Our mantra at TradeSmith is you’ll have the best chance for success if you invest only in stocks with an upward momentum that aren’t in the SSI Red Zone. That is far and away the safest strategy to stay out of trouble for the majority of investors. But we realize that for many investors, there are valid reasons to hold stocks in the SSI Red Zone. You might have low cost-basis stocks on which you don’t want to pay capital
Read nowThe healthcare sector has underperformed the rest of the stock market for most of this year … and particularly for the last six months. That could be changing soon … in a big way. The SSI chart on XLV, the ETF that tracks healthcare stocks from the S&P 500, tells the story … XLV literally started and ended 2016 right at $70 per share. It triggered an SSI entry signal in April … right at about $70 per share. Since
Read nowBack in June, we published one of our most important pieces of research of 2016 … how to crush the S&P 500 using just the S&P 500 … plus the TradeStops SSI system. The simple system we published back then beat the S&P 500 by 2 to 1 … and did so with less than half the risk! The team recently applied our more recent groundbreaking research to that study to see the impact. We weren’t disappointed. Trust us, you’re
Read nowLast week’s article on doubling up on your winners seems to have struck a chord. After reading it, longtime subscriber Joe M wrote in and said, Just so you know, as I was reading this, I said out loud, “YES!!” That reaction rarely happens…. Thanks Joe! Joe wasn’t the only one that had something to say about our recent research. Phillip D. wrote in asking for some clarification. Been reading TradeSmith’s recent articles with interest. One concern I have is that we
Read nowDoubling down on losing positions is a common strategy amongst average investors. The thinking is usually that buying more shares at a lower price will help get the position back to “break-even” faster. Thinking about “doubling down” got me wondering … is there ever a good time to double up on a winner? Developing a smart strategy for helping TradeStops subscribers add to their winning positions is a topic that has been on my mind for years now. Today, I have the
Read nowLast week we talked about Going Green … i.e., buying on strength when we see the Stock State Indicator (SSI) change from red to green … and not even waiting for a pullback. This week we’ve got some compelling examples of just how profitable “going green” can be. It’s every investor’s dream to buy a stock at its exact low and sell it at its exact high. But that’s all it is…. a dream. It might happen once or twice in your investing career,
Read nowOne of the biggest mistakes we see investors make is focusing too much on capturing the turn-points at market bottoms and tops. Yes, we all love to nail the bottom to the day and sell at the exact top, but as a long-term wealth building strategy, it just doesn’t work. We’re much better off capturing the meat in the middle. Today we’d like to share with you more about how you can leverage the SSI Trend indicator in TradeStops to help you
Read nowThis week the research team set out to investigate an interesting question. Is there a maximum trailing stop loss level that should be used across the board? We think that you’ll find the answer instructive. By now you are likely familiar with our Volatility Quotient (VQ). It’s the first number we look at when we’re interested in a new stock. It tells us immediately how much we should expect a stock to bounce around (up or down) due to market noise. It helps us
Read nowTo succeed in the market long-term, you have to make sound trading decisions – decisions based on facts, not feelings. But these five financial cognitive biases can cloud your judgment. Learn to recognize and avoid these biases to keep your trading impartial, logical, and smart. Attribution Bias It’s human instinct to want to take credit for our successes, and to want to distance ourselves from responsibility for failures. In other words, we want to believe that all successful trades must
Read now
