Tom Meyer: Hello, everyone, and welcome to TradeStops. My name is Tom Meyer, and I’m pleased to be joined today by Naresh Vissa, who’s our director of special events. Good afternoon, Naresh.
Naresh Vissa: Hey, Tom. Good to be back on for another awesome training session.
Tom: We are so fortunate at TradeStops. We’re very excited to have welcomed literally thousands of new TradeStops members in just the past two weeks. Now, this has created a backlog with our customer success team. We have received literally thousands of emails and calls looking for some assistance.
We’re working our way through all of these, and we appreciate your patience. Hopefully, today’s presentation will answer many of your questions and help you on your way to using the TradeStops site effectively and easily. We are planning more training webinars this week and in the upcoming weeks, and you’ll continue to see the emails about these.
TradeStops is the one tool that can help you become a more successful investor from the very first time you log in.
Dr. Smith and his team have spent years analyzing the risks of individual stocks and portfolios, and our TradeStops members are the beneficiaries of this research.
We are recording the presentation today, and we’ll send you a link to the recording either later today or early tomorrow morning. If there’s something you don’t understand, you’ll be able to review the presentation at your convenience.
Naresh, we actually go through our slides and our presentation relatively quickly, because we have a lot of information that we’re trying to disseminate and get to our users. I know that we’ve had some comments that it seems as if we’re going too quickly, but that is the reason that we record these webinars, so people can then watch them at their convenience, pause them during a certain part.
They can actually go in, maybe create some watch lists and do what we do, and get used to using the website that way. You get a chance to listen to a slide, but you’ll also be able to get a chance to listen to us and look and see how we do things on the recordings which will be available to you.
We do have members of our customer success team answering your questions during the webinar. We will also answer some of your questions at the end of the presentation. Hopefully, the webinar today will be a little shorter, but it is more focused.
We encourage you to ask questions. There is a question box on your screen and you can ask those questions there.
We have Gail, Haidee, and Brian answering the questions today so you’ve got the TradeStops all‑star team working for you.
Today, Naresh, our focus is going to be on the TradeStops alerts. The variety of alerts available on TradeStops allows each member to customize TradeStops to receive exactly what they need and want to best manage their stocks and portfolios. We’ll also touch on a couple of alerts for option traders at the end of the presentation.
Before we get started, Naresh, most people think TradeStops and then they automatically think trailing stops, but there are so much more available on the TradeStops site. As an investor, what kinds of notifications are important to you?
Naresh: I’ll tell you, Tom, I love the SSI red light, green light notifications I get from TradeStops because I don’t have to monitor my stocks every day. I don’t have to login to my portfolio, see how they’re doing. I get an email notification sent directly to my email address that says, “Hey, so and so company that you own is now in the green.”
Really, it’s actually, mostly, “So and so company that you own is now in the yellow.” That gives me a trigger that says, “OK, I need to start monitoring this stock and think about selling it.” Sometimes it’s a red, then I definitely know, “OK. I need to sell it within the next couple of days for sure.”
I find that to be the most beneficial, but I know there are all sorts of alerts and notifications available in TradeStops I may not even know about. That’s why I’m excited about this session today.
Tom: One of the questions we had earlier was asking if we were going to do a webinar on the SSI itself. The SSI is a combination of VQ. It’s a combination of alerts and portfolio management. Yes, we will be doing a webinar sometime in the future, in the very near future about the SSI.
One of the things, Naresh, that I think is so difficult for individual investors today is that there is so much information that’s available. There’s no way for most investors to know which is good information and which is bad information. This is the opposite of what investors face 30 or 40 years ago because 30 or 40 years ago, all of the information was only available to the big brokerage firms.
The individuals had no way to get this information. They were stuck. They were at the end of the line. They were the last ones to know.
Now, everybody has the same information at the same time. It’s like the old saying, “You’re trying to drink out of a fire hose.” With the TradeStops alerts, you can effectively shut out the noise and focus only on the signals themselves. That’s something that Dr. Smith talks about a lot, is focusing only on the signals and not the noise.
Today, we’re going to take a few minutes. We’re going to look at the different types of alerts that are available on TradeStops. We’re going to show you how to set up the alerts. We’re going to show you how you can control the alert notification. We’re going to also show you the most underutilized tool in TradeStops. Let’s get going.
