How to use the 3 SOF Premium Service

[David Randolph]

The 3 Stocks on Fire Premium Service is composed of 3 areas for Portfolio Management, 6 Message Boards and a Daily Newsletter.

3 areas for Portfolio Management:

3 Stocks on Fire

The 3 Stocks on Fire Portfolio is composed of common stocks traded on the AMEX, NASDAQ and NYSE. Each position on an individual stock has a limit of 6.66% of total capital, which means our team needs to hold 15 different stocks to be full invested, and that's the limit (we don't go into margin). The 3 Stocks on Fire Portfolio can have long and short positions on stocks (mainly long).

3 SOF Fast

This is the Fast Portfolio area. It is suited to small investors that still don't have the trading capital to apply diversification rules as set on the 3 Stocks on Fire Portfolio. This Portfolio starts with $15,000 at the beginning of each month and is reset at the end of the month. It holds from 0 to 3 stocks maximum (mainly long, but it is possible we open short positions). We need to hold 3 different stocks to be full invested, 33.33% of capital in each stock. We look for momentum plays in very active stocks traded on the Nasdaq and NYSE.

3 Pennies on Fire

This portfolio started with just $10,000 at 1st of August, 2005. We only trade OTCBB stocks here (no Pink Sheets yet). The money management rules are that we can only invest 10% of the portfolio in one single stock, which means we need to hold 10 different penny stocks to be full invested.

6 Message Boards:

3 Stocks on Fire

When a stock is to be bought for the 3 Stocks on Fire Portfolio, we initiate a thread on this board with the stock ticker symbol on the title of the thread (while the market is closed, we never recommend a stock when the market is open). The first post has the justification for the trade, both technical and fundamental.

Everybody gets notice, from this Message Board and the Daily Newsletter, of what stocks we're about to buy, so everybody can get the same price we get for the 3 Stocks on Fire Portfolio (we usually buy at the opening price).

After a stock is bought, we update the initial analysis everyday, setting a trading plan. You can ask questions, make comments, add analysis or new information to the stock's threads, so you can improve the analysis and the trading plan, for benefit of all members.

We set a trading plan so everybody knows when we'll sell, or in what conditions, before we actually take action. When a stock held by the 3 Stocks on Fire is sold, we move the thread to the Previous 3SOF Picks Board.

This Board is usefull to show the reasoning behind each trade and hold/sell decisions. You can/should interact with our team so we can learn with each other. Every question and comment is welcome.

3 SOF Fast

This Board works like the 3 Stocks on Fire Message Board, but here we post the picks and analysis updates for the very active stocks held on the 3 SOF Fast Portfolio. You can ask questions, make comments, say if you're selling or buying (you can do whatever you want with your money, of course), tell about your day trades, whatever.

We won't make day trades because the manager of this portfolio (David Randolph), doesn't watch the intraday action, just the opening and closing action. He always has a previously made trading plan to meet and answer to all market conditions.

3 Pennies on Fire

This Board works exactly like the 3 Stocks on Fire Board, with the exception that there aren't daily updates, just when necessary (when there are major news or technical developments).

But Members can update the analysis themselves if they please. Our team would be thankful. 

Members Corner

This Board is used by our dear Members to exchange stock picks, trading strategies and whatever they please. They can ask general question to our team here.

Knowledge Center

This Board is used to learn about technical analysis, fundamental analysis, trading strategies, sources of information, stock market history and stories about the greatest traders of all time.

Strategic Orientation

This Board is used by the 3 Stocks on Fire Team to make general market analysis and sector analysis. These macro analysis will tell our team what percentage of cash, long stocks and short stocks to use and also what sectors to favour or avoid on the 3 Stocks on Fire Portfolio

Daily Newsletter

It is very important that you always get and read the daily newsletter to use the 3 Stocks on Fire Premium Service with efficiency. The newsletter is sent to you everyday before the opening bell.

On the newsletter we say what were about to buy (at the open), and for which portfolio. We also send links for the daily updates on the stocks held with specific HOLD/SELL instructions.

You should always read this newsletter so you won't be surprised later if a stock was bought or sold for one or more of the 3 Stocks Portfolios. If you're a subscriber and you're not receiving the daily newsletter, please report that problem to [email protected].

And that's it, if you have any further question about the use of the 3 SOF Premium service, please e-mail [email protected] with that question.

We hope we can all learn a lot and make profits along the way. Welcome to the 3 Stocks on Fire Premium Service !