FAQ

Best Choice Software FAQ

What is the Market Timer app?

Market Timer by Best Choice Software is a cloud-based computer program covering stocks, mutual funds and options. It maintains a historical database of both price and earnings of over 8000 US. Stocks. All the data resides on the cloud so Market Timer can be accessed from anywhere at anytime.

Market Timer is a end-of-day search and sort trading decision software for swing trading, short term trading and seasonal trading for stocks, ETF's, commodities and mutual funds. When used effectively, the Market Timer app removes the guesswork and emotion of trading and provides 100% objective trades with a precise pre-defined entry date, exit date and rating that gives you the confidence to make a better informed decision.

Market Timer uses a proprietary sophisticated search engine that analyzes billions of combinations of entry and exit dates for the markets included in Market Timers database. The program filters and identifies high odds seasonal trades that include historical accuracy and trade length.

Market Timer by Best Choice Software has 3 distinct concepts: (1) A "short-term" swing trading program designed to tell the trader where to buy, sell and place protective stops on trades. Normally, most trades last between a day and a few weeks. The average trade lasts 4-5 days and the wizard helps selectively pick stocks good for swing trading. (see short-term) (2) A "long-term" oriented investing program that utilizes price and earnings growth rates. It is designed to identify good growth stocks with earnings that support a continued growth. (see long-term) Both 1 and 2 are included in the basic Market Timer subscription. (3) An option package that works in conjunction with the long-term screen. It is designed to help an options trader select stock options that have a high probability of success based upon the growth characteristics of the stock.

With Market Timer, you know AHEAD OF TIME what stock you'll be trading, the historical risk/reward, exact entry date, exact exit date, and all historical relevant performance statistics. Whether its FB, AMZN, NFLX, GOOGL or PCLN Market Timers can show you the best time of year to trade them. You'll be so far ahead of other traders that you'll wonder why everyone doesn't trade based on seasonality.

Why is Market Timer by Best Choice Software better than any other stock software?

Here are just a few reasons ...

Market Timer uses protective stops on trades and tells you where to put them. Many stock software programs do not use stops and as a result do not tell a user what to do when the trades go against them. This can lead to catastrophic losses.

Market Timer rates every stock for its trading characteristics- good or bad. You know in an instant whether it is worth trading or not. This rating system is exclusive to us, Best Choice Software.

Market Timer by Best Choice Software looks at the fundamental earnings position of a stock and the growth history. If you had a choice between owning a successful business or an unsuccessful business, which would you choose? The answer is successful of course, and the more successful the better. The success of a company is apparent in its earnings growth history. In most cases, consistent earnings growth leads to consistent price growth. This is the consistent successful pattern that an investor wants to see for his money to multiply.

The Market Timer app has a sophisticated search wizard to find these great stocks out of the 32,000+ candidates.

Market Timer's stock option program gives the clearest picture of the future, based upon price patterns, earnings and option prices. It identifies large divergences between where the current price and earnings trends project a stock and where you can buy or sell the stock in the future using options. No other software shows this.

Market Timer includes a video tutorial with the rental or purchase, which is more than 2 hours in length. This could be played over and over to help a new person understand how to use the software and understand the markets. We also have free technical support (within reason) and make it our goal to help our users succeed with Market Timer by Best Choice Software.

How long has this product and your business been around?

Containing only the long-term portion, Market Timer was first shown to a group of investors and traders in Sarasota, Florida in 1997. The response was overwhelming and from that moment Best Choice Software was born.

In the fall of 2002, the options portion of Best Choice was added, which was welcomed with tremendous success. New investors and traders are welcomed every day and through the use of the program, we help them to be successful in the markets. As a company, we have attended all the major financial trade shows in the United States and Canada since January of 2000. Considering that most of the general investing public took a financial beating from the spring of 2000 to the spring of 2003, we have had explosive growth.

How can I back test Market Timer trades?

Market Timer by Best Choice Software shows each and every trade on every stock. There is nothing to hide. You have entrance and exit conditions for a trade. We have identified the characteristics of a stock that make it a great trading stock. Once you understand this, it is just a matter of finding the stocks and trading them.

