Tim Cho - Winning System for Trading High-Performance Stocks

7/25/2019 Tim Cho - Winning System for Trading High-Performance Stocks

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Developing a Winning System for

Trading High-Performance Stocks

TIM CHO

TCI CORPORATION

www.tcicorp.net 800-992-4625


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Trading plan

1. Select high performing stocks

2. When to buy and when to sell

3. Money management

4. Risk management


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1. EPS rank 90 or higher

2. Relative strength (RS) 90 higher

3. SMR rank A

4. Accumulation/Distribution (ACC/DIST) AOr if accumulation/distribution (ACC/DIST) is B,

timeliness must be an A ranking to select thestock

5. Timeliness A

Or if timeliness is B, accumulation/distribution(ACC/DIST) must be an A ranking to select the

stock

6. Group relative strength 85 or higher

7. Number of outstanding shares 200 million orless (the lower the better)

8. Float 175 million or less (the lower the better)

9. Growth rate (annual compound) 25% or higher

10. Consecutive yearly earnings increase (min. 2years)

11. Strong earnings estimate (next two years) 20%or higher if earnings estimate only available for

one year; increase consecutive yearly earningsincrease to (min. 3 years)

12. Earnings increase last 2 quarters 25% or higher

13. Last 4 quarterly sales increase 20% or more

14. No debt or very low debt (less than 30%)

15. Top 3 stocks in the same industry possess highRS rankings 90 or higher

16. Funds and banks own total of 5% or more

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Stock selection CriteriaStock selection Criteria Long PositionLong Position


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#1. EPS rank 90 or higher

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#2. Relative strength (RS) 90 or higher

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#3. SMR rank A

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#4. Accumulation/Distribution (ACC/DIST) AOr if accumulation/distribution (ACC/DIST) is B,

timeliness must be an A ranking to select the stock

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#5. Timeliness A

Or if timeliness is B, accumulation/distribution(ACC/DIST) must be an A ranking to select the stock



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#6. Group relative strength 85 or higher



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#7. Number of outstanding shares 200 million

or less (the lower the better)



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#8. Float 175 million or less

(the lower the better)



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#9. Growth rate

(annual compounded) 25% or higher



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#10. Earnings increased from previous year



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#11. Strong earning estimate(next two years) 20% or higher

if earnings estimate only available for one year; increase

consecutive yearly earnings to minimum 3 years



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#12. Earnings

increase last 2

quarters 25% or

higher



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#13. Last 4 quarterlysales increase 20% or

more



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#15. Top 3 stocks in the same industry possess

high RS rankings 90 or higher



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#16. Funds and banks own total of 5% or more



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Stock selection CriteriaStock selection Criteria Short PositionShort Position

1) EPS rank 35 or lower

2) Relative strength (RS) 35 or lower

3) SMR rank c, d or e

4) Accumulation/distribution (Acc/Dist) D or E

5) Timeliness D or E

6) Group relative strength 45 or lower

7) Growth rate (annual compounded) 10% or lower

8) Earnings estimate (next two years) 5% or lower

9) Earnings increase last 2 quarters 5% or lower10) Last 4 quarterly sales increase 5% or lower


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Stock selection for trading both sides of

the market (long and short)The system is designed to trade any stock that

moves in big trading ranges, up and down. The more

volatile the stock, the better the system will perform.

Look through Dailygraphs; use any stock that has abig trading range moving up and down. Input the

stock into the TCI SOFTWARE and look at the

historical spreadsheet on the performance of the

stock. If the performance looks good and you feel thestock will continue to be volatile, you may want to

select the stock to trade.


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The Most Important Element

to Trading Success:

Knowing When to buy

and when to sell

System Trading


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Stocks, S&P futures and NASDAQ futures markets historical time cycle correlation

Market Bias (Use the previous days cash market data of S&P 500, NASDAQ and DOW JONES) Use

the lowest and the highest price between 14:00 to the end of 14:29 time period as the goalpost, look for

the first break out within the next 30 minute (between 14:30 to 14:59)

Market condition Use %D on the daily chart 0 to 40 over sold, 41 to 60 neutral and 61 to 100 over

bought.

