Term
or Expression |
Definition |
Additonal
Resource |
|
1989 |
The
year to which we backtested our Model. For earlier years not all data we
require to run our Model were available. |
|
2001 |
The
year in which the TimingCube
signal went live (June 18, 2001), and when subscriptions to the service
were first offered on-line (September 2001). |
|
401
(k) |
A
qualified retirement plans established by the employer to provide individual
taxpayers a tax-advantaged way to save and invest for the future. Contributions
to 401(k) plans can be tax-deductible and/or tax-deferred depending on the
taxpayer's circumstances (income, tax status, etc.) and the employer can
elect to make matching contributions. The long term Trend Timing approach
to investing is well suited for qualified retirement accounts. |
December
5, 2003 TTS |
4
quadrants of Trend Timing |
See
Quadrants. |
|
|
|
Accumulation |
A
technical analysis indicator of positive momentum. An accumulation occurs
when the price of a security or index increases on higher volume than on
the previous trading day. |
February
13, 2004 TTS |
All-weather
investing |
An
investment system designed to protect the investor's assets, or even benefit,
during major corrections and bear markets. Trend Timing is such an investment
system. |
|
Amex |
American
Stock Exchange. |
|
Annualized
return |
A measure
of the return on an investment over a period of time. It is the one annual
return number (expressed in %) which, if used as the return each year during
the time period, would have resulted in the total cumulative return over
that period. Annualized return is identical to the Compound Annual Growth
Rate. |
Also
see Compound Annual Growth Rate |
Asset |
Something
of value owned by an individual or a company. |
|
Asset
allocation |
The percentage
split between diverse asset classes. |
|
Asset
diversification |
The action
of distributing one's financial assets amongst diverse asset classes to
reduce risk by limiting exposure to any one asset class. |
January
23, 2004 TTS |
|
|
Backtesting |
A method
of testing for hypothetical results over past history. Our Model has been
backtested to the beginning of 1989. All results since June 18, 2001 are
live. |
Results
page |
Bear
market |
A prolonged
period of time during which the stock market is in a down trend. We define
bear markets as a decline of 20% or more from a recent top. Another bear
market indicator we use is the 10-day and 200-day EMA cross-over. |
October
31, 2003 TTS |
Broad
market |
The stock
market at large as opposed to a narrow market segment or sector. |
|
Bubble |
A period
of extreme overvaluation of a particular asset class. History has seen numerous
bubbles such as tulip bubbles, real state bubbles, and of course stock market
bubbles. Bubbles are inevitably followed by a crash which ultimately brings
valuations back to historical norms. |
October
24, 2003 TTS |
Bull
market |
A prolonged
period of time during which the stock market is in an up trend. A bull market
indicator we frequently use is the 10-day and 200-day EMA cross-over. |
October
31, 2003 TTS |
Buy
and Hold |
An investment
philosophy consisting of buying equities and holding on to them for the
long term. Based on the premise that in the long term the stock market always
goes up. Trend Timers are fundamentally opposed to buy and hold because
of the large losses experienced during severe corrections and bear markets. |
October
24, 2003 TTS |
Buy
and Hold investing |
See Buy
and Hold. |
|
Buy
signal |
The actionable
indication that our Model has detected a change in the broad market trend
to the upside, signifying it is time to go long, i.e. buy the market. |
Our
Service page |
|
|
CAC
40 |
A stock
market index representing the French stock market. Its components are 40
of the largest companies on the Paris exchange. |
October
24, 2003 TTS |
CAGR |
See Compound
Annual Growth Rate. |
|
Cancel |
The action
of discontinuing your subscription to the TimingCube
service.
All it takes to cancel is to send an e-mail request to that effect, with
your name and User ID, to support@timingcube.com. |
|
Cancellation |
See Cancel. |
|
Cash
signal |
A signal
designed to protect our investments when the market moves against our signal.
It is defined as a 9% move against our signal from the point of entry. After
an advance of 7% or more from entry, the Cash
signal acts as a 15% trailing stop. |
November
14, 2003 FAQ |
CEF |
See Closed-End
Fund. |
|
Close |
Short
for closing price. The last value a security or an index reaches when the
corresponding stock exchange closes for trading. |
|
Closed-End
Fund |
A special
type of Exchange Traded Fund (ETF) which has a fixed number of shares that
causes their price to be influenced by the demand for the fund itself, and
can therefore deviate substantially from the price of the underlying assets.