Most stocks continue to perform the way they have in the past. There is no guarantee that past performance will generate future profits. The stock market involves handling risk. As long as you are short when the market falls and long when the market goes up, you will make money. You are on the winning side of the move. The important concept is to maximize your profits and minimize your losses.

What are the computer system requirements?

You only need a web browser on a tablet or any computer to use Market Timer by Best Choice Software. The Market Timer app works best on modern web-browsers like Google Chrome, Microsoft Edge, Mozilla Firefox or Apple Safari. The Market Timer app is not intended to display on cellular phones - like iPhones - at this time, but it will work on tablets with a minimum with of 1024 pixels.

All data is stored on the cloud, so rest assured that the Market Timer app will not use all of your precious disk space.

We also recommend at least a 15" screen or larger to view the charts easier.

Does it help you with decisions concerning stock options or just stocks?

For example, put and call strategies? Yes. If you trade options, you have bullish and bearish strategies available - just like stocks. You have to have your logic established for decision-making. In our option program, we use the wizard to find stocks where opportunity presents itself. It helps to guide us on bullish, bearish or neutral strategies and which stocks afford us the best choice.

Are upgrades included?

Market Timer by Best Choice Software comes with regular updates included in the subscription. Rest assured that you will always have the latest and greatest features at your fingertips.

Do I need a data feed to use this software?

No. Stock market data is included with a Market Timer or National Data subscription. Our data feed is powered by Thompson Reuters. End of Day data is updated automatically every day.

Could your software help me in my Mutual funds?

Yes. The program is capable of viewing, sorting and searching all 17,000+ Mutual Funds.

Do you have a version I can install on my computer?

By popular request, we have migrated our service from a local executable to the cloud. We will no longer be selling a locally installed version of our service. If there is enough demand by our customers, we would be open to re-introducing a locally installed version, or mobile ap, for Market Timer by Best Choice Software.

Is there any guarantee with the software (e.g. cancellation in 10 days if I don't like it??)

We are currently selling a 1 month trial at a great promotional rate of $19.99 for one month. We recommend taking advantage of this opportunity. Records show that 93% of the people who have ever subscribed to the Market Timer app and used it have gone on to purchase it. Basically, this tells us that most people like the product and want to use in the future. If you do not like the product, you may cancel at any time.

What is the difference between short-term and long-term trading/investing?

A swing trader is normally looking for highly volatile stocks. This type of trader wants to ride the up and down movement of a stock like a roller coaster. The greater the movement, the more the potential profit. A trader wants to be long on the up move and short on the down move. The move may last a day up to a few weeks before it reverses. We consider this short-term trading.

An investor is normally looking for less volatile stocks. These are stocks that have a good growth pattern, but don't bounce around too much. These are usually stocks supported by a good earnings history and have a high probability of upward price movement. An investor is focused on a stock's growth characteristic and to do this he must look at the company's earnings and their future prospects. Since earnings only come out 4 times a year, he must look at longer duration charts.

Thus, traders and investors are normally looking for 2 different types of stocks. The wizard is the tool that finds them. For short-term, we use candlesticks and default to 3 months and for long-term we use range lines and default to 10-years maximum if price history is available.

What is the difference between short-term swing trading and a day trader?

A third type of trader (see 1 and 2 above) is the intraday trader or sometimes called a 'day trader'. This is a person who is doing very short duration trades and is in and out of a position during the course of one day. An intraday trader must be watching price movements during the day and is therefore a slave to his computer. He has a short time to make a decision and must act quickly. Day trading can be stressful, because usually large leveraged positions are taken in an attempt to profit quickly. This involves increased risk and loss when the trade goes against you. Most day traders lose. Since the Market Timer app is an end of day program, it is not designed to accommodate this type of trading. Market Timer by Best Choice Software is designed so that a person doesn't have to watch his computer all day and can have a job, hobbies, or generally have a life without being a slave to your monitor and stressed out over the markets.

How can I see a new stock?

