Hello TradeSmith Family,
Have you heard of the coattail effect? It describes the impact an extremely popular (or unpopular) candidate has on other candidates of the same party in the same election. Take the 2016 election, for example. Following Donald Trump’s appointment, the GOP emerged with control over both the House and Senate (though they did later lose the House). In 2008, Barack Obama’s election helped his party pick up 21 seats in the House. His coattails even inspired large numbers of voters to register as Democrat.
The ability to ride someone’s coattails isn’t just limited to the political arena. It’s also possible for individuals just like you to ride the coattails of billionaire investors. How? At TradeSmith, we can show you the holdings of billionaire investors and even help you narrow down their picks to the best of the best.
Best of the Billionaires
TradeSmith currently tracks 26 billionaires, which could seem daunting if you’re attempting to wade through all their stocks and pick the best ones for you. That’s where Ideas by TradeSmith comes in to help.
Our Best of the Billionaires method looks to not only find those stocks that are performing well, but to highlight those that are also held by multiple billionaires. When more billionaires hold one stock, it’s said to have more conviction.
- When one billionaire owns a stock, that translates to a 55% win rate.
- If a stock is owned by two billionaires, the win rate goes up to 60%.
- With three billionaires, it goes to 65%!
To find the Best of the Billionaires method, go to TradeSmith’s Lab and select Best of the Billionaires. From there, we’ll list the top Best of the Billionaires stocks. We sort the results based on the number of billionaires who hold the position.
You can see more about the individual positions by clicking the ticker. You can also click the hyperlinked numbers on this page to see more information. For example, if we clicked the 9 for MSFT in the screenshot above, we would see the names of the nine billionaires who hold Microsoft stock.
Let’s say, though, that you’d like to save the top results. If you have a TradeStops account, you’re in luck! You can move positions from Ideas over to TradeStops. This will let you further track these investments and even add alerts.
In the screenshot above, you’ll notice the small white boxes to the left of each ticker. If you click these, an action box will appear at the bottom of the screen. This will let you add the positions to a new TradeStops portfolio or an existing manual portfolio.
In the example above, we selected the New Portfolio option. All we had to do was give the portfolio a name and click the blue Add button. Now, the BoB Portfolio will appear in TradeStops.
TradeStops and Best of the Billionaires
As we click over to our TradeStops screen, we’ll find the BoB portfolio on the Watch Only tab in TradeStops.
You’ll notice that this portfolio doesn’t have any alerts yet. If we want to track the positions (say we’re considering buying them later), we’d want to set up some alerts.
The easiest way to add alerts is from the Positions page. You’d simply select the positions that need an alert and click the add alert button at the bottom of the screen.
This option lets you add the TradeStops default alerts and any templated alerts that you’ve created.
If you’re looking to add more specific alerts — let’s say a time alert for this example — you could do this from the Position Card Page. Simply click one of the tickers. Then, click the Alerts tab and click the green Add Alert button. From there, you’d select the alerts you’d like to include.
In the example above, we’d be alerted three days after our Entry Date. In the case of a watch portfolio where you don’t actually own the position, the Entry Date will be based on the date that you added the portfolio to TradeStops.
There’s a lot to learn with our systems, but we’re here to help you. Our Product Education Specialist, Marina Stroud, has created multiple webinars on how to use the tools in our systems.
Below are the comprehensive Getting Started guides:
Both of these webinars are packed with lots of useful information, so make sure to have your notebook ready. We’re sure you’ll learn a lot!
Further on the educational front, make sure to check out the Educational material from Tom Meyer, our Product Education and Research Specialist. Every other week, Tom covers fantastic, innovative ways to put TradeStops to work for you. It’s not something to be missed!
Riding the coattails of success doesn’t need to be limited to just Republican or Democratic political figures. You can ride the coattails of successful billionaires. The best part is you don’t have to do the hard work. TradeSmith does that part for you. We comb through billionaire holdings to find those positions with the most potential for success.
From there, we arm you with the tools to follow the positions and even ride them to new profit potentials. And, you can do all of that in less than 15 minutes, right from your computer. Compare that to the hours or days of research that billionaire investors do; you can’t beat it!
As always, if you have any questions, please feel free to let us know. We’re always happy to help our customers succeed when using our products. You can reach us at [email protected].
Go ride the coattails of success,
TradeSmith Customer Success Team