When people think of alerts, they think of exit alert. That’s the first thing. Trailing stops, when am I going to get out of a stock? We’re going to focus on showing you how to set up some different types of alerts within TradeStops.
We’re going to look at the trailing stops, which include a VQ stop, which include an SSI stop. It also includes a fixed percentage. A lot of people haven’t seen that alert. We’re also going to show you how to do a fixed price exit alert. Let’s go ahead and go to the website and get started on those.
When you go to the TradeStops website, this is the first thing you see. This is your tradeStops.com page. You click on Log In. I’ve already set this up so that we automatically log in. Just click on that. Your username and password will normally come up.
Naresh, remind me to log out at the end of this presentation so I can show people where the webinars are, OK?
Naresh: Yes, definitely. That’s very important.
Tom: Let’s go ahead and look at exit alerts. For those who have attended our last couple of webinars, you’ll know that I’ve got some example portfolios that have all been set up here. Let’s go ahead and go to our blue chips stock portfolio.
Before the presentation, I removed all of the alerts so that we’re starting with, essentially, with a blank slate right now. The first thing that we’re going to look at is we’re going to look at setting up a VQ alert.
I’m on the Positions and Alerts tab up at the top. We’re at the Positions. Now I want to go to Alerts. Click on that tab. Since the portfolio has no alerts, we’re going to add an alert, which can be done either in this green box or this green box. It’s the same.
I want to set up a VQ alert, a VQ stop on Apple. I’m going to choose my position on Apple. Go ahead and click Next. This opens up into the Alerts tab of the stock position card. Here are all the different types of alerts. We’re going to actually touch on all of these a little bit later within the webinar.
We’re going to touch all those tabs. Right now, we want a trailing stop alert, and we want to use the VQ, which on Apple is 17.28 percent. The default is to set up this VQ alert from the start date. I don’t want that from start date. I want to set it up from today’s date.
We click on the little pencil icon. The box opens up, and I’m just going to forward to June 7th, 2017. There we go. I click on Add Alert. You can see, I’ve set up a VQ trailing stop alert. When we go to our Positions and Alerts, when we re‑open this, it’s on the Alerts tab.
This tells us that we have a VQ trailing stop on Apple. The trigger price is $127.76. Right now, the stock at yesterday’s close of $154.45 is zero percent below the highest close. It shows our stop price as $127.76. That’s how easy it is to set up a VQ alert.
Let’s go back to our Positions page. You’ll notice here that this bell is now filled in. Every other position has that little line through it that shows there’re no alerts. If I mouse over, you can see it says, “Position without alerts.” When I mouse over here, it says, “One alert created.”
Let’s create an SSI alert for Caterpillar. We click on Caterpillar. We’re going to do pretty much the same thing. Get to the alerts here. You’ll notice, no alert set up, so let’s add the alert. Here is the SSI, the stock state indicator alert. The SSI alert can act as five different alerts.
We’re not going to get too deep into this because we will save this for the other webinar. Each SSI alert can be worked as five different alerts to tell you when a new entry signal has occurred, when a stop signal has occurred, and when the stock has moved into the yellow zone, which is a little bit more than halfway between the most recent high and the stop.
Let’s go ahead and click on Add Alert. You’ll notice we have our stock state indicator alert. Go back to Positions and Alerts, and go back to our Alerts page. You’ll see that here we are on Caterpillar, it’s in the SSI green zone. Our trigger price right now, our SSI stop is $85.58. We’ve got an alert set up for Caterpillar now.
Let’s go back to our positions. Let’s look at Franco‑Nevada. Franco‑Nevada has a 30.7 percent VQ. That’s considered a high risk stock. Let’s say that we want to set up an alert that’s 25 percent. We just want a fixed percentage of 25 percent.
Let’s click on our Add Alerts. We went to the Alert tab, Add Alert. We’re going to choose FNV. It’s going to open up. Remember, we set the VQ trailing stop on Apple. Let’s do a custom now, customized. We’re going to customize. We’ll do the 25 percent. We can change this if we’d like.
Since I just put that stock into the portfolio, we’ll do it from yesterday’s date. Click Add Alert. Now, we have a 25 percent trailing stop set for FNV. Click on our Positions and Alerts, we’re still in the Alerts tab. You can see FNV, right now it’s 2.6 percent below its highest close. The trigger price of the 25 percent trailing stop is $55.60.