When you log into the app, the top menu has a search area. Click in this area and type the name of a company or a stock symbol and then hit ENTER. If the symbol is valid, your chart will then update with the data for that symbol.

A second way to see a stock is from a user list. The user list is located on the right bottom of the screen side and you can click any stock to see its chart.

What is a user list?

A user list is a sub group of stocks that the user creates. You can either create them using the wizard or you can manually create a list and populate it with stocks. You can create as many lists as you want. When you delete a stock from a user list, you do not delete the stock from the database. The user lists can be created or deleted independent of the program's main database of stocks.

An example of a user list might be a list of the stocks that you own. It is suggested that when you create a list that you date it as part of the name. This is because when you have many lists, you know which ones are the oldest. You create user lists in the User Lists Manager.

How can I change time frames and what time frame should I look at?

On the icon bar, you have a dropdown time frame list box where you can choose from 1 month to all data. On any chart you can hold the left mouse down and drag it diagonally across the screen to create a white box that represents a time frame selected. When you select your own time frame then in the time frame list box, you will see "MH" for Managed History. When you select your own time frame, you can always change it back to the original "All Data" by clicking the dropdown list at the top.

On the long-term charts, the all data chart will show longer-term characteristics about the stock. For example, BBBY or NVR have consistent growth over a 10-year time frame, whereas most of the oil stocks show a cyclical price and earnings pattern. For the oil stock then, it depends upon what part of the cycle it is in.

For decision-making, you should look at the most recent time frame, maybe 2 years. Earnings only come out once a quarter and one earning report tells very little. With 2 earnings, you can "connect the dots" and calculate a growth rate. With 3 earnings, you can now see some degree of volatility. Consequently, you need at least 3 quarters, which is 9 months. So somewhere between 9 months and 2 years gives you a good picture. Often, a stock may have had earnings losses in its past. Long red bars on the bottom identify the losses. Now they are starting to make money. You want to look from the beginning of the time frame when they started to make money. This normally shows a better relationship between the price and earnings.

For short-term, we default to 3 months to evaluate the stock. It is helpful to select other time frames to see if the stock performed equally as well. For example, if the stock is excellent over 2 months, 6 months and a 1-year time frame, it is demonstrating that it has good trading characteristics and will most likely continue to have good trading characteristic. Stock picking for swing trading is very important. You need a stock with the right characteristics to be successful.

What are the three yellow and/or three green lines on the long-term chart?

The center yellow line identifies the average growth rate of the price of the stock and the center green line identifies the average growth rate of the earnings. The upper and lower yellow lines are called 'alert lines' and they alert us to abnormally high or low prices in relationship to the average growth. The green earnings lines do the same for earnings.

The quarterly earnings you show are not what I hear as being reported. Why?

When you calculate a P/E ratio, the price (P) is the current price and the earnings (E) are for the most recent 4 quarters. This tells you what the price is in relationship to one year worth of earnings. For example, if the P/E ratio were 10, then it would take 10 years of earnings at the current rate to equal the price of the stock.

We use what is called an "annualized quarterly" earning. This means that the current quarter is added to the last 3 quarters to give an annual figure reported on a quarterly basis. This tends to treat quarterly changes on a fairer basis (see long-term).

Why do you not have earnings for all stocks?

For some stocks, it is very difficult to get the earnings. A foreign company, for example reports their earnings in their local currency. This would have to be converted to US currency. Now, you have a currency conversion consideration. On which day would you choose to convert the currency? Remember, quarterly earnings are for a period of time.

My stock was $100 a year ago and today it is $120. Why wouldn't you show this be a 20% growth rate?

If you make $20 profit on a $100 investment in a year, it is 20%. This is a year to date method of calculating a growth rate. It takes into account only 2 days out of the year. Suppose someone had bought the stock 6 months ago at $400 and now it is $120. You would have a hard time convincing him that he had a 20% growth rate. Can you begin to see the problem with selectively taking only 2 days out of the year to calculate a growth rate?

What we do in the Market Timer app is that we use all the days of the year. This gives you the average annual growth rate. It is a more complex calculation that you would not want to do by hand. It also gives us a measure of volatility over the year. This helps us avoid taking one extremely high and one extremely low day to calculate a distorted growth rate.

