How is ZenTrades different from other stock recommendation services?
We have subscribed to the majority of our competitors for research purposes.  We had problems with most of them.  In some cases, actual entry prices were not quoted by the service – only the opening price.  Other services would quote the highest point that a recommended stock reached and base the return percentage on it.  Still others required management of positions intraday, while bombarding us with 3-4 selections per day.  Several services used ‘fuzzy math’ to determine the annual percent return.  We are happy to report we do none of these things – and still deliver incredible results.

Is ZenTrades compensated in any way for the companies it recommends?
Absolutely not.

Do any of ZenTrades’ owners or employees invest in the recommendations prior to publishing on the web site?
No.  We enter into the positions on the same day as subscribers, and post our actual entry prices on our web site.

What is the difference between the Hot Stock Portfolio and the MTP Portfolio?
The Hot Stock Portfolio is suited for more conservative investors. Precise limit orders and protective stop orders are communicated to subscribers. The Hot Stock Portfolio’s recommendations look to capture a 10% return within a 1-3 week period, while keeping losses to 5% or less.  The MTP is ideal for more aggressive investors – protective stop loss orders are not used, as these plays are volatile. The MTP targets annual returns of 100%+.  Read more about the two portfolios.

How are recommendations communicated to subscribers?
If ZenTrades plans to enter into a Hot Stock play, an email is sent to subscribers by 9 p.m. ET the NIGHT BEFORE the position is to be opened.  Similarly, if we plan to close out existing long or short MTP positions, an email is sent at least one day prior to closing out our plays.

Do I need to monitor my positions or be aware of email alerts intraday?
Absolutely not. Orders are placed after market close, and no intraday maintenance is required.

What online brokerages are recommended by ZenTrades?
We strongly recommend InteractiveBrokers.  Their commissions are the lowest in the business – round trip fees for a 100 share order - $2.00.  Scottrade or OptionsXpress are additional alternatives.  ZenTrades does not receive any form of compensation from any broker.

Can ZenTrades manage and trade my account for me?
No. We are not registered investment advisors and cannot manage your funds. We do plan to offer Auto-trade services in the near future, where our recommendations can be automatically communicated to an online brokerage for execution. 

Can ZenTrades provide  individual investment advice for recommended plays?
No. The information posted on our site is the extent of the information we are able to provide.  You must do your own due diligence to know if the plays are appropriate for you.

How much does a subscription to ZenTrades cost?
Please see our Subscriptions page.

How do you select the stocks that you recommend?
We manage our two portfolios differently. The MTP Portfolio is primarily a mechanical system. It takes into account the overall market trend – using the ZSI (Zen Sentiment Indicator). Based on the prevailing trend, we use proprietary market scans to bring forward those stocks which are most likely to advance.  We have invested countless hours backtesting, and forward testing our strategies in varying market climates.  Our Hot Stock Portfolio looks for 3 specific trade setups in sectors that are exhibiting relative strength.  We favor momentum-based indicators and certain moving averages. Specific rationale for entering each play are provided to subscribers via email.

What’s the ZSI?
The ZSI (Zen Sentiment Indicator) is our proprietary indicator which provides guidance for our MTP Portfolio. Several market characteristics are taken into account (major indicies’ price action, volume, and relative strength). The ZSI ranges from +50 (Extreme Bullish) to -50 (Extreme Bearish).

What is ZenTrades' Approach to losses?
We look at losses as a cost of sales. We know we'll incur losses on occasion, but as long as our average gain is 2x our average loss - we win, even with a 50% win rate.

Day-to-day monitoring of a trend-following system can lead to poor decision making. We measure our performance on an annual basis.

Nothing moves up in a straight line. We started our +40% period with a -5% loss.

We recognize that a loss right out of the gate is painful. We don't like to see it. But we've done this long enough to realize that iron-clad discipline, patience and confidence in a mechanical system are requirements for positive results. Based on exhaustive testing, we are confident in our system's ability to produce annual returns of 100% or more.