These funds are not applicable to Trend Timing. Acronym: CEF. |
|
Compound
Annual Growth Rate |
A measure
of the return on an investment over a period of time, usually more than
one year. It is the one annual return number (expressed in %) which, if
used as the return each year during the time period, would have resulted
in the total cumulative return over that period. Acronym: CAGR. |
Also
see Annualized return |
Compounding |
The exponential
growth effect of an investment held over time with reinvested gains and
interest. Frequently defined as the ability to generate returns on both
the principal and on the accrued returns. Compounding is a cornerstone of
the long term Trend Timing investment system. |
December
5, 2003 TTS |
Correlation |
A connection
between two or more items (stocks, market indexes) in which a mutual influence
causes them to move together. |
October 17, 2003 TTS January
16, 2004 TTS |
Cumulative
return |
The total
return of an investment over a period of time, with gains, distributions
and dividends reinvested. It is calculated by compounding the gains from
each successive trade during the entire time period. |
|
Current
signal |
The present
Buy, Cash,
or Sell direction as indicated
by our Model. |
|
|
|
Distribution |
A technical
analysis indicator of negative momentum. A distribution occurs when the
price of a security or index declines on higher volume than on the previous
trading day. |
February
13, 2004 TTS |
Diversification |
The action
of distributing financial assets between different classes of assets, strategies,
sectors, and/or securities to reduce risk by limiting exposure to any one
of them. |
January
23, 2004 TTS |
Dollar
cost averaging |
A technique
consisting of buying a fixed dollar amount of a security over at equal time
intervals to reduce the risk when entering a new position. The premise is
that the fixed dollar amount will buy more shares when the price is lower
and fewer when the price is higher. |
March
5, 2004 TTS |
Double |
The daily
objective of a bull mutual fund that seeks to achieve 200% of the daily
performance of the tracked index. Buying such a fund is equivalent to being
long (buying) the index on full margin. On a day the index moves up 1%,
such a fund will seek to increase by 2%. On a day the index moves down 1%,
such a fund will seek to decrease by 2% (all before fees and expenses). |
|
Double
inverse |
The daily
objective of a bear mutual fund that seeks the daily performance of increasing
in value twice as much as the tracked index declines, and decreasing in
value twice as much as the index rises. Buying such a fund is equivalent
to being short on full margin (selling short on margin) the index. On a
day the index moves up 1%, such a fund should decrease by 2%. On a day the
index moves down 1%, such a fund should increase by 2% (all before fees
and expenses). |
|
|
|
E-mail
notification |
There
are two types of e-mail notification messages we send to both the primary
and alternate (if any) e-mail addresses of all active subscribers:
- The new signal
notification (Buy,
Cash, or Sell)
sent when our Model triggers a new signal
- The Weekly Update
notification sent every Friday evening after the new Weekly Update
has been posted. This type of message is optional and can be turned-off
in the "My Profile" page
|
January
2, 2004 |
Emotion |
The emotional
side of investing is widely recognized as a source of poor investor performance.
More often than not, an investor that follows his/her emotions will take
counterproductive actions such as buying at a top or selling at a bottom.
