The Summer Trading Haze

May 17th, 2017 by VantagePoint Software

The Summer Trading Haze 1200.628

To Trade Or Not To Trade

Summer trading can be difficult. Once upon a time, “Sell in May and go away” had meaning for traders. It used to be true that folks who pushed big money around went away for the summer, the volume dropped, and volatility increased. After all, big-money traders have families, they take vacations, and generally, need some time off. But with technology creating instant access to the global markets, traders can now do all of the above and still trade forex, ETFs, futures, stocks and everything in between without a problem. This suggests that the summer trading slump no longer exists. According to this study debunking the myths of summertime trading, that might be true.

The Reality

As a trader, the reality is that it doesn’t matter if it is true or not true that summer trading is habitually volatile or it lacks liquidity. Traders trade the markets regardless of season and track the market and trade based on a solid trading strategy. If the market turns volatile or the volume drops precipitously in July, August, or even January, that strategy should indicate the next move a trader should take.

Summer Trading Tips

Some will choose to sit these churning market outs, but others will dive in despite the ups and downs and the lack of liquidity. It all comes down to choice. But if traders choose to trade in the swirl of market instability, here are some basic tips to keep the boat from capsizing.

  • Reduce risk by reducing the bank. Simply, bet less and less often.
  • Reduce risk by setting the stops more tightly.
  • Pay more careful attention to the news. The breathless media can influence the market significantly more when it is in flux.
  • Choose trading spots more carefully. A trending market is more forgiving than a churning market.
  • Use the “down time” to think seriously about the current trading being used and then refine it even more.

What Now?

The market moves relative to events and the perception around those events. Big events include the global economic fundamentals, the patterns found in technical trading, and geopolitical happenings that can cause a market stir, and even what the breathless media says about these events.

Should traders sit out during the summer trading season because of all these reasons? Of course not! In fact, there is a FREE resource guide to make trading under the summer sun a breeze.

A better strategy for summer trading is to watch and see what the action is. If it is wobbly, wade in carefully, rely on accurate trading tools a bit more, and follow the tips above. Traders can reduce the guessing game by using powerful software like VantagePoint to predict market trends 1-3 days in advance with up to 86% accuracy. With the power of Artificial Intelligence and Intermarket Analysis, traders can use this powerful tool to make money no matter what season or market condition.

The Future’s So Bright, You’ve Got To Wear Shades

Some say summer trading activity in futures is higher. Maybe, or maybe not. But the course of action for traders is still the same; Follow the trading strategy set in place, analyze the markets carefully and always rely on accurate trading tools to make informed decisions.

Become a smarter trader and survive the summer trading season with VantagePoint Trading Software. Sign up today to receive a free demonstration of VantagePoint and see how our predictive technology can help you gain an advantage over the choppy summertime markets.

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Sell in May and Go Away?

May 10th, 2017 by VantagePoint Software

Sell in May and go away

If there is anything to recall relative to the current top-heavy market it would be this: what goes up must come done. And this brings us to “Sell in May and go away,” a ritualistic saying that may or may not is good advice. It truly depends on the market.

Market Trends

The market does not behave on ritual. It is cyclical, pattern-driven and historically bent. But it is not ritualistic. Does this mean traders should not follow the annual advice about “sell in May and go away?” The reality is that the market can, has, and will act differently each and every May. The wins (or losses) a trader encountered will determine whether he or she should sell or buy in May. After all, every portfolio is different. There isn’t a one-size-fits-all strategy. It’s all about doing what’s best to suit each trading style.

The Reality

However, the reality of today’s market suggests traders seriously consider selling this May, or soon thereafter, but not going away entirely. Think about divesting to build up a bank for the correction that is surely coming.  Remember Newtonian physics – what goes up must come down. Be aware, the market has been defying Newton for some time now and the apple is hanging precariously on its branch. But gravity will surely take over eventually.

By any measure, the market is overpriced. For example, the Schiller P/E ratio shows a market almost 10 points higher than the historical mean (25.35 now vs. 15.65 historical). There are more metrics, and here are 20 of them according to Bank of America.

