Winning in the markets isn’t easy. Otherwise, everyone would do it. Losses aren’t fun; no one can deny that. That’s why there’s so many articles out there about investing tips, tricks, and techniques so that you might succeed.
An article from Investopedia show us 10 Tips for Successful Investing. Today, we’ll show you how you can apply our programs to some of these tips. And, while their article is focused on stocks, you can apply our techniques to cryptocurrencies too.
Riding a Winner
This seems simple, but as our gains get bigger, our emotional connection to those gains tapers off. Here’s a chart to show what we mean.
However, as losses occur, we hold a strong emotional connection to them. We have a stronger connection to our losers because those hurt more. With our winners, we can simply exit the trade and take the win. But — this can potentially limit our gains.
With TradeStops, the Stock State Indicators can help keep you in a trade longer. Take Seabridge Gold, SA. This stock has been up and down in the market. And, for some, taking a small win would have been good enough to then exit the trade. Looking at the current value of the trade, though, how much could we have made? If we look at the performance of the stock, we’d see it’s still in the SSI Green Zone and has been since December 2015.
You can read more about the SSI alerts here. The SSI can be a great way to let your winners run longer.
Selling a Loser & Sticking to a Strategy
As we mentioned in the value chart, we tend to have a stronger emotional connection to our losers. Many investors at some point have added to their losers, hoping that the trade would increase. Often, though, this doesn’t work out, making losses even worse.
This is where TradeStops and Crypto by TradeSmith can help. Both programs offer a large array of alerts. These alerts can act as your stop loss strategy. That way, the exit point is defined by calculation. There is no emotion. There is no guesswork.
You can read more about our available alerts at the links below.
If you commit to following an exit strategy, it can help you mitigate your losses.
Don’t Chase a Hot Tip
You might hear a hot stock tip from your friend or on the news. You might read about it on the internet. Rushing blindly into a trade based on one tip probably isn’t the best idea. The temptation can be exciting, especially if the investment is predicted to jump in price quickly.
Pause. Take a break and do some quick research on the investment.
Ideas by TradeSmith can help you learn more about the investment. Let’s pretend that you read Nathan’s Famous (NATH) was a good idea. Even though the stock is down, NATH is predicted to trend up in value.
If we search for NATH in Ideas by TradeSmith, we’ll find it’s in the SSI red zone, has medium risk, and does not meet any of Dr. Smith’s strategy criteria. It also doesn’t appear in any of our newsletters.
Based on the findings, Nathan’s might not be the best investment right now if you follow the SSI or any of Dr. Smith’s strategies.
Speaking of Ideas by TradeSmith, our Education Specialist, Marina Stroud, recently held a comprehensive webinar on the program. If you missed it, that’s OK. You can watch the replay here.
A few weeks ago, we asked our users to complete a survey on TradeStops usability and its features. We had more than 1,000 responses. Thank you so much to everyone who participated. And, as promised, we selected a random winner for a $1,000 TradeSmith prize. He has asked to remain anonymous but be on the lookout for future surveys. You could be our next winner.
If you were able to join us for the exciting Bull vs. Bear Summit, you may have received our special report that detailed some really important positions and indicators and how TradeStops can help you navigate any market condition. We had a great response, and a lot of you asked for an update with current trends. Well, we listened, and our research team is hard at work refreshing that report. We will send it to your inbox as soon as it’s ready. Stay tuned!
Until Next Time
We know that this Insider Update was a little different than normal. We didn’t have any product updates, but we did show you unique ways you can apply our products. Remember, successful investing is about mitigating your losses and letting your winners run. Our TradeSmith suite of programs can help you do that.
And, as always, if you have any questions, please let us know. We’re always happy to help you, and we can be reached at [email protected].
TradeSmith Customer Success Team