1. How often does AAP send out Action Alerts?

Action Alerts are driven by the action in the market. The AAP Team will tell subscribers if they see a move they'd like to make in the market, even if they can't make it themselves because they are restricted from trading. When the market is busy or before earnings season, the team has been known to send as many as five alerts in a day; there also will be days when there are no alerts. There is no minimum or maximum number of Action Alerts per day, week or month. However, every week you can look forward to the Weekly Roundup on Friday, when the AAP Team will review every stock in the Action Alerts PLUS portfolio.

2. How long does the AAP Team hold the stocks in the portfolio?

The AAP Team can sell the stocks at their discretion. There is no maximum period for holding a stock; that is, AAP is not required to sell a stock after a certain period. Some stocks in the portfolio have been held for as long as two years, but most are sold much sooner. Every Friday in the Weekly Roundup, the AAP Team rates every stock in the portfolio according to how much the AAP Team wants to buy it or sell it, and stocks rated Four are stocks they want to sell as soon as restrictions allow. Four-rated stocks usually are not just being pared back but will be sold off entirely. See the Glossary for more on the Ones, Twos, Threes and Fours rankings.

3. What is the best way to use this service? How should I follow the advice?

What is best for you depends on your goals and risk tolerance. Well-capitalized investors with a high risk tolerance may wish to follow AAP moves more closely. Others may find the most value in using Action Alerts PLUS as a teaching tool, rather than by acting on each Alert. For more information on starting to use Action Alerts PLUS, see the Getting Started page. As always, before trading based on Action Alerts PLUS or any other investment information, assess your investment objectives and other criteria used by individual investors when making an investment decision. You are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional before you make any investment.

4. What is the minimum amount of money that a new or potential user should have to get started with the service?

Only you can determine the amount of risk that you are prepared to take on. Before trading based on Action Alerts PLUS or any other investment information, assess your investment objectives and other criteria used by individual investors when making an investment decision. You are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional before you make any investment. The AAP Team often emphasizes to readers and listeners that a minimum portfolio investment of $5,000 is needed in order to achieve diversification across several sectors. They also consider five stocks the minimum needed to achieve a diversity of holdings. They do not encourage speculation with funds that should be treated conservatively, such as retirement funds or funds essential to living expenses.

5. How do I email the AAP Team?

The AAP Team appreciates your email. Click here to send them an email through our Website.

6. What should I buy first?

In general, new Action Alerts PLUS users should consider buying One-rated stocks from the most recent Weekly Roundup, using the portfolio's weighting percentages as a guide. Round out those holdings with some Two-rated names, making sure you maintain a diversified portfolio. Once that base is established, the best way to track the Action Alerts PLUS portfolio's performance is to act according to the Alerts. You also may choose to act on Alerts that convey a trade the AAP Team is restricted from making. As always, before trading based on Action Alerts PLUS or any other investment information, assess your investment objectives and other criteria used by individual investors when making an investment decision. You are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional before you make any investment.

7. Why does the AAP Team say to buy a stock that is going down?

The AAP Team believes in buying stocks on weakness, a variation on the common wisdom, "buy low, sell high." They will often make several purchases of a stock as it falls to improve cost basis in a stock for the Action Alerts PLUS portfolio. There are risks associated with this practice, namely, that the stock will continue falling. As always, before trading based on Action Alerts PLUS or any other investment information, assess your investment objectives and other criteria used by individual investors when making an investment decision. You are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional before you make any investment.

8. How many stocks should I own?

A rule of thumb for establishing how many investments to hold is one hour of homework per stock per week. Consider that the AAP Team spends most of each day looking at the market and conducting stock research. They also consider five stocks the minimum needed to achieve diversification. As always, before trading based on Action Alerts PLUS or any other investment information, assess your investment objectives and other criteria used by individual investors when making an investment decision. You are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional before you make any investment.

9. Why does the AAP Team make several small purchases or sales for Action Alerts PLUS instead of buying or selling a whole position at once?

The AAP Team believes that by making several purchases or sales and spreading trades out over time, will likely improve cost basis if the stock moves lower, or capture greater profits as a stock moves higher while protecting capital in case it starts to move lower again. You may know this as Rule No. 3 from TheStreet 25 Investing Rules, "don't buy all at once; arrogance is a sin." As always, before trading based on Action Alerts PLUS or any other investment information, assess your investment objectives and other criteria used by individual investors when making an investment decision. You are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional before you make any investment.

10. Does the AAP Team short stocks?

No, the AAP Team is restricted from shorting stocks. The Action Alerts PLUS portfolio does not discuss strategies for shorting stocks.