What are candlesticks and why are they considered short-term?

Candlesticks are a visual representation of a daily trade history. We use them in our short-term analysis because they provide a better visual understanding of what happened that day.

What are the 2 yellow horizontal lines to the right of a short-term chart?

They identify a 'decision day', which is a day to put on the trade. In the short term we use 2 orders: a buy stop and a sell-short stop. These orders are designed to put you in a trade in the correct direction a stock is moving. You are buying on a move up or selling short on a move down. The 2 lines represent the levels of these 2 orders and the values are shown in the table on the right. We call them "hash" lines.

Why are the yellow hash marks sometimes colored half blue or purple?

The color indicates if there is a higher probability one direction or another. Blue indicates 75% probability the price will move in direction of the color. For example, if the upper line is half blue then there is a 75% probability the price will move up. If the lower line is half blue then there is a 75% probability it will move down. Purple indicates a 90% probability. Tests have shown that the indicators are right over 80% of the time, but it has no bearing on the trade. You enter both orders according to the program. Even though the projection is 90% in one direction, there is still a 10% chance it can go the other way.

Why do I sometimes see a white vertical arrow and a vertical line connecting 2 small horizontal lines to the right of a short-term chart?

The arrow represents that had you taken the trade on the decision day (see above), you would be long if the arrow is pointing up or short if the arrow is pointing down. If you are long, a small yellow horizontal line indicates where you went long. If you are in profits a green vertical line will extend upward to a protective stop. The protective stop will be a small green horizontal line. If you are in a loss position, the vertical line will be red and a small red horizontal line identifies your protective stop. If you had gone short, the yellow horizontal line represents the level where you went short.

On the bottom right of the short term what does the green "Excellent 3.33" or the red "Loser 0.33" rectangle mean?

We rate every stock for its short-term trading characteristics. We have 4 types of ratings: green is "Excellent", blue is "Good", yellow is "Marginal" and red is "Loser". These ratings are a result of a mathematical measurement of how the stock has been performing. We use a ratio of the total dollars won divided by the total dollars lost. An excellent stock is a stock that makes at least 3 times as much as it loses. For example, over a 3 month period of time, if you had 5 wins at an average of $2 each and 2 losses at an average of $1.50 each, the ratio would be (5 x 2) / (2 x 1.5) or 3.33. This would be an excellent trading stock. If on the other hand, you had 2 wins at an average of $2 each and 3 losses at an average of $4 each, this would give a ratio of (2 x 2) / (3 x 4) = 0.33. This is giving you a losing performance.

Any ratio under 1 is a loser and a rating between 1 and 2 is marginal. A marginal stock is one that you can make money on, but it is too much work for little profit. A good rating is between 2 and 3. Your work is less and your profits are more. Since you have a choice, the best choice is to choose only excellent rated stocks. A displayed excellent rating of at least 3 means that had you swing traded this stock and taken every trade in the displayed time frame, you would have won at least $3 for every $1 lost. We like even higher ratios, but this will give you a group of great stocks to choose from.

These ratings are designed to identify a stock's current performance. Most stocks continue to perform the way they have been performing. These ratings do not guarantee that a stock will continue to perform this way. Market Timer by Best Choice Software always uses a defined protective stop to let your profits run and cut your losses short. The exclusive Best Choice ratings are based on the results of using these protective stops.

Why don't I see chart lines or prices on my chart?

We have set default colors for the chart background and lines or text that goes on that background. We have given the user the ability to change the colors of lines and text. If the user makes the lines or text the same color as the background, you will not be able to see them. For example, black text on a black background is invisible. In general, light text and lines on a black background or black lines or text on a white background is best.

Why is my Decision Day (DD) button grayed out?

The Decision Day button is only operable or enabled when you have a short-term chart opened.

On the short-term candlestick charts, the default for Choice is Aggressive. The other settings are All Trades, Average, and Conservative. I notice that when I select any of the other 3 settings, the values below it change. Please explain what all of this means?

