered corporation and a financial consulting website have you and Frederick considered partnering with a brokerage house to do  "auto trading ". That is, you supply the picks , with buy and sell signals, directly to the broker and if your member's have so inclined, they have you essentially manage their portfolio based on the parameters they set up(ie.. 6.66% of available $$$ in their account on each trade)Since your strategy is mostly to hold until close it might be a bigger opportunity if this service was also offered.

Great idea basanlas, we'll think about it and make some research on the subject, thanks a lot !

Looking forward to many great picks in the future

Me too !   

[Weightlifter]

I agree with Cumlina,,$49.95 is a bit high and also...Members who have already contributed,,should be given a "Lifetime Discount" to the subscription service...

[David Randolph]

Atalltexan wrote me this private message but I asked permission to post here because I believe some of our registered users have the same doubts:

David,

You have demonstrated the value of your board, and I will most certainly be a member going forward.  Noticed you mentioned about the value of prior contributions (triple), and those made between now and the end of Sept (double).  First, how will members know exactly where they currently stand (will their be a way to check your standing, when subscription ends, etc), and can we build on it (i.e. during the next month (add a year or two during the double investment period) ?

Thanks

In the next few days (possibly today), every Honours Member will receive an e-mail or private message with the amount donated and the date until the service is already paid.

Some days prior to the end date you will receive an automatic e-mail saying «you have x days to make your payment», something like that. There will be an automatic software to manage the access to content only to the people who have paid the subscription (you will be able to program pay pall to make the monthly payment and never have to worry about it again).

«and can we build on it (i.e. during the next month (add a year or two during the double investment period) ?»

Yes, imagine you have donated $50 atalltexan (Ramsburg is the one who has that data). You get the triple, that is, $150, or the month of October, November and December, 2005. To get an extra 9 months you need to donate, between now and September 30th, $225. This will value it's double, that is $450, which accounts for the nine month period.

Thanks a lot for your support !