Our approach to profiting in the stock market is a simple, but powerful strategy. We buy stocks which demonstrate the potential for explosive gains, while maintaining a highly disciplined exit strategy to manage risk.

You see, while everyone is always focused on the goal of how much they can make buying or shorting a stock, they forget to concern themselves with how much they risk losing. The secret to creating great wealth in the stock market, isn't big gains; it's small losses.

By focusing on your potential risk and identifying your exit plan should your trade go against you, it is easy to keep emotions out of the game allowing you to think clearly and stick to your trading plan.

By itself, that strategy is not enough to be successful. You also need to have a proven and consistent strategy that will allow you to find winning stocks in any market environment. At Hot Stix, we use a visual form of Technical Analysis that is both simple and effective.

Technical Analysis allows us to find setups by identifying certain chart patterns. Some people think Technical Analysis needs to be complex and mathematical. We think it's better to keep it simple. Our practice was discovered more than 50 years ago, and has proven itself to work in every market environment.

This is an actual buy recommendation we made on the stock Amazon (AMZN) in April of 2007. First we identify the setup and alert our members ahead of time to a potential trade. We identified a pattern on the chart and told our members to BUY this stock when it crossed over the upper blue line. Once the trade is activated, we post follow up commentary as the trade unfolds. Here, the buy is triggered and we follow along with periodic updates so you are never left in the dark. When the stock reaches our target price, we close out the trade. We follow all of our recommendations from start to finish, even the ones that don't work out as perfect as this one did. Unlike most services, ALL of our past trade recommendations are fully available for your review. In a matter of a weeks, we made a profit of 20% on that one trade. Obviously, not all of our trades go exactly as planned. In fact, a good majority of our trades do not meet our goals. However, we employ a strategy that keeps our losses small. Typically, if the trade goes south, we will exit for a small loss of less than 5%.

This strategy of keeping losses small is extremely effective.

If you win only 1 out of 3 times, with your losers losing 5% and your winners gaining 25%, you can make extremely large profits. That's right -- just like in baseball, you don't need a high batting average to make the all star team.

Let's do the math assuming there are only 1 out of 3 winners. Say you make 9 trades of $10,000 each in one month. That means you'll lose money on 6 and make money on only 3. The 6 losers will cost you $3,000 (6 x 5% loss on each of the $10,000 trades) and the 3 winners will net you $7,500 (3 x 25% gain on each of the $10,000 trades) for a total profit of $4,500. Keep that up consistently, and pretty soon you'll be owning your own baseball team.

Our total gain of all trades since inception over six years ago is 802.61%. (Data is up to April 2007 and does not include commission costs. Past performance is no guarantee of future results.) That didn't come from a few big home runs, but from many, many singles and doubles and a disciplined exit strategy that also kept us from any major catastrophes.

The benefits to practicing technical analysis go beyond merely providing an opportunity for extraordinary profits and gains in wealth.

• Ability to profit in both a bull and a bear market.
• Opportunity for extraordinary profits and gains in wealth.
• Minimization of risk. Never again will you ride a stock down for big losses.
• The clarity and comfort that come from following a successfully tested and logical strategy.

Advertisement:   real testimonials from real members: "I'm a short-term momentum trader who is a recent subscriber to your website. I take positions on the small risk, large potential reward recommendations, which I recently did on NVDA. In 22 days, I netted $8,468.63 by shorting NVDA, enough to pay for more than 24 YEARS of subscriptions to your site !! Can't thank you enough. I demand that you all keep up the good work!" Mike C. in Toronto, Canada. "I have been a member for about five months, and just wanted to tell you how much I have enjoyed the service. I have been doing this long enough to know that there is no get rich scheme, and that is not what I am looking for. Rather, I would be happy if I could consistently make a little money. That is something that I have been able to do since joining Hot Stix. Trading still has it's daily struggles, I still find it tempting to utilize a mental stop that almost always leads to a larger loss. But for the most part, I have had the discipline to exercise good money management skills. Thanks again for the great setups, and I look forward to continued trading with Hot Stix." Gary in Virginia. "I subscribed to your service about a month ago, and boy I am impressed. I started investing about 2.5 years ago. I unfortunately bought into the buy and hold philosophy. I lost close to 50% of my portfolio. Within in a months time I made 500 dollars based on your setups. I am now big believer in technical analysis, and I learned that it is okay to sell your stocks. These analyst and so called financial experts can learn a ton from you guys. I know you guys aren't right all of the time, but your strategy of risk management makes losses small. Why don't the guys on MSNBC use your philosophy? I never hear these guys tell you to short a certain stock. They always tell you to buy a stock, but they never give you any entrance or exit points. I could have been an analyst, make a hundred grand a year, tell people to buy stocks that are going south and have no accountability, boy what an easy job." George Z. in Arizona.