If Franco‑Nevada continues to move higher as it has, and we’ve had a nice gold rally, then this stop price, this trigger price will move higher as the price on Franco‑Nevada moves higher. For instance, if the price on FNV gets up to 80, then we’d be looking at a trigger price of $60, would be our 25 percent trailing stop.
One more that a lot of folks haven’t seen. Let’s add an alert. This time, I want a fixed price alert. Let me show you the reason why. Let’s take a look at Netflix. Netflix, we got into it in August of 2016 at $95 a share. Stock closed yesterday at $165.
The stock has very close to 30 percent volatility quotient. I don’t know that I’m willing to lose 30 percent. That would take away so much of my profit. What I think that I want to do is I want to set an exit price of, say, $135. Let’s go ahead and do that.
We go to our Alerts. We’re going to add an alert. Add the alert for Netflix. This time, I want a price alert. I can use either a fixed price above or below. If the stock closes below $135.01, I’ll get notified.
This is an alert that a lot of people, Naresh, are not familiar with. You can actually set up a fixed price alert. Right now, our trigger price is $135.01. We’re still $30.17 away, but we know we’ve got this in place now.
Those are some of our exit alerts that are available to us. Let’s go back to our presentation. Naresh, did you know that there’s entry alerts that you can set? Most of us are familiar with the SSI alert. Let me show you how we can get that set up. Let’s go back to the website and go back to our Positions page.
Take a look at Coca‑Cola. We stopped out in November of 2016. Let’s click on it. Look at the chart on this. For those who are new to TradeStops, to trigger an SSI entry signal, you have to have two things happen. The stock has to be at least one VQ above the most recent low and the trend line has to be moving higher by a certain angle.
Let’s take a look here. Our most recent low on this stock was probably in December, a $39.82. The stock right now is trading just under $46. It’s definitely more than one VQ above. We’re just going to wait here now for the actual trend line to start moving at a higher angle.
Let’s click on the Alert tab, let’s click on the SSI Alert. Once Coke triggers the SSI entry signal, I want to know about it. We just click on Add Alert, we’re going to back to our Positions and Alerts page. Go back to our alerts.
Here we go, Coca‑Cola, stock state indicator, our last trigger was $40.48. It’s $45.98 right now. Whenever that trend line gets to a high enough position, we’re going to be alerted that Coca‑Cola has triggered its entry price.
Let’s take a look at another position that’s in the red zone right now. This is Schlumberger that just stopped out last week or maybe a couple of weeks ago. If we take a look at this stock…Wow. Here’s a stock. The high was back in January at $86. The stock is trading in about $70. Let’s say that I want to know when Schlumberger has moved up a little bit more.
Let’s go to our Alerts tab. Let’s go ahead to add alert. In this case, let’s look at a price alert. I want to know when Schlumberger is going to close 15 percent above the entry price. We can add that alert. Really quickly, there’s another good one.
What if we want to see Schlumberger when it’s closed at a new, let’s say, three‑month high? We could set this as day, week, but I want to know when it closes at a three‑month high. Click Add Alert, let’ go back to our Positions and Alerts, go to our Alerts tab, and you’ll see Schlumberger.
Now, we have 15 percent above. This was assuming that our entry price was $69.97. I’ll be notified when it gets to $80.47, when it closes above that. I’ll also be notified when we get to a three‑month high. Right now, it’s 87.82 percent.
That means we’re more than 12 percent below the three‑month high of $79.68. We’ll get notified when that occurs. Really some cool entry signal alerts that you can set up. One more, let’s set up an alert on WPM, which is Wheaton Precious Metals. That’s the old Silver Wheaton.
Naresh: I also want to mention, Tom, before you move on to Wheaton. These alerts in and of themselves are reasons. They just separate TradeStops from all the other Yahoo Finances, MarketWatches.
You get these alerts delivered to your email. This is a huge benefit to spend a few minutes setting up these alerts, and then you can just sit back and let TradeStops do all the work.
Tom: For those who might have missed our first webinar last week, our training webinar, we’ll show you where that is on the website when we’re finished because we discussed that ‑‑ how do you log in and set up all the alerts.
We’re not going to take the time on that. Let’s look at a price alert on Silver Wheaton. Let’s say, we want to know when Silver Wheaton, which is…Right now, let’s go back to the Position Details. It closed at $20.85. Let’s say I want to know when it’s maybe in this $22‑range.
