Accrued interest
Interest that has accumulated between the most recent payment and the sale of a bond or other fixed-income security. At the time of sale, the buyer pays the seller the bond's price plus accrued interest, calculated by multiplying the coupon rate by the number of days that have elapsed since the last payment.

Annual percentage yield
The rate of return on an investment for a one-year period.

All-or-none
A qualifier used to signify that no partial transaction is to be executed. The order will not be filled unless the full number of shares are available to be bought or sold at your requested price at the same time.

Automatic reinvestment
Mutual fund term used to describe a fund service giving shareholders the option to purchase additional shares using dividends and capital gain distributions.

Bid
Price a prospective buyer is ready to pay

Bulletin Board Stock
A security that is not listed and traded on an organized exchange

Buying Power
Amount of credit available to a client in a brokerage account for the purchase of additional securities and is determined by the dollar amount of securities that can be margined.

Capital Gain
Difference between an asset's adjusted purchase price and selling price when the difference is positive

Capital Loss
Difference between an asset's adjusted purchase price and selling price when the difference is negative

Cash dividend
A distribution of earnings to shareholders, prorated by class of security and paid in the form of cash.

Commission
Fee paid to a broker for executing a trade based on the number of shares traded or the dollar amount of the trade

Day Trade
Executing a buy order and a sell order on the same stock within the same day.

Distribution
In relation to an IRA, a withdrawal of assets from an IRA account

DJIA
An abbreviation for Dow Jones Industrial Average, a price-weighted average of 30 actively traded blue-chip stocks that typically trade on the New York Stock Exchange.

Dollar Cost Averaging
Method of accumulating assets by investing a fixed amount of dollars in securities at set intervals. Currently, Scottrade only offers this option for mutual funds

E-check
A funding option which involves an online check to get the funds into your account fast, easy and FREE of charge! E-Check Secure offers you the convenience of a check, without the delay of having to wait for the postal service to deliver your check to us. To use online account funding, you will need to complete an e-check authorization form and provide a voided check from the bank account you will be using to fund your account. The personal and banking information you provide will be stored securely and used to establish online funding for your Scottrade account.

Equity
Excess of securities over debit balance in a margin account, or the total market value of a cash account.

Ex-date
Also known as Ex-dividend Date. The date on which a stock trades without the dividend amount figured into the price. Ex-dividend is an interval between the announcement and the payment of the next dividend. An investor who buys shares during that interval is not entitled to the dividend. Typically, a stock's price moves up by the dollar amount of the dividend as the ex-dividend date approaches, then falls by the amount of the dividend after that date. A stock that has gone ex-dividend is marked with an X in the newspaper listings.

Foreign stock
Stock issued from a corporation organized under the laws of a foreign country

Form 5498
Reports contributions to IRA accounts and the fair market value of the account as of December 31st

Full transfer
Movement of an entire account, all securities and cash.

Gain/Loss
Is calculated as : Current Market Value - Total Cost

Hedge fund
An aggressively managed fund portfolio taking positions in both safe and speculative opportunities

Index
Statistical composite that measures changes in financial markets. Indicies measure the ups and downs of stock, bond and commodities markets, reflecting market prices and the number of shares outstanding for the companies in the index. Some well-known indicies are the Dow Jones Averages, NYSE composite and the S&P 500 index.

IRA
Personal, tax-deferred, retirement account that an employed person can set up with a deposit limited to $3,000.00 per year, through 2004. Contributions for 2005 to 2007 increase to $4,000.00 and contributions from 2008 and beyond will increase to $5,000.00 according to recent IRA legislation. Catch-up contributions are also available for IRA holders 50 and older. These individuals may contribute an additional $500.00 for years 2002 through 2005 and $1,000.00 for years 2006 and beyond.

Initial Public Offering
Corporation's first offering of stock to the public. IPO's are almost invariably an opportunity for the existing investors and participating venture capitalists to make big profits, since for the first time their shares will be given a market value reflecting expectations for the company's future growth.

Interest
Cost of using money, expressed as a rate per period of time, usually one year.

Interest Rate
Rate of interest charged for the use of money, usually expressed at an annual rate. The rate is derived by dividing the amount of interest by the amount of principal borrowed

Internet account
An account established where trades and account information is available online through a login process to a secure site. 75% of all trades must be completed online to be eligible for Internet commissions.