Trend Timing places a high priority on managing the investor's emotions. |
|
EPS |
See Earnings
Per Share. |
|
Earnings
Per Share |
A measure
of a company's profitability calculated as income divided by the number
of outstanding shares of stock. Acronym EPS. |
|
Equity |
The ownership
interest in stocks or any security. |
|
ETF |
See Exchange
Traded Fund. |
|
Exchange
Traded Fund |
A security
that is listed on a stock exchange, trades intra-day like any stock, and
whose price fluctuates during the day as a result of offer and demand for
the underlying securities. Exchange Traded Funds are one of the key investment
vehicles used by Trend Timers. Acronym: ETF. |
|
Exponential
Moving Average |
A technical
analysis indicator which averages data such as price over a certain time
period. By giving more weight to recent data elements the exponential moving
average reduces the lag exhibited by simple moving averages. Acronym: EMA. |
October
31, 2003 TTS also
see Moving Average |
|
|
FAQ |
Frequently
Asked Question. |
FAQ
page |
FAQ
of the Week |
The section
of our Friday Weekly Update providing the answer to a frequently asked question. |
|
FED |
See Federal
Reserve. |
|
FED
call |
See Margin
call. |
|
Federal
Reserve |
The central
bank of the United States established to provide the nation with a safer,
more flexible, and more stable monetary and financial system. Since the
Federal Reserve's duties include setting and conducting the nation's monetary
policy, it frequently has an impact on interest rates and in turn on the
stock market. Acronym: FED. |
|
Forecast |
See Prediction. |
|
FTSE
100 |
A stock
market index comprised of the 100 largest companies on the London Stock
Exchange (UK). |
October
17, 2003 TTS
Results page |
Fundamental
analysis |
A method
of evaluating securities and/or markets based solely on company fundamentals
and/or economic indicators. |
October
10, 2003 TTS |
|
|
Hang
Seng |
A stock
market index comprised of about 30 of the largest companies on the Hong
Kong Stock Exchange (China). |
October
24, 2003 TTS
Results page |
Hanging
Loose |
The Trend
Timer's ability to relax, take it easy, or chill-out in the face of the
market's endless ups and downs. A state of mind derived from having one's
investment house in order, and at all times knowing exactly what to do. |
June
4, 2004 TTS |
HOLDRS |
A family
of Exchange Traded Funds offered by Merrill Lynch. Specialized in sector
and industry funds. |
October
24, 2003 TTS |
Hulbert
Financial Digest |
A
completely independent, impartial and authoritative investment newsletter
rating service. The Hulbert Financial Digest started tracking TimingCube
on April 30, 2003 and has reported on our signals and results since then.
Acronym: HFD. |
"Ranked
#1 over 1 year by TimerTrac" on the Home
page
Hulbert
Financial Digest URL |
|
|
Independently-verified |
What
is TimingCube's
track record which has been monitored by independent, impartial and authoritative
investment newsletter rating services |
"Ranked
#1 over 1 year by TimerTrac" on the Home
page |
Index |
A stock
market index is a hypothetical portfolio of securities representing a particular
grouping of companies. An index can be broad or narrow and can correspond
to an entire stock market exchange, country or region, or focus on a particular
segment of the market. In general and index is transparent and its components
are publicly disclosed. |
|
Index
ETF |
An Exchange
Traded Fund which tracks a stock market index. |
|
Index
investing |
An investment
technique which consists of buying the market as a whole instead of individual
stocks, in which index funds are the preferred investment vehicles. |
|
Index-beating
performance |
The results
achieved with an investment system which historically outperforms stock
market indexes. TimingCube
is one such system. |
|
indexes |
Plural
of index. Same as indexes. |
See
Index |
Individual
Retirement Account |
A retirement
plan providing individual taxpayers a tax-advantaged way to save and invest
for the future. Contributions to the various types of IRAs (SEP, SIMPLE,
Roth, and Traditional) can be tax-deductible and/or tax-deferred depending
on the type and the taxpayer's circumstances (income, tax status, etc.).
The long term Trend Timing approach to investing is well suited for qualified
retirement accounts. Acronym: IRA. |
December
5, 2003 FAQ |
Inverse |
The daily
objective of a bear mutual fund that seeks the daily performance of increasing
in value when the tracked index declines, and decreasing in value when the
index rises. Buying such a fund is equivalent to being short (selling short)
the index. On a day the index moves up 1%, such a fund should decrease by
1%. On a day the index moves down 1%, such a fund should increase by 1%
(all before fees and expenses). |
|
Inverse
correlation |
A connection
between two or more things (stocks, market indexes) in which a mutual influence
causes them to move in opposite directions. |
|
Investor |
An individual
who seeks long term gains by investing in the stock market. Trend Timers
are long term investors. |
October
3, 2003 TTS |
IRA |
See Individual
Retirement Account. |
|
IVV |
iShares
S&P 500 Index. An Exchange Traded Fund tracking the S&P 500 index. An alternative
to SPY. |
|
IWM |
iShares
Russell 2000 Index. An Exchange Traded Fund tracking the Russell 2000 index. |
October
24, 2003 TTS |
|
|
Leverage |
The use
of borrowed money or other financial instruments to potentially increase
the returns of an investment. |
Also
see Margin |
Leveraged
fund |
A mutual
fund which employ various financial instruments to achieve leverage in order
to increase performance. Leveraged index funds generally seek to achieve
a daily objective of double or double the inverse of the index they track.
