Trading Alerts Summary

The editors of the OTC Journal have been involved with the small and microcap world for many years. Over the course of time we have all developed many friends and associates in this area of the market. We have an infinite supply of ideas to share, but very few of the companies we review spark our interest enough to issue a profile and then follow the company for a full year.

However, we are constantly presented with ideas that lead to a short term price surge in a stock. From the mail we receive we know that our members are interested in these types of ideas. Many investors have an extremely short time line.

Our mission at the OTC Journal is to find money making ideas. For long term investors we have our profiled companies, all of which we cover for at least one year. On the profiled companies we are looking for major home runs over the long term.

Trading Alerts will be published on small and microcap stocks. They could come out at any time. Whenever we publish a Trading Alert it will be on a stock which we feel will trade up over the next one to three days based on some coming event or current characteristic of the way the stock is trading.

There are over 4,000 small and micro cap stocks. On any day one of those stocks is bound to be breaking out. How do you find out which one it is? We will try to find it for you using our vast contacts and resources.

Here are some rules for our new trading alerts feature:

We will issue a Trading Alert when we feel a small or microcap stock is poised for a surge in both price and volume over the next one to three days, and we will give you the reason we believe it will surge.

We will provide a two or three paragraph overview of the company's business.

We will not provide any follow up coverage on the company unless there are substantive news releases to share.

If you cannot pick up the stock fairly close to the previous day's close caution should be used. Never purchase a stock if it gaps up significantly from the previous day's close.

Always set a stop loss on these situations in the event that we are wrong, and we will be wrong occassionally. Where you set the stop loss is your choice. Many investors like to use 6% or 10%. Determine the amount of capital you are prepared to risk on the trade and sell the stock if it drops to that level. Your risk tolerance is a personal decision, and it is different for every investor.

Don't be afraid to take profits. Short term tops are signalled when the stock continues to trade high volume with no further price appreciation. This can be a good time to lock in profits. Many investors like to sell part of their position when a stock surges, holding the rest in the event the stock goes higher. You can also raise your stop loss as the stock appreciates.

If you decide to hold the stock for the longer term you are on your own. We will not continue coverage or provide updates as we do with our profiled companies.