Member documentation
Member Recommendations
Practical notes for using WealthVelocity risk lines, take-profit orders, and market commentary in a disciplined way.
These recommendations are educational and informational, shaped by decades of work refining this trading style and observing what has been effective. They are not personalized financial, investment, tax, or legal advice. WealthVelocity does not place trades, connect to brokers, or manage accounts.
Member bonus
U.S. Exchange members receive a quarterly compounder list.
This is a quiet bonus inside the member area, not a main strategy bucket. The list is designed for members who like the idea of finding favorite companies that may deserve a long-term place in a portfolio.
The model uses an enhanced Fama-French-style screen to look for mid-cap companies with strong sales, operating leverage, conservative investment behavior, and lower debt drag. Members can review the list quarterly and decide whether any name fits their own plan.
How To Treat It
- Use the list as research, not as an automatic buy instruction.
- Expect normal long-term ups and downs rather than weekly trade management.
- Keep position size, concentration, taxes, and personal risk rules separate from the list.
- Recheck the full member detail page when the quarterly update is posted.
Member bonus
The Capital Trap List explains the companies to avoid.
The Capital Trap list is the negative companion to the compounder bonus. Instead of looking for mid-cap companies with cleaner balance sheets, healthy sales behavior, and disciplined expansion, it looks for the opposite pattern: higher debt, expansion that may be outrunning the business, and weak or missing sales support.
The premise is simple: most companies do not become durable compounders. As a working risk assumption, WealthVelocity treats failure risk as the normal condition for weaker companies, with roughly 90% of businesses eventually failing under average conditions. A business with debt pressure, aggressive investment behavior, and inadequate sales can absorb capital without creating lasting value. WealthVelocity uses this bonus as a risk-awareness list, not as a command to short stocks or make automatic trades.
How To Treat It
- Use the list as an avoidance and due-diligence screen.
- Look for the combination of high debt, fast expansion, and weak sales evidence.
- Do not treat inclusion as a guarantee that a company will fail.
- Do not treat the list as a short-selling instruction.
Downside management
Risk lines are end-of-day review levels, not broker stop-loss orders.
WealthVelocity may publish suggested risk lines for positions or trade ideas. A risk line is not the same as a broker stop-loss order, and members should not place WealthVelocity risk lines as visible stop-loss orders at their broker.
Broker-side stop-loss orders may be visible to broker, order-routing, exchange, or market-making systems. Stop orders can also cluster around obvious technical levels. Those levels may become vulnerable to short-term intraday stop runs, which can stop out a position during ordinary market noise before the broader setup has actually failed.
Recommended Practice
- Do not enter WealthVelocity risk lines as broker-visible stop-loss orders.
- Treat the risk line as an end-of-day review level.
- Review the official closing price after the market closes.
- If the closing price reaches or breaks the risk line, reassess the position according to WealthVelocity guidance and your own trading plan.
- Avoid rushed decisions based only on temporary intraday price movement unless your personal strategy specifically requires intraday trading.
If the risk line is 42.50 and the stock trades down to 42.10 during the day but closes at 43.20, the risk line was not triggered under the WealthVelocity end-of-day method.
Profit management
Take-profit orders can harvest early overbought strength.
Overbought means a stock has moved up quickly enough that the short-term move may be stretched. This can happen when there is strong excitement, momentum, or extreme exuberance around the stock.
An overbought move does not always mean the stock is bad or that the larger trend is over. It means the first part of the move may have become strong enough to harvest some profit.
This is different from a risk line. A take-profit order may be placed with the broker because it is an order to sell into strength, not an order that exposes the downside risk level of the trade.
Sell half if the stock reaches 3% above the weekly opening price used for the trade.
If the first order did not fill, move the take-profit order to 6% above the original opening price.
Move the take-profit order once per week, not continuously during the trading day.
Take-Profit Practice
- Use only one take-profit order for the position.
- Set the take-profit order to sell half of the position.
- In the first week, set the take-profit price 3% above the opening price used when the trade was taken.
- If the take-profit order is not filled in the first week, move it up once for the second week.
- In the second week, move the take-profit price to 6% above the original opening price.
The purpose is to take advantage of early strength. If a stock rises 3% or more in the first week, that may show overbought conditions or unusual short-term enthusiasm. Selling half of the position locks in partial profit while leaving the other half available if the larger trend continues.
When a move is statistically abnormal in a way that benefits the trade, it can become an advantage worth capturing instead of only watching. Locking in part of that gain turns the unusual move into realized profit.
This can help the overall portfolio because realized gains can be recycled into another trade. Taking partial profit also reduces exposure in a volatile stock. If the stock moved quickly enough to reach the take-profit level, that move itself shows the stock has volatility.
If a trade is taken at a weekly opening price of 50.00, the first-week take-profit order for half of the position would be placed at 51.50. If it is not filled in the first week, the second-week take-profit level would be moved to 53.00.