Resistance & Support Levels: The levels above are support and resistance levels for the stocks in the newsletter. Picture them as floors, as stock moves up breakout levels our, R3, to R4, to R5. If stock is trending down, support levels are S3, this is the area to short below, then stock can breakdown to S4 and extreme selloff S5. These levels in the newsletter remain in effect for entire day. If volume is strong on the day if stock breaks to R4 level, over 80% chance that it will trend up to R5 level later in day if volume strong.  S5 Level is the Potential Low of the day. R5 Level is Potential High of the Day.

Trade Setups: The alerts are setup for the stocks to breakout above the R3 Level we like to call it. Its a resistance levels, which means the stock more than likely has either broken out above yesterdays afternoon high, and or the previous days highs.  The breakouts are good for the entire day. As often a stock will get to the breakout level in am session and then pull back. So the stock may not breakout until the afternoon like the recent setup above on SPWR. Were it broke out the last 2 hrs and went right to the R5 level high of the day. Once a stock breaks out first target of profit area is the R4 level, which is the first level of resistance. On the shorts the S3 area is support area to enter the short on a stock. Usually this level the stock may be making a new 2 day low, or lost all support from the previous day. Support on way down is S4 first area to lock in some gains, and then final target S5.  As the stocks reverse of the lows you may see them bounce of the S3 to S5 Levels and move back up, after sell off the levels now become support and often stocks reverse from there.

You will notice on stocks prices over $60 a share the breakout levels increase as the stock price increases. Like AMZN breakout from R3 to R5 may only have the potential of moving +.60 to +1.50 move. Now stocks over $100 a share like RIMM and AAPL the potential increases to +2.00 to +7.00 a move.  No need to trade all the newsletter alerts just focus on the stocks you are familiar with, or the setup that plays to your trading style. So if you dont trade AAPL no need to watch it, if you only trade RIMM and AMZN focus on those.

• #1 Goal is to Protect Your Capital, without it, your cant trade.
• Always use a stop loss and honor it.
• Determine stop loss before entering trade.
• Don't overtrade. 4-10 trades a day are enough.
• Think Risk-Reward before entering a trade. Were can the trade go.
• Trade with the amount of shares you are comfortable with.
• If you never trade a particular stock before, watch it to see how it trades, then trade it with smaller shares.
• Small profits add up quickly.
• Trade stocks that you are familiar with
• As some stock move quicker than others AAPL quick, AMAT slow
• Take profits and scale out of trades.
• Don't trade low volume stocks, more risk.
• If the trade is not working exit. Find another one. 
• Trading the first 10 minutes of the open is the riskiest.
• Don't let a winning trade turn into a losing one. Tape that to your monitor !
• Volume: Stocks don't move unless there's volume. So on breakout plays, look for increasing volume
• Previous days volume. Look to see if stock volume has increased from previous days
• Look for the volume to increase as the stock trades higher, selloff it will increase to downside.
• STOPS: We traded 500 shares on our alerts and use a .30 cent stop.
• Stocks priced over 100 we use a .40 cent stop.