All trades is the default and it shows every trade. Usually, the most profit occurs with this setting. The Aggressive, Average, and Conservative ratings restrict the risk levels of your trading. For example, if you click Conservative, the program will not show you a trade with over 5% risk of the value of the stock. Consequently, you are risking less but you are subjecting yourself to a higher probability of being whipsawed on both stops.

When you change settings, you change the entrance criteria for a trade. As a result, the summation of the trades is different. Particularly if you go too conservative many trades do not appear. When you change either entrance or exit conditions, you change how the program views the trades. The data box will show the instantaneous changes, but if you want to use the wizard to do searches based upon the new changes, you must re-index to apply the changes to all stocks.

Why do you have a 4-5 hour seminar following financial shows and is it necessary to understand the program?

The seminar is an in-depth study of the stock market designed to help traders and investors. It is open to both users and non-users. Most people who have attended have said that it was the best seminar on the stock market they have ever attended. We say, "we will take you from kindergarten to graduate school on the stock market". The first hour is normally on understanding long-term growth. The second hour is on understanding short-term swing trades. At this mid point in time, you will understand the criteria you want to use to find either great growth stocks or great swing trading stocks. Now that we know the criteria, we have to find the stocks that meet the criteria.

The remaining time is used to open the program and use the wizard. The wizard is our searching tool. We do some searches and show their results. We also show some of the other features of the Market Timer app and some of the special techniques that Sunny and Pete use. Finally, the accounting and the options segments of the program are explained.

It is not necessary to attend the seminar to understand the Market Timer app. We have a 2-½ hour tutorial that comes with Market Timer by Best Choice Software. It is suggested that you do attend to have a better understanding of the Market Timer app. Some people have come to seminars as many as 8 times and they say that each time they learn new things.

The reason why we do the seminars in conjunction with financial shows is that at our show booth there are a lot of people who get a little understanding of the Market Timer app and they want more. In order to fully explain market movement, it takes time.

What is the 25% quick profit method?

The 25% quick profit method is where you are looking for volatile stocks, with a good earnings and price growth rates that for some reason are at their low extremes (>10). The closer to 0% the better and you are looking for a bounce off the bottom. This is an opportunity to buy with little risk. You can set your sell stop just below the bottom, in case you are wrong. You are looking for a 25% rebound very quickly. A number of Market Timer users like this technique and you need the Market Timer app to be able to determine the extreme level of the stock.

Do I have to read multiple charts from your software in order to know what stock to choose, when to buy and exit? Or does it generate stock selection, buy & sell signals automatically?

No! This is why we built the wizard. First, you want to find the kinds of stocks you are looking for. The wizard does this for you (see wizard below). Then when you have the stocks, the short term portion of the program gives you the buy, sell and stop conditions.

Wizard Questions

What is the wizard?

The wizard is a searching tool within the Market Timer app to find stocks that meet your criteria. You can set price, volume, and short-term or long-term criteria to narrow your prospective stocks. There are more than 40 conditions from which to choose. Long-term conditions will be identified by (LT), short term condition by (ST) and some conditions as identified by (B), apply to both long and short term.

Why do the stocks that I have in one of my user lists not reflect the search criteria I used from the Wizard?

Possible reasons:

  1. If you changed stop settings, initial order entry conditions, filters, or ratings, you have changed the dynamics of calculating trades. This will affect the outcome and ratings.
  2. If you sort a list based upon its price gain, earnings gain, extreme %, win/loss ratio or any other criteria that is based upon a specific length of time, we use the default time frames to calculate it. If you then look at a different time frame than the default on the chart, the figures in the list will not match those in the data box.

    For example, I do a search for trading stocks with a win/loss ratio above 3. In my search, I create a list and I see a stock that has a ratio of 7. I pull up the 3-month chart of the stock and also see a 7. I now change the time to 6 months and I still see the list at 7 and only a rating of 4 in the data box for that stock. It's because the rating of 4 is based upon a different data set. The text box reflects data from the chart, while the list above reflects the wizard search. Generally, if you see an excellent rating stock over multiple different time frames, you can be more confident that this type of performance will continue.