Metrics aside, the biggest reason a trader should prepare for stepping away in May, or soon thereafter, is there is no rational for the big climb since November. The hope that the current political administration and Congress might produce tax reform and remove the regulations that keep the greed of big banks in check is not a solid platform upon which the current lofty market stature can stand. So far we have seen how well this dynamic duo has performed.

What now?

The point is this– the market will correct. It always has and it always will. Maybe not this May, but soon enough given the historical patterns of money movement in the summer. Having suggested this, it does not mean traders simply disappear.

Rather, do this instead:

  1. Keep a watchful eye and be prepared to get out when the correction arrives.
  2. Be patient. As with all corrections, they do not happen overnight.
  3. Use the right tools to track individual markets for short-term movement within the ups and downs of the correction. Find those trend resistors.

By modifying the strategy to adapt to the changing market conditions (whatever they may be and whenever they may happen), traders don’t have to “Sell in May and Go Away.” Instead, they can put themselves in a position to find profitable positions in any given season (and market condition).

The VantagePoint Difference

Smart traders find ways to make money. And all traders want to be smart, right? A tool that can help the timing and give accurate forecasts 1-3 days in advance will be crucial to every trader’s timing strategy. VantagePoint Intermarket Analysis Software provides that forecast with up to 86% accuracy.

Take a look at Nokia ($NOK).  Using the power of Artifical Intelligence and Intermarket Analysis, VantagePoint predicted a bullish trend starting in late April. In the 13 trading days since predicting the trend, the stock has rallied 18.73%. At a very affordable $5.25 share price, traders could have invested a small amount to yield large gains.

Nokia Stock Chart

5,000 shares x .95 =  $4,750 in profit!

Had a trader followed the “Sell in May and go away” logic they would have missed this short trend to make a very easy profit.

Despite volatile market conditions, there is always an opportunity to make money with the right tools and understanding. A blind strategy is a poor strategy. Don’t let this be you. Use VantagePoint to your advantage and find those trend-changing trades that can keep you successfully trading while others have simply gone away in May.

What goes up will always come down. Do you have the right tools to handle a market correction? 

Get ahead of trends despite any market condition with VantagePoint Trading Software. Sign up today for your FREE demo to see how you can predict market trends 1-3 days in advance with up to 86% accuracy.

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Using Artificial Intelligence Trading Software

May 2nd, 2017 by VantagePoint Software

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Are you ready for a self-driving car?
Did you ask Google, Siri or Amazon Alexa for anything today?
Was your last trade a winner?
Or did you lose?

These questions point to a reality in today’s world. Artificial intelligence (AI) is here to stay. You are up against it in the trading world if you are not using it to your advantage.

Success is all about increasing the odds of picking a good trade. It is about winning more and losing less. One way to increase the odds in a fluctuating market is to use trading software that relies on the power of Artificial Intelligence.

How Does Artificial Intelligence Work?

AI is based on the idea of intelligent agents. Intelligent agents are devices that gather data and take actions to maximize its chance of success to achieve a goal. AI does this through learning and solving related problems that might hinder achieving the goal.

Simply put, Artificial Intelligence is about collecting and crunching massive amounts of data for learning, reasoning and perception. It performs the work that humans cannot.

Trading Success with Artificial Intelligence

Traders need a tool that does the heavy lifting for them. There are many ways to trade. Trend following, mean reversion, technical, analysis, fundamental analysis, etc. However, the problem always remains the same. Which way is the market headed?

Our global markets are interconnected and complex. How do traders analyze multiple markets influencing each other to the degree needed to accurately forecast market trends?

The answer: Use AI-based trading software.

Capabilities of Artificial Intelligence with VantagePoint

VantagePoint Trading Software utilizes AI to learn about markets through intermarket analysis, defines movement patterns in those markets and then predicts where that market is headed 1-3 days in advance with up to 86% accuracy. VantagePoint and its AI component maximize your chances of trading success. The software crunches massive amounts of data to achieve a highly probable outcome.

