FAQs

What is Wall Street Monkey?

Wall Street Monkey (WSM) is a trading system that shows you how to generate short term capital gains by buying and selling stocks on the three major U.S. stock exchanges. At the heart of WSM is Nina, an imaginary, computerized monkey who analyzes identifiable trends in trading stocks. She does an in depth statistical analysis on all of the stocks trading on the three major US stock exchanges looking for certain patterns. In particular - cyclical volatility.

What makes Wall Street Monkey different from other trading strategy web sites?

WSM is a complete system in that it gives you a specific and narrow strategy for trading stocks, but it also gives you a list of stocks that will work with that strategy and information on when to buy and sell the stocks. There are many good strategies that will generate capital gains through buying and selling stocks.  Such as, “buy low and sell high”. This is a good strategy, but the trick is how, exactly, to do that. WSM goes a step farther than giving you the strategy by then identifying certain stocks that are positioned to execute that strategy.

What is the WSM strategy?

WSM has four basic pillars for its total strategy:

1. DO worry about the short term.  How many times have you been told “Don’t worry about the short term -- It is the long term that counts”?  While it is true that the long term is most important, you can only have a good long term if you string together a bunch of good short terms. Can you think of a scenario where your short terms are good but your long terms are bad? Don’t worry. Neither could we. Can you think of a scenario where your short terms are all bad but your long term is good?  Don’t worry.  Neither could we.  So, do worry about the short term and start making your long term good right now.
2. Take small profits but take a whole bunch of them.  Don’t sit on the sidelines of profit taking and pass up smaller profits while you are waiting on “the big one”.  While you own a stock waiting for it to go up 20% to sell, it probably cycled up and down by 6% four different times.  So rather than wait on the one 20% gain, take a bunch of 5 or 6 percent gains. It is much easier and quicker, generally, to make four 5% gains than to make one 20% gain. Factor in compounding and it is even better. Remember, there is only one reason to buy a stock. That is to make money. You only make money when you sell (other than dividends). So sell a whole bunch.
3. Stick to the system. The analysis performed by Nina, our imaginary computerized monkey is based on a set of procedures and parameters that need to be adhered to. Such as, buy only the stocks Nina says buy and only sell when Nina says to sell. (It is always within the system to sell early if you are profitable.) When you deviate from the system, then you exit the closely evaluated set of parameters that drive the success of the system. You may exit success as well. For example, since Nina goes for the middle ground to buy and sell more often than the highs and lows, it is likely for a stock to go lower even after Nina says buy it. Nina does believe that you will be returned to profitability in a reasonable amount of time. You just have to be patient. If you buy the stock, it goes down, and then you sell it before Nina says sell, then you will miss out on the profit when the stock corrects back up into the monkey margin (price region where Nina thinks the stock should be trading). You will have taken a loss when a profit was yours had you stuck with the system.
4. Don’t invest money you can’t afford to lose. If you can’t afford to lose your money please do not use our system.  If you invest money you can’t afford to lose, you will worry a lot. You won’t sleep good at night, and you will engage in emotional investing. Emotional investing entices you to move away from the “system”.  All these things are bad.  Are we saying you will lose your money? No. Not if you stick to the system. But, you will occasionally take a loss. You may even take a couple of losses back to back. No matter how good the WSM system is, it is not perfect. Nina will occasionally pick a rotten banana. WSM wants your investing experience to be profitable, but also stress free and fun.

Does WSM help me manage my investment funds? Negative, tower. WSM does not address money management. WSM shows you how to make a profit, not what to do with it. WSM makes no recommendations on money management issues such as how to diversify, how many stocks to be invested in at any one time, or any other suggestions on how to use your money. That is strictly up to you.

Do I need a separate stock brokerage? Yes. WSM is not a trading platform. You must have your own brokerage service set up to do your trading.

Can I trade options using WSM? Yes and no. At this time, WSM does not address any option strategies. If, however, you are familiar with options trading and have your own favorite strategies, you can use WSM’s stock forecasts to execute your option strategies.  For example, if Nina shows you a stock that is below the monkey margin, she also shows you the range she believes the stock will rise back up to. Similarly, if a stock is above the top of the monkey margin, she is telling you this stock is likely to decline and shows her analysis of what that decline might be.

Will WSM offer other trading strategies besides buying and selling stocks in the future? Yes. Besides picking stocks, Nina is very adept at finding attractive covered calls and unreasonably profitable option spread strategies. Nina’s handlers, however,  are slower than Nina. So it will take a while for us to roll out these new features. They are something to look forward to in the future.

Does WSM evaluate the quality of a stock? No. Nina only performs statistical movement analysis.  She is an imaginary monkey and can’t read very well, so she knows nothing about P/E ratios, earnings forecasts, book value, current debt load, industry segment performance, management activity or headline news. Once you are interested in one of Nina’s picks, you should do some basic research on this stock before you buy it.

Will Nina conduct any type of fundamentals analysis in the future? Not likely. Nina is a specialized monkey and will probably stick to statistical analysis. Nina is open to learning new tricks, however, if the proper motivation comes along.

How do I subscribe to Wall Street Monkey? Press the subscribe button and follow instructions. You must sign in before you can see the subscribe button. You must register before you can get a username and password to sign in with. So…

1. Click register and enter your information as prompted.
2. Now you can log on using your username and password.
3. Any time you are logged on, you will see a subscribe button. Push it and enter required information.

At this time, WSM uses PayPal. So, you will need a PayPal account to subscribe.

How do I communicate with WSM to pass along ideas, questions, or concerns? In this day and age of technology, all of Nina’s managers have handheld smart phones hooked up to our email accounts. So, send an email to the link at the bottom of the page. The email will make its way through wires, routers, modems, switching stations, satellites, etc. and make a specified noise or vibrational pattern on our cell phones within seconds of your send action alerting us that there is a critical piece of information that needs to be addressed. We will then address it and reply in a similar fashion. This seems to be quite effective. If your question is a hard one, we may have to do some research before we give you an answer.