Schwab TIPS 365 is an aggressive growth investment strategy focusing on momentum. We continually track a watch list of 20 high-performing stocks and ETFs, and aim to be actively invested in roughly 10 of them at any given time. We purchase them as they hit an upward trend, and sell them when that trend reverses. All trades are short-term, generally holding from one day up to a few weeks.
The service is available for $365/year (just a dollar a day!) or $36/month. You can start with a 30-day free trial to see if the strategy is right for you. We also offer a referral program that allows you to earn free monthly credits towards your subscription.
While we highly recommend Charles Schwab for its zero-fee trading and excellent platform, this strategy can be executed on any brokerage platform (e.g., Robinhood, Fidelity) that allows daily trading.
No! Some brokers like Schwab don't maintain a minimum balance. You can start with $1,000, or just buy a single share to practice the order process until you get comfortable with the mechanics.
Because this strategy relies on short term capital gains and frequent trading, we strongly recommend using a tax-deferred account, such as a Traditional IRA, Roth IRA, or self-directed 401(k). This allows you to avoid tracking and reporting individual short-term gains on your taxes every year. If you have money in a mutual fund within your IRA, you can simply sell a portion of the mutual fund to cash, allowing you to use that cash to fund your TIPS 365 trades.
Checking your emails and executing trade orders should take no more than 5 to 10 minutes a day once you're comfortable with the process.
Our recommendations are strictly data-driven to keep emotions out of investing. They are based on a "Performance Ranking," which looks at a stock's historical return over the last 1-month (weighted at 40%), 3-months (30%), 6-months (20%), and 12-months (10%). We then combine these rankings with technical indicators (like moving averages and candlestick reversals) to confirm buying momentum.
It is critical to follow the trend. A "Buy Stop Market" order acts as a circuit breaker; the order is only placed if the stock is trending *up* and hits your price. A "Buy Limit" order might execute as a stock is crashing downwards—meaning you're catching a falling knife. On the sell side, a "Sell Stop Market" order protects you from large losses if the stock crashes.
Stop orders are only active during regular market hours (9:30 AM to 4:00 PM EST). If a stock gaps up overnight, your Buy Stop order will activate at market open and you may occasionally experience "slippage" where the stock is purchased at a slightly higher price than the stop. Do not worry. The goal is to catch momentum breakouts. You don't want to use Limit orders to avoid slippage, because you might completely miss out on massive upward gains.
We do not try to guess the exact top of the market. Once we own a stock, we immediately set a "Sell Stop" downside protection. As the stock continues to naturally rise and gain value, the Sell Stop price will be systematically "ratcheted up" in your daily emails. When the stock finally peaks and begins to fall, it will hit your ratcheted Sell Stop, automatically locking in your profits.
GTC stands for "Good 'Til Canceled." Whenever you place a Buy Stop or Sell Stop, make sure you select GTC for the duration. This ensures the order remains active the next day if the target price is not hit immediately.
Our daily email is sent out shortly after the market closes. You should enter your orders that evening or before the market opens the following morning.
Stocks on the Watch List have a very high Performance Ranking but have not yet completed a technical reversal giving us the "all clear" buy signal. You do not need to take any action on Watch List stocks until they receive an active "Buy Stop" price.
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Questions? Email us at contact@tsptips.com
