3 SOF Portfolio FAQ

[David Randolph]

1 - What is the 3 Stocks on Fire Portfolio?
It is a short term trading portfolio of US stocks.

2 - What is the initial trading capital?
$15,000.

3 - How many different stocks is the portfolio allowed to own at the same time?
Three stocks. This is the 3 Stocks on Fire Portfolio.

4 - Where do you keep track of the 3 Stocks Portfolio Performance and History?
On the 3 Stocks on Fire Portfolio page (inside the left menu), there you'll see our current open positions, closed trades and performance charts.

5 - From which exchanges will you pick stocks?
The portfolio accepts stocks from the NYSE, Nasdaq, AMEX and OTCBB.

6 - How much to invest in each stock?
We always invest a fixed portion of capital in each different holding: 33.33%.

7 - How do you select stocks?
We expect you to suggest stocks, make a quick analysis using the video format, and if approved immediately buy it for the 3 Stocks on Fire Portfolio.

8 - How do I suggest one stock?
You just need to reply on that session's thread with the stock symbol of your suggestion. If you can add some comments or your personal reasons for the suggestion, that's appreciated, but just the symbol works fine too.

9 - At what time can I suggest stocks?
Whenever the market is open. When the market is closed the 3 Stocks on Fire Portfolio Message Board is closed too.

10 - Which techniques do you use to sell stocks after they were bought?
We want this to be a competitive portfolio. Suggestions try to kick the current holdings out of the portfolio. If a new and better stock appears, for short term trading purposes, that stock will enter the portfolio and the weakest of the three (considering short term technical indicators) will be sold.

11 - Will you use technical or fundamental analysis?
We'll use both, but always with a short term perspective. For example, a news event can be seen as significant or irrelevant by fundamental analysis. A stock can also be bought or sold without any regard for the fundamentals.

12 - Can I suggest short picks as well as long picks?
Yes, the 3 Stocks on Fire Portfolio is a long/short short term trading portfolio.

13 - Should I suggest big or small cap companies?
You can suggest anything you want (provided it's not a PK), but we prefer companies with less than $500 M market cap

14 - Can I suggest low volume stocks?
Well, we don't want to waste time with stocks with less than $500,000 volume on that session, but we welcome anything greater than that

15 - Can I suggest stocks from any sector?
Yes, you can, but David doesn't like biotechnology, alternative energy or mining stocks with no operations. He welcomes everything else.

16 - Don't you think this is kind of a gamble?
Yes, we do. But we like to gamble sometimes.

17 - Wouldn't you rather use a longer term approach?
We already do that on our Main Portfolio, that portfolio represents the correct way to invest for long term enrichment.

18 - Is it possible that you pick stocks without any previous suggestion?
No, but that doesn't mean we won't make suggestions ourselves.

19 - Can I make a suggestion just because I would like a second opinion on a stock that I own (not really on fire)?
Yes, you can, we'll be glad to provide that second opinion.

20 - Why isn't your English as good as one would expect?
We're foreigners that invest in US stocks. We have a passion for stock trading, but we're not Americans.

21 - Why is this part of the site blue? And says Premium?
Because in fact this is part of our Premium Package, you are only seeing this because once in a while we open some of our premium content to let you know how we work. If you enjoy make a Free Trial and also get access to our Main Portfolio and make sure that you wont lose access to this portfolio.

22 - Your analysis ignored many important facts for my requested stock, why was that?
That will probably happen many times, since we just do a 3 minute look on the stock. If the motive for the stock being up doesn't pop in a 3 minutes review, the stock isn't interesting for short term trading purposes (although it can be great for long term investing)

23 - Do you send an e-mail Newsletter before buying or selling any stock?
No. You're not supposed to follow these trades. You're only supposed to assimilate the techniques used to pick fast moving stocks. We put the trades on the "Trades" thread and the "3 Stocks on Fire Portfolio" page on the minute right after executing the trade.

24 - But can I get email notifications with the new trades from the 3Stocks Portfolio ?
Yes you can, you should use a message board feature called 'Notify'.
Instructions: Go to the Trades Thread, click on the 'Notify' option (next to the Reply option). For better use, you should also click on your 'Profile', then click in 'Notifications and Email' and:
- Check the 'Receive forum announcements and important notifications by email' option
- Uncheck the 'Receive reply notification only for the first unread reply' option
- Check the 'When sending notification of a reply to a topic, send the post in the email' option
Click 'Save Settings'
NOTE: Make sure you check your Spam / Bulk / Junk email folder, if our emails are getting there, mark our email as not spam, and add our email address to your contact list.

25 - What if I have a question that wasn't answered by this FAQ?
Send a personal message to me (David Randolph) with your question and I'll reply via private message. If I think it is useful for the general public, I'll edit this FAQ and add your question and my reply.

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