Joint account
An account established for two or three people, owned jointly. To open a Joint Account, download the paperwork.

Joint Tenants with Right of Survivorship
When two ore more people maintain a joint account with a brokerage firm or a bank, it is normally agreed that, upon the death of one account holder, ownership of the account assets passes to the remaining account holders. This transfer escapes probate, but estate taxes may be due, depending on the amount of assets transferred.

Limit Order
Order to buy or sell a stated amount of stock at a specified price or better.

Liquid Assets
Refers to cash or items easily convertible to cash. Some examples: money-market fund shares, US Treasury bills, bank deposits.

Liquidation
Converting investment securities to cash

Liquidity
The ability to have ready access to invested money. Mutual funds are liquid because their shares can be redeemed for current value on any business day.

Lot
Any group of goods or services making up a transaction. A Round Lot is a generally accepted unit of trading on a securities exchange. On the NYSE, a round lot is 100 shares of stock and $1000 or $5000 par value for bonds.

Maintenance Requirement
The minimum amount of equity that must be maintained in a margin account. As governed by the Federal Reserve's Regulation T, when a person buys on margin, key levels must be maintained throughout the life of the trade. The investor will receive a margin call if the value of securities falls below the maintenance requirement.

Margin Call
A request for additional funds resulting from a decline in the equity percentage or from purchases in the account. A margin call can be met by selling stock, depositing fully paid for stock into the account or by depositing funds.

Market Order
Order to buy or sell a security at the best available price. Most orders executed on the exchanges are market orders

Market Value
Is calculated as: Current Price * Quantity

NASD
Non-profit organization formed under the joint sponsorship of the Investment Banker's Conference and the SEC to comply with the Maloney Act. The NASD's basic purposes are to 1) standardize practices in the field, 2) establish high moral and ethical standards in securities trading, 3) provide a representative body to consult with the government and investors on matters of common interest, 4) establish and enforce fair and equitable rules of securities trading and 5) establish a disciplinary body capable of enforcing the above provisions.

Net Worth
Amount by which assets exceed liabilities.

NYSE
The oldest and largest stock exchange in the U.S. An unincorporated association governed by a board of directors, which is headed by a full-time chairman and is composed of 24 individuals representing the public and the exchange membership in about equal portion. Trading hours occur between 9:30 a.m. and 4:00 p.m. EST, Monday through Friday, excluding market holidays.

No-Load
Mutual fund offered by an open-end investment company that imposes no sales charge (load) on its shareholders.

Open Interest
Total number of contracts in a commodity or options market that are still open; that is, they have not been exercised, closed out or allowed to expire

Open Order
A buy, sell, buy to cover or sell short order that has been placed, but not executed

Over-the-counter (OTC)
Market in which securities transactions are conducted through a telephone and computer network connecting dealers in stocks and bonds, rather than on the floor of an exchange

Payable Date
Date on which a declared stock dividend or a bond interest payment is scheduled to be paid.

Penny Stock
Stock that typically sells for less than $1.00 per share. Penny stocks are issued by companies with a short or erratic history of revenues and earnings, and are therefore considered to be more volatile than those of large, well-established firms

Pink Sheet
An OTC Bulletin Board stock that is not quoted in the daily newspaper listings of Nasdaq Stock Market. "Pink Sheets" is a daily publication of the National Quotation Bureau that details the bid and ask prices of these stocks.

Principal
Basic amount invested, exclusive of earnings.

Public Offering Price
The price at which a mutual fund's shares can be purchased. The asked or offering price includes the current net asset value plus any sales charge.

Record Date
Date on which a shareholder must officially own shares in order to be entitled to a dividend

Reverse Stock Split
Procedure whereby a corporation reduces the number of shares outstanding. The total number of shares will have the same market value immediately after the reverse split as before it, but each share will be worth more

Roth IRA
IRA created by the Taxpayer Relief Act of 1997 permitting account holders to allow their capital to accumulate tax free under certain conditions. Participants do not get the deductions for contributions made, but earnings and principal can be withdrawn completely tax free after age 59 ½ as long as the assets have remained in the IRA for at least 5 years after making the first contribution. There are income and other limitations.

Secondary Market
Exchanges and over-the-counter markets where securities are bought and sold subsequent to original issuance, which took place in the primary market. Proceeds of secondary market sales accrue to the selling dealers and investors, not to the companies that originally issued the securities.

