Finding stock ideas is the easy part. If we do a simple Google search of “stock ideas for June,” we’re met with over 353 million results.
The hard part is vetting those ideas to find the stocks that will work for you. What becomes even harder is building a portfolio of those ideas. Do you have the time to research 353 million stock ideas, choose the stocks you like, position size them, and build a portfolio? We’re guessing — probably not.
This is where TradeStops can help you. Today’s Insider Update is focused on a few tools that are exclusive to our Lifetime and Pro subscribers — but if you’d like to learn more about how to access these tools, you can contact our Customer Success team.
Our Billionaire’s Club contains the actual investments held by the gurus of finance — think Warren Buffett, Carl Icahn, David Einhorn, and many others. From there, our Pure Quant tool can vet those investments to build a fully risk-optimized portfolio.
Accessing and Using TradeStops Pure Quant
To get started building a new portfolio, go to your TradeStops Dashboard. In the upper action carousel, click the “Build a New Pure Quant Portfolio” button.
This brings you to the Pure Quant tool, and that’s where the fun begins!
First, you’ll need to select your data source. This tells our system which set of stocks to look at when building your new portfolio.
In the example above, you can see that we’ve already selected Chase Coleman. Tom Meyer, our Research and Education Specialist, covered Coleman in a previous Educational. You can access that fantastic article here. If we’d want to include any other billionaire — or even another newsletter — we would simply select that from this list.
In the next section, you’ll tell our system how much money you’d like to invest in the new portfolio and how many positions you’d like to have.
You can also choose to maximize for diversification. This filters the stocks from the data sources you’ve selected and finds results that are uncorrelated. This can help further minimize your overall portfolio risk.
Once you’ve made your selections, you’ll click the green Run Research button at the bottom of the page. Then, TradeStops will create a portfolio for you.
Now, the Pure Quant tool doesn’t just pick stocks at random. These investments need to meet specific criteria.
- Investments must be in the SSI Green Zone
- Investments cannot be trading at a loss since SSI Entry
- The Average VQ cannot be greater than 40%
- Average daily trading volume must be 100,000 shares or more
So, in our example, of all the investments from both Bill Ackman and Chase Coleman, 22 positions meet the criteria.
Remember, in our example, we only wanted to include 15 positions. The Pure Quant, as a result, has selected the first 15 stocks out of the 22 that met the requirements. You can always choose to include more positions by clicking the white boxes to the left of a ticker. You can remove any positions by un-checking them as well.
If you aren’t quite ready to make the investments the Pure Quant created, you can save this portfolio for later. Just click the green “Save as New Portfolio” button at the bottom of the page. This will save the results as a watch portfolio in the Portfolios section of TradeStops. You can come back to review it at any time.
Did you know there are other ways to research stocks and portfolios in TradeStops? It’s true! And, starting tomorrow, Marina Stroud will host some exciting webinars to show you all the research capabilities TradeStops has.
June 28, at 1 p.m. Eastern
In this training video, Marina Stroud will show you how you can review a new potential trade, its chart, possible exit strategies, and position sizing.
July 1, at 1 p.m. Eastern
In this training video, Marina Stroud will show you how you can review your portfolio asset allocation and overall portfolio volatility quotient.
July 5, at 1 p.m. Eastern
In this training video, Marina Stroud will show you how to build a new investment portfolio based on our algorithms and rebalance your portfolio(s) based on equal risk position sizing.
We hope you’ve enjoyed this week’s Insider Update. Our team loves writing to you and helping you find new ways to use TradeStops. With our system, you don’t need to scour through 353 million stock ideas. With the Billionaire’s Club, you can find stocks that have already been pre-vetted by financial powerhouses. Taking this a step further, Pure Quant can build you a portfolio that is optimized for risk.
As always, let us know if you have any questions. We love helping our TradeSmith family. You can reach us at [email protected].
Until next week,
TradeSmith Customer Success Team