If you're not making money with VectorVest, you have to read this essay. I'm going to describe a simple investment procedure that is virtually certain to result in profits. There are no tricks, no gimmicks and no brain benders, just a simple procedure that anyone can follow.

Let's assume you're looking at the VectorVest Home Page on any given day. Here's what to do:

1. CHECK THE COLOR GUARD. If the Daily Color Guard shows Green and/or Yellow lights and the Primary Wave is Up, it's OK to buy high VST, 'B' rated stocks. Do not buy any stocks if any Red lights are shown. Read the "Prudent" section of the Strategy shown on the Home Page for further guidance.

2. SELECT HIGH VST-VECTOR, 'B' RATED STOCKS. The top five VST stocks are shown on the Home Page. You may access Stock Viewer for more selections if you wish. Read my essay of 12/03/04, "VectorVest Simple," for tips on cherry-picking top VST-Vector stocks.

3. ENTER THE TRADES. To start out with, I suggest you buy at least ten stocks and buy your stock selections only when the market is moving up and the stock is also moving up. I usually check to see what my selections are doing shortly after the market opens, but I'll generally wait until 10:30 EST before making my trades. Incidentally, you may buy your stocks all on the same day or you could spread your purchases out over several days. It doesn't make much difference.

4. USE PORTFOLIO MANAGER. Portfolio Manager makes it easy to track your gains and losses and to decide how and when to sell a stock.
I usually use a 10% Stop-Loss to exit a position. Remember to replace the stocks you sell according to the steps shown above.

5. GO INTO CASH WHEN WE GET A C/DN SIGNAL. Stay in cash until the Primary Wave turns to Up. Go to Step 1.

To get an idea of how well this procedure works, you may go to the beginning of any upwave over the last ten years and perform Quick Tests from any day during the upwave to the C/Dn signal. Of course the gains are largest if the Quick Tests are run from the beginning of an upwave. That's why we work so hard to prepare you for an impending upwave like we did on November 23rd. The top ten VST stocks are up 8.92% from 11/28/07, the day the Primary turned up, to yesterday's close an annualized rate of return of 407%. We had nine winners and one loser.

It's easy to see why this procedure works so well: you're picking rising stocks in rising markets. So take the time to learn all about it. It can make money for you, over and over again. That's why I call it The VectorVest Money Machine.

P.S. Please visit the VectorVest University to see Mr. Glenn Tompkins' impressive illustration of this week's "Strategy of the Week." It's called, "How to Use the Money Machine."