Selling Short
A customer sells short when he or she sells stock as an opening transaction instead of purchasing stock. The customer must meet certain margin requirements to sell short and the firm must be able to borrow the stock that the customer wants to sell short

Settlement Date
Date by which an executed order must be settled, either by a buyer paying for the securities with cash or by a seller delivering the securities and receiving the proceeds of the sale for them.

Share Class
A fund may offer different classes of shares such as A, B or C. Share classes represent ownership in the same mutual fund. The way the fund is paid for depends on the share class purchased. This allows the client the option to choose the sales charge that best suits his investment needs and objective

Short Position
Stock shares that an individual has sold short and has not covered as of a particular date. Sale of a stock not owned by the seller.

SEP IRA
Pension plan in which both the employee and employer contribute to an IRA.

Statement
A summary for customers of the transactions that occurred over the preceding month. The Scottrade brokerage statement shows all stock, bond, option, mutual fund or other investment products, interest and dividends received, margin debt outstanding, and other transactions, as well as a summary of the worth of the account at month end.

Stock Certificate
Evidence of ownership of a corporation showing the number of shares, name of issuer, amount of par or stated value represented or a declaration of no-par value, and rights of the shareholder. A preferred stock certificate will also list the issuer's responsibilities with respect to dividends and voting rights, if any.

Stop Limit Order
An order to buy or sell at a specified price or better (called the stop-limit price) but only after a given stop price has been reached or passed. For example, an order to buy 100 MSFT 55 Stop 56 Limit, means that if the market price reaches 55 (stop price) or better (in the case of a buy, it would be less than 55) the order is then triggered to execute the order as a limit order at 56 or a better (lower) price. Stop-limit orders avoid some of the risk a stop order has, but like all limit orders, carries the risk of missing the market all together, since the specified limit price or better may never occur.

Stop Order
An order to buy or sell at the market price once the security has traded at a specific price called the stop price. For example, a stop order to buy, always at a price below the current market price, is usually designed to protect a profit or to limit a loss on a security already purchased at a higher price. The risk of stop orders is that they may be triggered by temporary market movements or that they may be executed at prices several points higher or lower than the stop price because of market orders placed ahead of them.

Tax exempt
Free from tax liability.

Total Cost
Is calculated as: (Quantity * Purchase Price) + Commission

Trade Authorization
A form that allows someone other than the account holder the ability to execute buy and sell transactions on an account. Please note that a person granted trade authorization may not request checks nor do they have the ability to make deposits to the account. Also note that Scottrade does not support Power of Attorney.

Trade Date
Day on which a security or a commodity future trade actually takes place

Traditional IRA
Personal, tax-deferred retirement account that an employed person can set up. IRA contributions are deductible regardless of income if neither the taxpayer nor the taxpayer's spouse is covered by a qualified plan or trust. If the taxpayer is covered by a QRP, they may deduct contributions if MAGI is below $50,000 on a joint return or $30,000 on a single return.

Treasury Bills
Short-term securities with maturities of one year or less issued at a discount from face value.

Treasury Notes
Intermediate securities with maturities of 1 to 10 years. Denominations range from $1,000 to 1 million or more. The notes are sold by cash subscription, in exchange for outstanding or maturing government issues, or at auction.

Trust Account
An account in which a fiduciary relationship occurs where a person, called a trustee, holds title to an account for the benefit of another person, called a beneficiary. The agreement that establishes a trust, contains its provisions, and sets forth the powers of the trustee is called the trust indenture. The person creating the trust is the grantor or donor.

Unit Investment Trust (UIT)
Investment vehicle registered with the SEC under the Investment Company Act of 1940, that purchases a fixed portfolio of securities, such as corporate, municipal or government bonds, mortgage-backed securities, common stock or preferred stock. Units in the trust are sold to investors by brokers for a sales charge. The trust expires when bonds mature, or in the case of equity funds, at a specified future date. Unit holders receive an undivided interest in both the principal and the income portion of the portfolio in proportion to the amount of capital they invest

Yield Curve
Graph showing the term structure of interest rates by plotting the yields of all bonds of the same quality with maturities ranging from shortest to the longest available. The resulting curve shows if short-term interest rates are higher or lower than long-term rates.

