Note: Before you delve into the following, let me remind you that this section is for investors who want to "understand" what MIPS is doing to determine its up, down, and sideways signals, i.e., what MIPS does to time the stock market.
For the rest, all you need to do to profit from MIPS stock market timing systems is to: (a) watch for emails from MIPS that "Signal" you to buy/sell/short ("Signal Date") ; (b) execute your order on the next day's opening ("Trade Date"); and (c) hold your resulting position until you hear from MIPS again.
From the stock market standpoint, "investors" who use a buy-and-hold strategy (which includes 90% of the "little guys") are making money when the market is going up and losing most of their gains back when it is going down. In our stock market vernacular, a "little guy" is an investor with less than 10 million to invest, whereas a "fat cat" has over 20 billion to invest. Worse yet, the large financial institutional investors and the "fat cat" stock market traders know when the change from up-to-down and down-to-up in the market is going to happen, because they basically "cause" these changes. (Don't forget - High Volume Orders Move Markets - HiVOMM).
In stock trading system basics, the investor should know that stock market cycles can be determined. In self-defense, MIPS stock market analysis was designed to arm the individual investor with an unbelievably accurate indicator of when the stock market is changing direction (from up-to-down or down-to-up) in order to beat the buy-and-hold strategy of losing back gains.MIPS stock market timing signals are the backbone of our stock trading basics.
At MIPS, we adhere to the investment rule called the "70-20-10 Rule". This rule says that 70% of an investor's probability of making money depends upon whether or not the investor is in long positions in up markets (and short or out in down markets); 20% depends upon the market segment that the investor owns at the time; and only 10% depends on the individual equities that the investor trades. A time proven rule is that a below average stock in a really good sector is better than a really good stock in a below average sector. Click here for more on 70-20-10
The primary objective of MIPS stock market timing system is to solve the 70% of the investment probability that helps the investor decide whether to be long/short/out, i.e., the stock signals basics. It is up to our members to decide which equities to trade. We have provided a short list under the "Services" tab, and most investors should stick to a few broad market ETFs like those provided herein. However, if investors want to get more sophisticated than this, they might want to put together their own "search criteria" and use a commercially available stock screener on websites from companies like Morningstar, Market Watch, The Wall Street Journal, Barron's, etc., to help them pick stocks and/or ETFs to trade (not recommended for novices).
How to Use MIPS
To Use MIPS Timing System Members simply: (a) receive emailed "Signal" changes from MIPS, (b) place your trades according to your Trading Profile, and (c) hold these positions until further notice from MIPS.
Most individual investors are taught to simply buy and hold, even in down markets. They are also told that (a) no one can time the market and (b) they should never consider short trades. And somehow, the SEC made it illegal for "retail" fund managers to execute short orders in their portfolios. But, everyone must have forgotten to tell the hedge fund managers this, as they have been making billions of dollars for the last 35 years.
MIPS Timing Systems, LLC, was formed to provide stock market timing signals for individual investors to help them make money in both bull markets and bear markets like the high-profile professional money managers do (that is, like hedge fund managers that can trade long and short as they see fit).
The MIPS Timing Systems models analyze the stock market and provide information to our members when the models issue buy, short, and/or cash "signals". The MIPS trading system uses the S&P 500 Exchange Traded Fund (ETF), the SPY Index Fund, to represent the market and uses SPY in one of its index trading strategies. MIPS is not for high frequency online trading or for day traders.
Most of the information regarding the stock market direction provided herein is derived from quantitative models and algorithms owned and developed by MIPS Timing Systems, LLC. These are made up of numerous technical indicators, some of which are published and some of which were developed in-house. These technical indicators are looking for new stock market trends and the exact time that the market changes its trend line from up-to-down or vice versa (i.e., an "inflection point" in the stock market trend line). This provides our members with new tools for timing the stock market and to better manage their stock market investments.