ProFunds and Rydex are two fund families offering such funds. |
November
28, 2003 FAQ |
Long
and Short |
An investment
strategy which consists of buying stocks during up trends, and selling stocks
short during down trends. This is Trend Timing's bread and butter strategy
which provides an excellent risk/reward tradeoff. |
Our
Service page |
Long
and Short with Margin |
A leveraged
investment strategy which consists of buying stocks on margin during up
trends, and selling stocks short on margin during down trends. This is the
Trend Timing strategy which has historically achieved the highest returns
but which carries the highest risk and volatility. |
Our
Service page |
Long
Only |
An investment
strategy which consists of buying stocks during up trends, and staying in
cash or money market funds during down trends. This is Trend Timing's most
conservative strategy. |
Our
Service page |
Long
Only with Margin |
A leveraged
investment strategy which consists of buying stocks on margin during up
trends, and staying in cash or money market funds during down trends. |
Our
Service page |
Long
or "being long" |
The opposite
of "short". Equivalent to owning stock. |
|
Long
term investing |
A type
of stock market investing which focuses on periods of years instead of days,
weeks, or months. Trend Timers are long term investors. |
|
|
|
MA |
See Moving
Average. |
|
Maintenance
margin |
The minimum
ratio of investor owned assets to total margin account value. The SEC requires
a minimum of 25% but individual brokers can be more restrictive and require
a higher margin. Failure to keep an account at the maintenance margin or
above can cause the broker to issue a margin call. |
November
14, 2003 TTS |
Margin |
The ratio
of borrowed funds in a margin trade. Full margin, also called 50% margin,
is the maximum leverage allowed and signifies that out of every dollar invested
50 cents are borrowed money. |
Also
see Margin trading |
Margin
call |
A demand
by the broker that an investor either add more funds or liquidate some assets
to bring a margin account to the minimum maintenance margin required. Synonym:
FED call. |
November
14, 2003 TTS |
Margin
trading |
A trading
method applying leverage to an investment by investing borrowed money in
addition to your own. Margin can be used for both long and short trades.
Margin lets you double the size of your investment and results in a doubling
of the returns, gains or losses. Margin trading is an important tool of
Trend Timing offering the potential of achieving higher returns. |
November
14, 2003 TTS |
Market
Capitalization |
Market
Cap for short, represents the value of a company or fund expressed as the
total number of outstanding shares multiplied by the price or Net Asset
Value (NAV). |
|
Market
index |
See Index. |
|
Market
Update |
The section
of our Friday Weekly Update providing our commentary on the week just past
in the stock market, summarizing what the market is doing and what it means
to our current signal and position. |
|
Match |
The daily
objective of a bull mutual fund that seeks to achieve 100% of the performance
of the tracked index. Buying such a fund is equivalent to being long (buying)
the index. On a day the index moves up 1%, such a fund will seek to increase
by 1%. On a day the index moves down 1%, such a fund will seek to decrease
by 1% (all before fees and expenses). |
|
Mechanical
investing |
A mechanical
investing model is entirely based on hard and widely accessible information,
and which applies a set formula to determine the buy and sell actions. Mechanical
is superior because there is no emotion involved, no educated opinions,
or interpretation of qualitative information. Also, the mechanical model
is by definition repeatable. |
|
Model
|
TimingCube's
100% mechanical, unemotional market timing formula which detects changes
in the broad market trend. The Model issues simple, definitive Buy,
Cash, or Sell
signals in function of the trend. |
Our
Service page |
Momentum
Investing |
An investment
strategy consisting of buying investments that are currently performing
the best. Unlike Trend Timing, the premise of momentum investing is that
investments that have already outperformed the market in the past are likely
to continue their winning ways. |
November
28, 2003 TTS |
Moving
Average |
A technical
analysis indicator which averages data such as price over a certain time
period. Moving averages always lag the market. A simple moving average uses
the same weight to each data element. Acronym: MA. |
October
31, 2003 TTS also
see Exponential Moving Average |
Mutual
funds |
An investment
vehicle allowing investors to purchase an entire portfolio of securities.
Mutual fund portfolios can consist of equities, bonds or other securities.