Market direction Use %D on the daily chart and the bend direction is the market direction.

Time frames when major institution and big market player come into the market (stocks, S&P futures

and NASDAQ futures market) between 14:30 to 15:00, (S&P futures and NASDAQ futures market) at15:40 and again at 15:45 to 16:15

Most major economic news announcements are at 8:30AM and 10:00AM EST.

Best intraday trading (long and short position) move: EST 10:00 to 11:00 and 14:30 to 16:00

Best swing trading (long position) performing days of the week Monday, Wednesday and Friday

Best swing trading (long position) performing days of the month First 3 days and last 4 days.

Best swing trading (long position) performing months of the year November, December and January

Best swing trading (short position) performing months of the year February, June, September and

October


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Money Management

1. The total trading capital for day trading should be no more than

5% of your trading assets.

2. The total trading capital for swing trading should be no morethan 25% of your trading assets.

3. The total trading capital for long term trading should be no more

than 50% of your trading assets.

4. The increase of trading capital goalpost is based on 50%

reinvestment of your gross profits.

5. The key to success is discipline; keep your trading capital small

until you develop your skill to move up to the next level. Youhave to earn your way up. Our goal is to use the powerful

compounding trading mathematics to build your account size.

Everyone has a different timetable to develop the trading skills.

To be successful in trading you need to have a plan to defeatthe market. The system is a part of the plan, but before you

trade you have to know your limitations. Everyone has a

different timetable to develop the skills to control the emotions oftrading.


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What are the most common mistakes most traders make?

% Loss of Trading Capital % Gain Required to Be Even

5%

10 %

15 %

20 %25 %

30 %

35 %

40 %

45 %

50 %

55 %

60 %

5.3 %

11.1 %

17.6%

25 %33.3 %

42.9 %

53.8 %

66.7 %

81.8 %

100 %

122 %

150 %


Failure to cut loses


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What Are The Most Common Mistakes Most Traders Make?

A) Trading before acquire the necessary knowledge and education

B) Trading more money than they should Lack of discipline and patience

C) Lack of money management and risk management skills

D) Increase position size after losses to try and make it back

E) Trading with negative emotions

F) Basing trading success on winning trades vs. losing trades.

G) Trading without a proven trading plan, a proven system or a provenmethodology.

H) Taking small profits and letting losses run: the primary rule to successful

trading should be cutting your losses short and let your profits run.


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What is a successful traders psychological make up?

A) Commitment

B) High level of discipline

C) High level of self-control

D) Financially stable

E) Know your limitations

F) Self-motivated, driven and have a burning desire to

succeed G) Patience

H) Meticulous, detail oriented

I) Positive thinker

J) Decision maker - Have the aptitude and the ability to make

sound decisions K) Leader

L) Persistence


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What characteristics are needed to be a successful trader?

1) High level of discipline - follow the trading rules:

a. Cut losses.b. Let profits run.

c. Keep trading capital small.d. Follow all the system rules.

2) High level of self-control

3) Financially stable

4) Know your limitations

5) Self-motivated, driven and have a burning desire to succeedS

6) Controlled emotionsC

7) Patience

8) Meticulous, detail oriented

9) Positive thinker

10) Decision maker - Have the aptitude and the ability to make sounddecisions

11) Leader

12) Commitment

13) Persistence


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A) Lack of discipline Guarantee you will fail

B) Lack of self control

C) Lack of commitment

D) Afraid to make decisions

E) Under capitalized

F) Out of control type, or overly aggressive individualG) Highly and easily stressed individual

H) Negative thinker - negative outlook on life and always expecting the

worst

I) Likes to blame others when things go wrong

J) DisorganizedK) Impatience

L) Crowd follower - this is a sure way to lose money

M) Compulsive gambler

What individual characteristics are not suited for trading?


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TCI CORPORATION

www.tcicorp.net800-992-4625

Documents

Tim Cho - Winning System for Trading High-Performance Stocks