Go to Alerts. We’re going to add an alert. We’re going to add a price alert. I want to know when Silver Wheaton closes above $22.25. Add Alert. Just that simple, Naresh. Now, let’s go ahead and look at our alerts.
You can see WPM. Latest close is $20.85. We want to know when it’s $22.25 and we’ll get that alert when that price happens. I don’t have to be locked to my monitor on a day‑by‑day basis and an hour‑by‑hour basis. If I want to go out and play golf, or if I want to go on a trip with my wife or hang out with kids or grandkids, I’m not locked to the computer seven or eight hours a day.
That’s how easy TradeStops makes it for people. Let’s go back to our PowerPoint. We’ve looked at a couple of exit alerts and entry alerts. Now, let’s have some fun with some situational alerts. There are price alerts as you saw, time alerts, volume and moving average alerts.
There are also alerts based on the fundamentals of the stocks. Let’s go back to our website and look at that. Let’s go back to our Position page. We’re going to look at some situational alerts. The first one we’re going to look at is we’re going to look at a price alert on GE. Now, GE closed at $27.93.
It’s got a 13.75 percent volatility quotient. We don’t have any alerts set up. Let’s say that we want to do a price alert, and we’re going to do a percentage alert. We’ll do another percentage alert. Let’s say that I want to be alerted when GE closes 12 percent below the entry price.
Really simple. Add the alert, and it’s done.
Go back to our Positions and Alerts page, click on Alerts. GE closed 12 percent below the entry price. That would trigger $20.45. I’m just playing around with these. I highly recommend that our listeners and our TradeStops members set up a few watch portfolios, add some positions, and start playing around with these different alerts so you can find the alerts that work best for you.
For many of our members, the SSI alerts are going to be good enough to handle 95 percent of the situations. For some of our members who like to be a little more active, you can customize these to get the information that you want and the signals you want. You don’t have to listen to the noise.
Let’s look at another alert. Let’s add a time alert for Apple. We already have that VQ trailing stop that we just put in place. Let’s click on time. You can get an alert for a specific date, how many calendar days after you entered a stock, how many trading days after you entered a stock.
Let’s look at a stock. I want to know when I’ve had five profitable closes after entry. That means the stock has continued to move higher. We’ll go ahead and click Add Alert, go back to our Positions and Alerts. Again, we’re on the Alerts tab and on Apple.
We’ve had 195 profitable closes since I entered the position. You can see that this bell is now purple, which shows that the alert has been triggered. This is a position I’ve held for a long time, so that’s not surprising.
Maybe if you get into a new position, and let’s say you’re buying Apple for the first time today, or you’re buying XYZ ‑‑ it doesn’t really matter what that is ‑‑ then you can go ahead and set up an alert like this.
I want to know when I’ve had one profitable close, 10 profitable closes since I bought the stock. We’ll send you that alert. Now, let’s look at another one of the situational alerts. This is something I really like, Naresh. This is one I get excited about.
Naresh: Yeah, and this one. This one’s good.
Tom: I’m going to set this up for JPMorgan. This is going to be one of the volume and moving average alerts. Under the volume and moving average, we can set up an alert based on if the stock is trading above its average volume, below its average volume, which can be a breakout situation.
You can have it set if it’s trading above or below a moving average. I love the moving average crosses. Many of the investors, short‑term traders, swing traders, they love these moving average crosses.
For JPMorgan, I want to know when the 20‑day moving average is two percent above the 50‑day moving average. Add Alert. Let’s go check this one out, Naresh. Go back to our Positions and Alerts. We’re on the Alerts. Here’s our JPMorgan alert.
We have a 20‑day average is $85.03. The 50‑day moving average is $86, so the 20‑day average right now is 1.12 percent below the 50‑day moving average. If JPMorgan gets a little boost higher, then this 20/50‑day moving average is going to get triggered. For longer‑term investors, if you want to do a 50‑day over a 200‑day, etc., etc., you can do any of those.
When the short‑term moves above the long‑term moving average, those are called golden cross situations. When the short‑term average moves below the long‑term average, those are called death cross situations. Like anything else on Wall Street, nothing is perfect but a lot of people like to know when those conditions have occurred.
One last of the situational alerts, let’s look at the fundamental alerts. We don’t do a lot of work with fundamentals here at TradeStops. Everything that we do is algorithmically‑based, and we don’t use the fundamentals for that. That doesn’t mean that you can’t follow a large number of fundamentals on TradeStops.