Funds can be actively managed or track an index. The fund share price (NAV)
fluctuates in function of the demand for the underlying securities and the
fund itself, and is typically determined once a day. |
|
|
|
Nasdaq |
National
Association of Securities Dealers Automatic Quotation System. Nasdaq is
now the largest U.S. electronic stock exchange. Approximately 3,500 U.S.
and international companies are listed on the Nasdaq exchange. |
http://www.nasdaq.com/
|
Nasdaq
100 |
A stock
market index that includes 100 of the largest domestic and international
non-financial companies listed on the Nasdaq stock exchange. This is the
index tracked by QQQ, one of the favorite investment vehicles of Trend
Timers. |
|
Nasdaq
Composite Index |
One of
the broadest, most widely followed and quoted market indexes. It includes
all domestic and international based common type stocks listed on the Nasdaq
Stock Market (approximately 3,500 companies, more than most other stock
market indexes). |
Our
Service page
October 17, 2003 TTS |
Nasdaq
Stock Market |
See Nasdaq. |
|
NAV |
See Net
Asset Value. |
|
Net
Asset Value |
The price
of a mutual fund share, usually calculated at the end of the trading day.
Acronym: NAV. |
|
Nikkei |
A stock
market index representing to Tokyo (Japan) Stock Exchange. |
October
24, 2003 FAQ |
NYSE |
New York
Stock Exchange. |
|
|
|
ONEQ |
An Exchange
Traded Fund (ETF) managed by Fidelity Management & Research Company and
is listed on The Nasdaq Stock Market. It seeks to provide investment returns
that closely match the price performance of the entire Nasdaq Composite
Index. |
October
24, 2003 FAQ also
see Nasdaq Composite Index |
Open |
Short
for opening price. The first value a security or an index obtains when the
corresponding stock exchange opens for trading. |
|
Opinion |
oword2
definition A subjective belief or conclusion held but not substantiated
by facts or proof. Opinions have no part in the TimingCube
Model. |
|
|
|
P/E
ratio |
See Price/Earnings
ratio. |
|
PDA |
Personal
Digital Assistant. A pocket sized device featuring many of the capabilities
of a desktop computer. |
|
Portfolio |
The ensemble
of assets held by an investor or a fund. |
January
23, 2004 TTS |
Portfolio
diversification |
The action
of distributing one's financial assets amongst diverse assets and securities
to reduce risk by limiting exposure to any one of them. |
January
23, 2004 TTS |
Prediction |
A forecast,
guess, or prophecy about the future direction of the stock market. No one
can accurately and consistently predict the market. Instead, Trend Timing
is a trend following system. |
January
2, 2004 TTS |
Price/Earnings
ratio |
A measure
of a company's valuation calculated as the stock price divided by the Earnings
Per Share (EPS). Acronym: P/E. |
|
ProFunds |
A mutual
fund family offering many bull and bear funds appropriate for the Trend
Timing investment philosophy. |
November 28, 2003 FAQ
Profunds URL |
Prophecy |
See Prediction. |
|
|
|
QQQ |
The Nasdaq
100 index tracking stock listed on the Nasdaq. This is one of the largest
and most popular Exchange Traded Fund (ETF) and a favorite of Trend Timers.
It works like a fund but trades like a stock. |
|
QQQ |
The Nasdaq
100 index tracking stock listed on the AMEX until December 1, 2004. This
ETF then moved to the Nasdaq and underwent a symbol change to QQQ.
It was often referred to as "Qubes" or "triple-Q". |
|
Quadrants |
Four
different market states representing bull/bear and Buy/Sell
combinations. The quadrants are not actionable information; instead they
help Trend Timers to understand the then prevailing market psychology. |
December
19, 2003 TTS |
Qubes |
See QQQ |
|
|
|
Resources |
Sources
of valuable information for the investor such as information such as closing
prices and volume, historical prices, charts, or investing answers in general. |
January 30, 2004 FAQ |
Retirement |
The act
of retiring or the discontinuation of one's professional occupation. The
Trend Timing wealth building system helps investors prepare for their retirement
and to continue growing wealth during retirement. |
December
5, 2003 FAQ |
Right
side of the market |
An investor's
position when in tune with the broad market trends, long during an up trend
and short during a down trend. |
|
Risk |
The probabilities
of losing money in an investment. |
|
Risk
tolerance |
An investor's
ability to take volatility and losses without excessive discomfort or distress. |
|
Russell
2000 |
A U.S.
stock market index composed of 2,000 small-cap companies. |
Our
Service page
October 17, 2003 TTS |
Rydex |
A mutual
fund family offering many bull and bear funds appropriate for the Trend
Timing investment philosophy. |
November 28, 2003 FAQ
Rydex URL |
|
|
S&P
500 |
A stock
market index which embodies 500 of the largest companies on the U.S. stock
market. |
Our
Service page
October 17, 2003 TTS |
SEC |
See Securities
Exchange Commission. |
|
Securities
Exchange Commission |
The U.S.
government agency whose primary mission is to protect investors and maintain
the integrity of the securities markets by issuing and enforcing regulations.
