Common Indicators I will be using in my strategies

by admin November 15, 2011

ATR=  Average True Range= A good indicator to find stocks that move (Volatility) -  ATR % 14=  Average True Range over a 14 day period - ATR%(5) > 3=  stocks that your strategy will look at have moved at least 3% per day from there high to there low over a 3 day period -  ATR (5) > 0.75=  stock has a range from its high to its low of at least $.75 Volume=  Shares traded per day(s) - Volume= the higher the volume= the more liquidity and the easier it will be to get out of positions

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CoolTrade Advice, Recommendations and Observations!

by admin November 14, 2011

CoolTrade is a powerful system- highly robust, yet easy to use. Easy enough for beginners, however a little “extra knowledge” can be very helpful in using CoolTrade. First of all, and I can’t stress this enough- simulate, simulate, simulate! No matter how tempted you are to go live, I highly recommend that you simulate first, as what you see may be hard to cope with. It’s easy to see your autotrader taking profits and fun as well, but when stocks go against you and you see a lot of losses piling up its not so fun and hard to handle, which

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How CoolTrade Empowers Investors…

by admin November 10, 2011

When investing in the stock market, investors face a myriad of challenges to obtaining profitability! These challenges are vast and as a result the overwhelming majority of investors are unsuccessful.

Challenges People Face
- What stocks to buy & how much?
- When to buy?
- When to close out of positions?
- How much profit to seek?
- Should I use a stop loss?
- Industry Nonsense! Rampant Misinformation: Misinformation is RAMPANT in the financial services industry. Make no mistake about it, this is 100% by design. Keeping the public confused about what is what when it comes to the stock market is a major trick of the trade. A confused public keeps the average investors using the services of financial services professionals. These professionals are often little more than sales people under the guise of advisement professionals. A stock broker. Is a sales person. Think about it, in other industry to broker something is to sell it! Their advice should be taken with a grain of salt.
- Information Overload: If you ever watch the financial media, you’d realize just how much you are bombarded with information. Information, largely irrelevant to profitable investing. However, this bombardment causes many people to be overwhelmed and is a major impediment to profitable investing.

Why Investors lose money-
- Emotional Trading= Primarily Fear & Greed: Fear and Greed are major causes of failure for investors in today’s markets.
- Poor Money Management
- Lack of a Trading/Investing Plan
- Utilizing a Buy and Hold Strategy (commonly through mutual funds- IRA/401k)

What is CoolTrade? CoolTrade is Automated Trading for the Public…-
- Fully Automated (One of a Kind)- starts up on its own, trades your rules based strategy and shuts down when the market closes
- Point and Click Strategy Development Platform
- Advanced Stock Screener
- Live Market Simulator

How Does CoolTrade Eliminate These Issues Making Them Irrelevant?
- Takes the Emotion Out of Trading As a fully automated system your rules dictate when trades take place and the size of your trades
- Money Management System Built-In by Design
- CoolTrade gives users the ability to trade in multiple formats: in fixed lots, as a percentage of your bankroll or a dollar amount CoolTrade is incredibly flexible.
- CoolTrade allows you to add to existing positions as well… This can be based on any number of rules, from mere price movement to strengthening of trends or a variety of other rules related to the that stock or the overall market… Additionally, CoolTrade can be set to hold onto capital to add to each position you hold.
- Advanced Profit Taking Tools Included: Allowing users to maximize profits: The CoolTrade Profit Goal Feature allows you to ride your winning trades higher while minimizing your losses. Also includes Profit Protection, Stop Losses, and Trailing Stops to reduce risk and limit your exposure to trades that go against you. Additionally, there are advanced indicator exits allowing you to exit trades based on a multitude of market conditions.

Ultimately, CoolTrade was designed to level the playing field. With knowledge of these common causes people fail when investing, CoolTrade’s programming staff set out to design a product that combats these issues, while making it easy for anyone to use and understand. Personally, I feel they did an amazing job!

The Smart Money is SHORT!

by admin November 9, 2011

When talking to most investors, they only know one way to trade. They buy stock with the hope that it will increase in value. This is what is referred to as a long trade. Well the opposite of that is going short, or “shorting” a stock. In this case you borrow the stock with the hope that it falls in value and when you want to exit a trade you execute a buy order. If all goes well you buy the stock at a lower price than you borrowed it at and pocket the difference.

Most people, however only trade “long”, buying stocks they hope go up in value. This is for a number of reasons, but mainly years and years of “conditioning” by the financial services industry. With mutual funds and 401Ks as the main way most retail investors are exposed to the stock market it is no wonder that this is the case.

You see in your 401k and IRA you are often restricted from going short or shorting the market. Thus your only hope of gaining value in your account is for the market to increase in value. With these investments often invested in mutual funds, which are typically so diversified that there performance largely mirrors the “overall stock market” you are essentially a sitting duck to the large financial institutions and savvy investors.

You see roughly 85-90% of the capital in the markets is controlled by institutional investors- large hedge funds, investment banks, pension funds, etc. They move the market, not the “little guy”. They also influence the rules you must play by through excessive lobbying and other “devious” ways. And when there is such a rule prohibiting you from participating on one side of the trade- its got to make you a little suspicious.

Anyways, it should be apparent to anyone with half a brain that the smart money is going short.

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Sidenotes

November 15, 2011

ATR=  Average True Range= A good indicator to find stocks that move (Volatility) -  ATR % 14=  Average True Range over a 14 day period – ATR%(5) > 3=  stocks that your strategy will look at have moved at least 3% per day from there high to there low over a 3 day period -  [...]

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November 14, 2011

CoolTrade is a powerful system- highly robust, yet easy to use. Easy enough for beginners, however a little “extra knowledge” can be very helpful in using CoolTrade. First of all, and I can’t stress this enough- simulate, simulate, simulate! No matter how tempted you are to go live, I highly recommend that you simulate first, [...]

Read More »
November 10, 2011

The CoolTrade Strategy Wizard is increbily easy to use.  As a point-and-click development platform anyone with a little bit of computer savvy (very little) can easily develop there very own trading strategies.  However, since it is packed full of options, allowing users many different possibilities in how they trade a little training is typically nessasary.  How [...]

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November 10, 2011

Creating a Strategy with CoolTrade couldn’t be any easier. With its point-and-click interface, CoolTrade makes it incredibly simple to develop your own fully-automated trading strategy. Better yet upon signing up, there are 100s of downloadable strategies free of charge, both CoolTrade Strategies as well as user shared strategies are available right out of the box. [...]

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