Let’s look at Apple again. We’re going to add an alert. Here, I’m going to scroll down and look at the fundamental alert. We can set up alerts by market cap, enterprise, values, etc., etc. You can see all of these.
Naresh, I want to know when the PE for Apple moves above $20. I don’t know if 20 is a magic number for Apple but a $20 PE would seem like it would be trading at a very high PE. This way, I don’t have to do all the math. I just add the alert, go look at my Positions and Alerts on Apple.
PE right now is $17.94. Once the PE gets above $20, I’m going to be notified. I might be able to make a decision on Apple, tighten my stop, or maybe even to get out, if it’s priced at higher than what I’d like.
This is a good way that you’ve gotten an overview now of the different types of alerts that are available. Let’s go to our next page and show you some of the additional alerts. You can get alerts for dividends, for corporate actions when the VQ changes and even a high watermark on the stock.
What we mean by high watermark is the highest profit since you’ve owned the stock. Let’s go ahead and go back to our website, and we’re going to go all the way over to the upper right‑hand side where it says lifetime member or whatever your level of TradeStops membership, and let’s go to settings.
We click on Alerts. If you’re synchronizing your portfolio, do you want to automatically create alerts for the stocks? You can choose yes or no, and then you can choose which of the alerts you’d like.
SSI alert is the default, and there are some other things that we can do to set up. We’re going to show you that in a moment. Most people like to default to the SSIM. That’s where I default. I think that that makes the most sense.
Do you want to create alerts for options? If you’re playing with naked options, you might want to know what a trailing stop is. Is it a 25 percent below what your entry price is, etc.? Again, you can set that up. You can customize that if you’d like.
How many consecutive alerts do you want to see? If I had had five profitable closes on Apple, it would have gone low, was it 190, 195 alerts? I don’t want that many alerts. I want to get rid of them after one.
Do I want to remove the triggered alerts? I say yes, but some people are going to want this is no. We actually default to no, because that way it forces you to go in and monitor your alerts.
Do you want to be notified when your stocks go ex‑dividend? I think most people do. Do you want to be notified when the VQ changes? You’ll get a weekly email with all of your positions and the changes.
Do you want to be notified when you have a new high profit in the position? That’s what we mean by the high water mark? Do you want your prices for the stocks, and funds adjusted for dividends, and spin offs, or stock splits? You make your own choice, click Save, and there you go, that’s how we do that.
Now, Naresh, the most underutilized tool in TradeStops are the templates. You can set up any of these alerts that we have gone over and have that available, and customized it so that you can access that quickly. What if you like that golden cross idea? Let’s click on our Lifetime here. Let’s go to Templates.
Well, right now, I don’t have any templates set up. I just have the default, SSI, VQ trailing stops, and then 25, 20 and 15. Let’s go ahead and click on Add Template. You’ll notice this opens up and it looks almost exactly like the alerts page that we looked at earlier.
Let’s go ahead and set up a golden cross. Let’s look at volume and moving average. We’re going to do a moving average cross. I want to know when the 50‑day moving average is two percent above the 200‑day moving average. There we go. Now, let’s call it golden cross.
I can make this the default for stocks that come in, but I don’t want to right now. Here we go. Look our templates now have set up the golden cross based on that 50‑day moving above the 200‑day. Let’s go look at stock to apply that to. Let’s go back to our blue chips stock portfolio and go back to our positions.
Let’s look at Schlumberger again. Go ahead and click on that. Of course, we know that we can set up the alert this way. We can also go apply alert template, golden cross. I didn’t have to fill in any of the blanks, just click on it that way.
What if I want to add a position to this portfolio? Let’s go back to Positions and Alerts. Let’s click on Add a Position. Let’s just add Target. It doesn’t matter. This is only for an example. We’ll use today’s date. Yesterday’s close, 100 shares. Now look at templates. The default is stocks date indicator, but I should be able to add…I may not be able to go down here.
Well, that’s the alert that’s set up. We could use that template going in and get the golden cross. We’ll just go ahead, and save that, and close it. That’s how we set that up. It’s easy to set up the templates that you want to be notified of, and have that be your default on stocks that come in to your portfolio.
Now one last thing, Naresh, before we go to any questions, we had said yesterday that we would talk a little bit about some options, and some alerts within options. I created a couple of positions for an example. The first thing we’re going to look at is a covered call on Netflix.
