There certainly isn’t a shortage of stock ideas out there. You can find new ideas almost anywhere you look — from TV personalities, to various websites, and newsletters, among a plethora of other sources. Picking out specific stocks to build a new portfolio can seem daunting, especially with so many choices out there.
That is where TradeSmith can help you. With TradeStops, you can view your newsletters and other stock ideas for analysis to build new portfolios.
Newsletters in TradeStops
In TradeStops, we have integrated with several publishers to make their newsletters available to you. We even recently added Ideas by TradeSmith as a publisher option.
If you subscribe to Ideas by TradeSmith, you will have access to this option immediately. Within, there are a number of various data sources you can choose from for further analysis. For example, you could analyze the S&P 500, Dividend Growing stocks, Sector Selects, and many more.
How Can I Use this Information to Build a Portfolio?
If we look at, say, the Sector Selects from the Ideas newsletter, we know that these stocks fit certain criteria within Ideas by TradeSmith. They need to come from sectors that are currently in the Stock State Indicator (SSI) Green Zone. And, we’d only initiate these trades if 7 of the 11 sector ETFs were in the SSI Green Zone. But, how would can we decide how many shares to buy?
One way to analyze positions is by adding the stocks as a Watch Portfolio. In the top left corner of the newsletter screen, there is a green “Add as Watch Portfolio” button.
From there, you could further review the stocks, set up alerts, and, if you’re subscribed to Ideas by TradeSmith, even see which strategies the stocks meet via the individual stock’s Position Card.
Once you find stocks that you like, you can head over to the Pure Quant tool to create a risk-balanced portfolio of the top performing stocks. You can use the drop-down menu to select a newsletter, including Ideas by TradeSmith, as your data source.
We’ll continue on with Sector Selects as our example.
Once you run the research, the Pure Quant tool can help determine the best risk-balanced position sizes for the stocks. Keep in mind that the Pure Quant tool will eliminate anything in the SSI Red Zone, trading at a loss since SSI Entry, and those stocks with an average Volatility Quotient (VQ) of more than 40%.
Below, you can see a partial list of results when we run Sector Selects through the Pure Quant tool.
From the screenshot, you can see that we’d be taking 1.44% risk per position for this portfolio. Our research has found that taking 1% to 2% risk per position is optimal. So, we’re in pretty good shape for this portfolio!
You can also save this portfolio as a Watch Portfolio if you aren’t quite ready to invest in these positions yet. Combining Newsletters and the Pure Quant tool is a great way to take a list of stock ideas and build a new portfolio based on technical analysis.
It’s easy to find stock ideas. What’s more difficult is homing in on hot sectors and industries, avoiding slumping ones, and zeroing in on great opportunities — be it a bull or bear market. On Tuesday, March 26, at 8 p.m. Eastern, TradeSmith and his team will discuss the techniques to do just that. You won’t want to miss this action-packed, informative webcast. Register now!
Did you know there are four words that help shape the way venture capitalists think? It’s true! And, you can take advantage of these four special words, too. Check out TradeSmith’s latest editorial to learn more.
Recently, Tom Meyer and Marina Stroud hosted a fantastic webinar. It covered everything from the SSI to our new 2 VQ alert. It’s packed full of fantastic information that can help you on your investing journey. If you missed it, or would like to watch it again, click here for the replay.
Investing in the markets can seem daunting at times. No one wants to make a wrong stock pick and lose money. But it doesn’t need to be scary or daunting. While we can’t guarantee that you’ll always make money, our tools can help you reduce your overall portfolio risk to mitigate loss while also un-limiting your potential gains.
As always, if you have any questions, please feel free to reach out to us at [email protected]. We’re always happy to help you.
Until next week,
TradeSmith Customer Success Team