Acronym: SEC. |
http://www.sec.gov/ |
Security |
A trading
instrument representing ownership or debt. |
|
Sell |
The action
of disposing of a security in exchange for cash. |
|
Sell
short |
See Short
selling. |
|
Share |
The smallest
stock equity division representing ownership in a corporation. |
|
Sell
signal |
The actionable
indication that our Model has detected a change in the broad market trend
to the down side, signifying it is time to go to cash, or to short the market,
depending on the selected strategy. |
|
Shareholder |
An investor
with an ownership interest in a publicly traded company. This extends to
individuals or other entities holding shares of stock or any security. |
|
Short |
The opposite
of "being long" or owning a stock. When an investor is short a stock, he
owes his broker the stock that was borrowed and sold as part of a short
sale. |
Also
see Short selling |
Short
covering |
The closing
of a short position. In this transaction an investor buys a stock and returns
it to his broker. |
Also
see Short selling |
Short
selling |
The opposite
of "going long" or buying a stock. A transaction that consists of selling
a borrowed stock in the hope the price of that stock will go down so that
the shares owed the broker can be replaced at a lower cost, thus resulting
in a gain. Short selling is an important tool of Trend Timing which makes
it possible to benefit from falling markets. |
November
7, 2003 TTS |
Signal |
The actionable
indication that our Model has detected a change in the broad market trend.
Signal can be of the Buy, Cash,
or Sell type. |
Our
Service page |
Signal
by phone |
The service
allowing a subscriber to obtain the current signal status via telephone
from anywhere in the world. |
February
27, 2004 FAQ |
Signal
update |
The section
of our Friday Weekly Update bringing up to date our current signal position
and performance since issued and since our first live signal. |
|
Smartphone |
A SmartPhone
is a mobile device combining the capabilities of a wireless phone with PDA-type
functionality. Can be used to securely access the TimingCube
Current Signal. |
|
SPDRs |
The acronym
for Standard and Poor's Depositary Receipts. Known as "Spiders," a SPDR
is an Exchange Traded Fund (ETF). The largest and best known SPDR is SPY
a fund which holds shares of all of the companies in the Standard & Poor's
500 Composite Stock Price Index (S&P 500). There are also SPDRs that represent
other indexes or particular industry groups. |
October
24, 2003 FAQ |
Speculation |
The act
of engaging in a risky investment transaction with the hope of quick and/or
large gains. Trend Timers are not speculators. |
|
Speculator |
An individual
who seeks large gains by investing in high risk, unproven assets, betting
that they will appreciate over time. Trend Timers are not speculators. |
October
24, 2003 TTS |
SPY |
The S&P
500 index tracking stock and first of the SPDRs. This is one of the largest
and most popular Exchange Traded Funds (ETF) and a favorite of Trend Timers.
It works like a fund but trades like a stock. |
October
24, 2003 FAQ |
Stock |
A type
of equity security representing ownership in a corporation. It imparts the
holder a claim on the corporation's assets and future earnings as well as
voting rights. Stock can be privately held or publicly traded and can be
of different types such as common and preferred. |
|
Stock
exchange |
A company
that lists corporations and supervises the exchange of their stock. Some
exchanges have a physical trading location, "the floor", where traders make
trades, others are entirely operated online. Examples are Amex, Nasdaq,
and NYSE. |
|
Stock
market |
The ensemble
of all the publicly traded equity securities and stock exchanges where they
are traded. |
|
Stock
market index |
See Index. |
|
Stock
market timing |
An investment
strategy which consists of moving in and out of the market based on predictions
about future direction. This strategy is the opposite of buy and hold. Market
timing has often been confused with illegal practices in the mutual fund
industry. Market timing predicts the market direction but Trend Timing follows
the market trend. |
November
21, 2003 |
Stockholder |
The individual
or corporate owner of stock equity in a corporation. |
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Stop |
See Stop-loss. |
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Stop-loss |
A lower
limit price at which to sell a security to prevent further losses. |
June
11, 2004 FAQ |
Stop
order |
A broker
transaction implementing a stop-loss. This is a sell order which only gets
executed when the price of the security declines to the set stop price. |
Also
see Stop-loss |
Strategy |
A plan
of action intended to accomplish a specific goal. The Trend Timing system
defines 4 distinct investment strategies presenting the investor with diverse
risk/reward choices. |
Our Service
page |
Strategy
diversification |
The action
of selecting diverse investment strategies to reduce risk by limiting the
exposure to any one strategy. |
January
23, 2004 TTS |
Support |
See Customer
Service. |
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Technical
analysis |
A method
of evaluating securities and/or markets based entirely on past and present
data such as price and volume to identify patterns that suggest future activity.