Theoretically, we entered Netflix about a month and a half ago, $142.87. The stock has climbed dramatically. I’m thinking, “All right. At the beginning of June, the stock had moved much higher, I want to do a covered call, and I sold it July 170s for $5.05.”
Effectively, knocking my entry price down, and would I be willing to sell the stock at $170 and after having owned it for a couple of months? Yeah, maybe I would. Let me show you how you can set up a covered call alert. Go ahead for Alerts. We’re going to add an alert. In this case, we’re going to add the alert for the Netflix option itself.
Now, you’ll notice, Naresh, that something opened up that we didn’t have before and that’s the option cost basis. All of the other alerts that we were using dealt with stocks. Now, we’re going to look at this option cost basis alert and this is a covered call cost basis.
I want to know when the stock closes. Now, we’re looking at a close to a 30 percent VQ on this stock, but I think I’m only willing to take another 15 percent risk below the cost basis. Remember I bought that stock for $142.87. Click on Add Alert, let’s go back to our Positions and Alerts, and you’ll see how this shows up.
The latest close of $165.17 on Netflix is 19.84 percent above the $137.82 cost basis. That was derived from the entry price of the option, what I received in premium subtracted from my cost of the stock. This is not going to give me a trigger when the stock price closes 15 percent below the $137.82.
This is powerful. We have a lot of members that use covered calls for income. They also use naked puts. Let’s look at how that’s going to work. I’ve been following NVIDIA and let’s assume that on July 1st, we sold a 140 naked put, and we want to know what we should look at, as far as when to get out of that position essentially if the stock is put to us.
We’re going to go into the NVIDIA put. We’re going to add this alert. Again, we go to our option cost basis. Now, you’ll notice we can’t do the covered call, because this isn’t a covered call. This is only available for short calls. This is a naked put.
I want to know when the stock price closes. We’ll leave it at the default, 25 percent below the cost basis. Now, what is the cost basis? The costs basis is the strike price less the option premium. We can go into our Positions and Alerts page and see that, the close of the price 25 percent below the cost basis.
Now the cost basis on the stock with $134.78 and that is the amount of premium we received, subtracted from the $140 strike price. $134.78 would be our cost basis if the stock were put to us, and this alert will tell us if the stock closes 25 percent below that.
Again, we don’t have time to get into a lot of examples on these, but that’s how we do the covered call alerts as well as the naked put alerts.
One thing that I’d like everyone to see, Naresh, believe it or not, I actually remembered on my own. I’m going to log out. On the TradeStops home page, the log in page. Before you go anywhere, you can click on webinars. Show you our upcoming webinars, “Alerts 101.” Hey, that’s what we’re doing now.
Naresh: If you can just, Tom, go again, point that mouse to the top tab that says Webinars. You just point that. That’s where you can find all these training sessions that we’re doing, previous webinar, and training sessions that we’ve done. That webinars tab is static, so you can just click that and you’ll be able to see all the education and training that you need.
Tom: Scroll down a little bit and here’s our educational presentation from last week, “Getting Started with TradeStops.” It’s a 10‑step process from logging in, to synchronizing portfolio, etc. It’s like the cliff notes for TradeStops.
Yesterday, we talked about the VQ and did a deep dive within the VQ, the volatility quotient, which is at the heart of everything we do at TradeStops. On this page, we’ll post the recording of today’s webinar. If you wait a few hours, you don’t even have to necessarily wait for the email. You’ll be able to see when it’s posted.
All of the presentations, we’re going to be doing more presentations over the next several weeks, and all of these are going to be available in the Webinars’ tab. I’m going to go ahead and get back logged in. What sort of questions our folks asking today, Naresh?
Naresh: Well, I just want to confirm and reiterate. We set up all these alerts, how are people going to get these alerts?
Tom: Remember when we went to the Settings page and we set up the alerts. On the Notification, this is going to tell us how we received emails or text messages. You’ve got your primary, if you want to add another email address, you can. If you want to get text messages on your phone, you can get that set up. It’s really essential…
Naresh: We get text message alerts, not just emails.
Tom: I have my alert set up. I think that people can see, I’ve got mine set up for 8:00 AM Eastern Time. I’m telling you it’s seven o’clock every morning, bing bing bing, bing, bing.