Yield
Return on an investor's capital investment

Yield to Maturity
Concept used to determine the rate of return an investor will receive if a long-term, interest bearing investment is held to it's maturity date. It takes into account purchase price, redemption value, time to maturity, coupon yield, and the time between interest payments.

Zero Coupon CD
Certificate of Deposit sold at a discount to their face value and pay the entire face value at maturity

401k Account
Plan whereby employees may elect, as an alternative to receiving taxable cash in the form of compensation or a bonus, to contribute pretax dollars to a qualified tax-deferred retirement plan.

403B Account
A type of Individual Retirement Account covered in section 403(b) of the Internal Revenue Code that permits employees of qualifying nonprofit organizations to set aside tax-deferred funds

Please contact us if you have any questions about other
Financial terms and we will be glad to respond info@simplestocktrading.com

1. What type of Stock Trading Strategy do you employ at SimpleStockTrading.com?
We ONLY trade the SPY and QQQQ either Long or Short and usually only make 3-4 trades per month.

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2. What price are the stocks that buy with your Stock Trading System?
Whatever the going price is on the SPY and QQQQ.

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3. Do subscribers need any knowledge of the stock market or stock trading strategies?
No knowledge of the stock market whatsoever is needed. You only need a brokerage account with access to trading stocks, whether through a broker or online stock trading.   You will ONLY be stock trading the SPY or QQQQ.

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4. What will I be receiving with your Stock Trading System?
Our simple strategy has produced excellent short and long-term results.  We have rigid discipline with our stop loss and money management.  You receive (3) emails daily, at 10:00am, 1:00pm and 3:30pm but ONLY if we have a switch in our current OPEN position on the SPY or QQQQ.   We always hold a position in the SPY or QQQQ either LONG or SHORT.

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5. What do you tell us about the stock trades you are making?
We simply tell you that we are OPENING a LONG or SHORT position in the SPY or QQQQ.  We also tell you when we are CLOSING an OPEN position in the SPY or QQQQ.

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6. I don't understand buy stop orders, limit orders, and stop losses. Can you help?
All relevant stock trading terms are mentioned in our “Stock Terms” section located here http://www.simplestocktrading.com/stockterms.php

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7. How long does the average trade last with your Stock Trading System?
We usually execute about 3-4 trades per month so the average trade on the SPY or QQQQ may last 7-10 days, but could be shorter or longer depending upon the signal we receive from our proprietary indicators.

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8. Do you have stop losses in place with your Stock Trading Strategy?
We wait until our signal switches from LONG to SHORT or from SHORT to LONG.  We usually pick up trend changes accurately in the SPY and QQQQ and therefore any losses tend to be minimal while gains can often be exceptional.

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9. Do you short stocks with this Stock Trading System?
Yes we play the SPY and QQQQ both LONG and SHORT.

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10. Can I make trades in my IRA like your trades on the nightly emails?
You can make all LONG trades in your IRA account but you cannot SHORT stocks in an IRA account.

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11. What if I have another question that I do not see listed here?
Contact us at info@simplestocktrading.com.
We would be glad to answer any questions you have in a timely manner (usually within 24 hours).

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About SimpleStockTrading.com

Our Stock Trading Goal

Our stock trading goal is to make between 75-100% per year with as limited risk as possible with a SIMPLE trading strategy.

Over the last 4 years we have returned over 275% total to our investors. In 2005 we returned 79%.  We simply trade stock in the S&P 500 index (symbol SPY) and the Nasdaq 100 (QQQQ) and we trade them Long or Short.  Past performance is not a guarantee of future results but we have a PROVEN track record of success built over many years.

Our Fee

You may signup for one month for $49, three months for $135 (average $45 per month), six months for $250 (average $41.50 per month) or our best offer which is one full year for only $475 (average $39 per month). Signup now.

About Us

At SimpleStockTrading.com we try to make stock trading simple.   We focus on the S&P 500 stock trading index (symbol SPY) or Nasdaq 100 (QQQQ) and we use our proprietary market timing software to place stock trades Long or Short on the SPY or QQQQ.

We do ALL of our stock trading in the SPY or QQQQ.  We focus on keeping it SIMPLE.   We only have a few trades per month.

You will receive an email at 10:00am, 1:00pm or 3:30pm but ONLY IF we have a signal change from our current position.
We normally only have 3-4 trades per month and sometimes we will go weeks without a change.

We hope you Signup Now and see how we operate. Join us for a month and stay for a lifetime!