TimingCube
Model is strictly based on technical analysis. |
October
10, 2003 TTS |
Tick
test |
See
Uptick rule. |
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Ticker
symbol |
The characters
by which a security is identified. Examples are QQQ and
SPY. |
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TimerTrac.com |
An independent
organization that monitors and tracks market timing services. They started
tracking TimingCube
on June 22, 2002 and have reported on our signals and results since then. |
http://www.timertrac.com/ |
TimingCube |
A popular
investment subscription service offering an alternative to buy and hold
investing designed to profit in both rising and falling markets. The inventors
of the Trend Timing investment philosophy. |
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Trader |
An individual
seeking short or medium term gains by frequently moving in and out of the
stock market. Trend Timers are generally not active traders. |
October
3, 2003 TTS |
Trading |
The act
of exchanging, buying or selling, securities. |
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Trailing
stop |
A stop
that is moved up as the price of the security moves up. A stop is the lower
limit price at which to sell a security to prevent further losses. |
November
14, 2003 FAQ
March 12, 2004 TTS |
Trend |
The trend
is the predominant direction of the broad market. The trend is either up
or down. Even during periods when the market seems trendless, the underlying
trend remains until a change is detected. As Trend Timers we are trend followers
and as long-term investors, the trend we are interested in is where the
market is likely headed in the next 3 to 6 months, which correlates with
our average of 3 to 5 trades per year, and average signal duration of 3+
months. |
September
26, 2003 TTS |
Trend
change |
The modification
or reversal of a broad market trend. |
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Trend
following |
A style
of stock market investing which uses observation of the broad market trend,
and the detection of trend changes, to derive the timing of buy and sell
signals. |
Also
see Trend Timing |
Trend
Timer |
An individual
applying the Trend Timing investment philosophy. |
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Trend
Timing |
A unique
form of market timing consisting of following the broad market trend to
profit in both rising and falling markets. An alternative to buy and hold
investing. TimingCube
are the inventors of the Trend Timing investment philosophy. |
Our Service
page |
Trend
Timing School |
The section
of our Friday Weekly Update providing short teachings on our stock market
timing Model and philosophy, as well as investing in general. Acronym: TTS. |
Trend
Timing School page |
Triple-Q |
See QQQ. |
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TTS |
See Trend
Timing School. |
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Unemotional
model |
A 100%
mechanical investment model relying entirely on factual information instead
of subjective beliefs or conclusions The TimingCube
Model is an unemotional model. |
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Uptick
rule |
A long
standing SEC regulation to protect stocks in falling markets. The rule prevents
short selling of a stock if the previous trade was a downtick. Also call
the Tick test. |
November
7, 2003 TTS |
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Volatility |
The amount
and frequency of price variations of an index or security. |
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Walkthrough |
see Site
Walkthrough |
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Wealth |
The abundance
of valuable assets. The objective of every Trend Timer. |
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Weekly
update |
TimingCube's
periodical subscriber communication vehicle. Is published every Friday evening
after market close. Consists of the Signal Update, Market
Update, Trend Timing School, and FAQ of
the Week. |
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Wild
prediction |
A forecast
or prediction made by an advisor, broker, or pundit about the future direction
of the stock market. Since no one can reliably and consistently predict
the future of the stock market, Trend Timers prefer a trend following approach. |
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Yearly
return |
The investment
return in a given calendar year. Unlike annualized returns yearly returns
represent the actual performance for the year. |
November
7, 2003 TTS |
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