Tom: I’m definitely getting alerts for dividends and it seem like today was the day that a lot of stocks went ex‑dividend and I received all those alerts, got them in my email address as well as on my cell phone.
You don’t have to be hanging around. Again, we try to make it easy. Our whole purpose here at TradeStops is to let you act on signals not noise, and make it so that you don’t have to be tied to your computer monitoring these five days a week, and then fretting about it two days on the weekend.
Naresh: Well, let’s get to a few more questions. We have some time, so folks in the questions box, you can feel free to write in any questions you have.
First question we have…Well, actually it’s the second question, “If you want to protect your gain, why wouldn’t you use a trailing stop and just tighten it to 10 percent, for example, instead of a fixed price?” This is a little off topic from alerts…
Tom: Well, that’s a matter of your investment goals and the amount of risk you’re willing to take. The biggest mistake that Dr. Smith and the team have seen over a long period of time is that people short change themselves on their profits. They sell their profits too quickly and they get out of their losses too late.
That’s a matter of your own personal investment philosophy. You can set that up as a 10 percent if you’d like. You can set that up as a fixed price. You can set that up as an SSI. That’s totally up to you.
You might find a stock, you might like Coca‑Cola. Coke has a VQ of under 10 percent, but you might take a Warren Buffett type of approach and say, “I’ll get out of it after it losses 30 percent.” That’s up to you. You’re an individual investor. You know how much risk you’re willing to take.
The beautiful part about the TradeStops system is that we’re able to help you set that up and understand the risk before you get into a trade. For those of you who are new to TradeStops, and you have your portfolios, you are able to X‑ray your stocks and you’ll understand the volatility of your stocks better after 30 minutes of TradeStops than in years of investing before being a TradeStops member.
By the way, Dr. Smith talks all the time about successful investing is about staying in the game. All of these alerts, all of these tools are to help you stay in the game. There to help you take small losses and un‑limit your gains, and hopefully you take some huge gains.
Remember the one we were looking at yesterday on NVIDIA? We can go back to that if you’d like. For those who do have questions, please keep in mind that our phones have been slammed. We are trying to get out from under the deluge, but we will answer you.
Go ahead and feel free to call and leave a message, 866‑385‑2076, email@example.com. The best place, Naresh, when people have questions is the Help Center.
Tom: Everything that we have talked about. You click on the Help Center in the upper right. It opens an entire new window. You go to Positions and Alerts and we tell you how to add them, how to edit them. We tell you what to do with closed positions. I didn’t have time to go over closed positions today.
How you manage the positions in your portfolio. All the different alerts that are available under the research, under the portfolios, there’s so much here. Please start here before you call, because you’ll probably be able to answer 90 percent of your questions, and save you a lot of time by looking at the Help Center.
That was the interlude. I know you do have some questions. Sorry to interrupt you.
Naresh: [laughs] No. A lot of good questions coming in. Next question we have, “How do I get notified on when to get back into a position that I’ve already sold? Is that possible?”
Tom: Yeah, there are a couple of things that you can do here. Let’s go back to our Settings page and we go to our, let’s see, on the Positions page. Do you want to know when the stock has given us a new entry signal? By clicking on Yes, it will set up a re‑entry watch list on stocks that you get stopped out of. When they generate a new SSI entry signal, you’ll get the alert. Real simple.
Naresh: Next question, moving right along, “At what time of the day do we get these alerts? Is it in real‑time? Is it at the end of the day? Is it during the day?”
Tom: All of TradeStops alerts…when it comes to stock action ‑‑ VQ alerts, SSI alerts, etc., etc., ‑‑ those are based on the closing price. We are not an intraday firm. We look at whatever the closing price is and then make the determination if your stops have been hit or not hit.
Now, it takes a couple of hours for us to get our data from our data provider, and once we get the data, then our programs were able to go in and make the updates as necessary. You will be notified of price alerts at the end of the day.
You’ll be notified of stocks going ex‑dividend, or stocks paying the dividend, etc., etc. Those you’ll be notified with that at the beginning of the day. Again, it’s based on the schedule that you set up within the settings themselves.
Naresh: Next question we have from Eric. Eric has an options related question. He says, “I like to sell puts or call verticals to limit my risk. Is it possible to set alerts for vertical spreads?”
Tom: We do not have that capability at this time. You can certainly go in and use individual option positions and set stop losses. Your own stop losses based on the price movement of either the option itself or the underlying ticker, but we don’t have any spreads or any…
We don’t have any multi‑leg capabilities for options within TradeStops and the keyword here is, yet. We are working on some of those. I don’t know when they’re going to be introduced. Hopefully, 2017, but I don’t know when that’s going to occur. We’re working on it. We’ve got a lot of option traders that use TradeStops.
Naresh: Tom, another question from Mike, “What defaults alerts are already set so that people don’t need to go and immediately, sometimes…?”
Tom: Well, honestly since I’ve changed all of mine, I think that we can click on alerts here. I think there’s a place somewhere that we can reset to default. I don’t remember where that is, but there is a place that you can reset everything to default. I don’t know where that is, but you can certainly look in your settings and find that.
One other thing, Naresh, the gentleman that asked the question about when the alert notifications come in, keep in mind that we are not connected in any way to the exchanges. We buy data. We pay a ton of money to buy data from all around the world, and sometimes the data’s not perfect.
I notice that there was a dividend that was delayed posting on Barrick Gold ABX a few days ago.
We’re good on probably 99.8 or 99.9 percent of our data, but understand that we are buying the data from an outside provider just as everyone else in this industry is doing. There is no such thing as a perfect data supplier. There can be times when positions don’t get updated as quickly as we’d like, because we don’t get that information.
We work hard to be in touch with the data providers to make sure that we’re getting every piece of data correct. When you’ve got 70,000 or 80,000 tickers that you’re following between stocks and mutual funds, and ETFs etc., etc., you can imagine there’s going to be one or two glitches along the way.
We do our best. We have a team that looks out just for that, but sometimes you’ll get a notification that, “Hey, we’re a couple of days behind on this.” For 99 percent of the members and 99 percent of the portfolios and positions, there’s not going to be a problem.
Naresh: A few more really good questions before we head out.
Tom: Yeah, let’s take two or three.
Naresh: One individual, Theresa, nice to meet you, Theresa, it seems like she’s a lifetime subscriber and has access to the billionaire portfolios. She wants to know, “Are billionaire alerts automatic, or do I have to go in and set up billionaire alerts? How do I get notification when changes that are made?”
Tom: Great question. Let’s go ahead and go to the newsletters. Let’s go to the billionaires themselves. Everybody loves Warren Buffet, so let’s go ahead and open his portfolio. We’re not going to give you the alerts on this.
What you can do is you can add as Watch Portfolio. What’s going to happen now is it’s loading into…OK, portfolio’s been created successfully. Let’s go to our portfolios. Here’s our Warren Buffet portfolio. Now, there are no alerts on the portfolio itself.
Let’s go ahead to the positions, click on this box here, ADD ALERT, click on SSI. There were few positions that we couldn’t create in SSI alert for. I know that Kraft Heinz hasn’t been trading long enough. The others might have some other conditions like that. Click OK, boom. There you go, Naresh. 40‑some odd positions, each with an SSI alert and it took less than 30 seconds.
Naresh: Boom, that was simple. It looks like we’re winding down with the questions. I think we’ve covered pretty much everything we can on this topic, Tom.
Tom: Fantastic. We’ll go ahead. We’ll end the webinar. We do appreciate your joining us as always. Tomorrow, we’re going to be talking about synchronization of your portfolios. This is going to be more technical. In all honesty, I probably know less about synchronization than anything else.
Fortunately, we’re bringing the expert in. We’ve got Allison joining us tomorrow. She’s literally been working with synchronization of portfolios within TradeStops for years. She has seen everything. She’ll give us a really good presentation on not just how to synchronize because that’s the easy part.
The hard part is what happens when there is a little bit of a glitch? We’re going to show you what types of glitches can occur and how to fix those.
Remember that webinar page on the login page, Naresh. Just go ahead and click on that if you want to register for that. Click on the register and join us tomorrow, 1:00 PM Eastern Time. We’ll be making a recording of it as well. Look out for the webinars we’ve got coming up next week.
It’s going to be a lot more information. We want to help you become an expert TradeStops member as quickly as possible.
Thank you, Naresh.
Naresh: Awesome. Thank you, Tom. This was very informational. I want to let everybody know, again, to get on that webinar tomorrow, tradestops.com/webinars. We’re going to be updating that page. The replay of this training session will be available later tonight. So tradestops.com/webinars.
Tom, it was great. I’ll talk to you soon.
Tom: All right, my friend…