Let’s look at Wyndham Worldwide ($WYN). With the power of Artificial Intelligence and Intermarket Analysis, Vantagepoint forecasted an uptrend in mid March. By the end of April, the stock had risen over 19%. Using VantagePoint to spot this early trend, traders were able to get in sooner and make a hefty profit with very little work.

Wyndham Stock Chart

 

 

 

 

 

 

 

 

 

 

 

 

Ultimately, the evolutionary maxim – adapt or perish – defines the reality in today’s trading world. Traders who are not using Artificial Intelligence software to their benefit when trading are not competitive.

Are you ready to learn how Artificial Intelligence can improve your trading strategy?

Sign up today to receive a FREE demonstration of VantagePoint. See how we use our Artificial Intelligence software to sift through massive quantities of financial data, uncover the hidden patterns of movement and use that information to accurately and consistently predict market trend changes in advance.Artificial Intelligence

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Learn the top benefits of ETF Trading

April 25th, 2017 by VantagePoint Software

Exchange Traded Funds

The stock market is many things to many traders. Simply speaking, it’s all about choices. Not only choices traders make when making a trade, but the choices made on what to trade. Stocks, options, forex and futures are all trading vehicles. But for many, the risk is too high or the payoff is not high enough to draw interest. In the middle are Exchange Traded Funds (ETFs), a trading vehicle that is relatively low risk with a payoff that is often quite substantial. With ETF trading, traders get the benefit of owning a mutual fund without having to pay the expensive fees or abide by time-limit rules.

What are ETFs?

As defined by Investopedia, An ETF is a security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Unlike mutual funds, an ETF trades like common stock on the stock exchange. ETFs experience price changes throughout the day as they are purchased and sold. ETFs have higher daily liquidity and lower fees than mutual fund shares. This makes them an attractive alternative for individual investors.

Benefits of Trading ETFs

Traders are not interested in the net asset value of an ETF. Just like common stock, they are interested in the current and future daily price. Here are the top 3 benefits to ETF trading:

  1. ETFs experience price changes throughout the day so traders can set up a trading plan as if they were any other vehicle. Traders can sell short, long, buy on margin, and can purchase as little as one share.
  2. ETFs typically have higher daily liquidity and lower fees than mutual fund shares. This makes ETF trading a solid alternative for traders who like to spread out the risk.
  3. ETFs are no different than other asset-based markets. You pay a commission to your broker just like any regular order. However, many brokers have started to offer zero-commission trades, which makes ETF trading even more appealing.

ETFs have worldwide reach

Another advantage to ETF trading is that they are globally traded including markets in Canada, China, the United Kingdom, Japan, Brazil, Germany and Hong Kong.

With its cutting-edge and patented technology, VantagePoint trading software mines global market data based on intermarket analysis and applies the pattern recognition capabilities of Artificial Intelligence to produce proprietary, leading technical indicators that look ahead, not backwards for the ETFs you trade. In our interconnected global trading world, this is a huge asset!

Let’s analyze the impact of oil. Although the profits earned by trading the oil futures are highly sought after, futures trading isn’t for everyone. The capital requirements, volatility, and the expertise required to trade the futures markets makes ETF trading a more suitable option for stocks traders. ETFs give traders ability to capture profits with oil futures while trading them like a stock.

Oil ETF

Notice how VantagePoint indicated both uptrends and down trends in the ETF United States Oil (USO) before they occurred. By utilizing Artificial Intelligence to analyze the impact of global markets, VantagePoint has the ability to combine past price data with predictive data giving traders the opportunity to gain 30% profit in two short months.

If you’re looking for a way to diversify, trade one-on-one, and get a low cost for the trade, consider ETF trading. Put the revolutionary power of AI to work for you.

Let VantagePoint help you predict the best ETF trades for your portfolio. 

Apply VantagePoint’s forecasting capabilities to your first (or next) ETF trade and ensure your timing is on the money, not after it.
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How to Avoid Being Fooled by Market Volatility

March 31st, 2017 by VantagePoint Software

Don't be fooled by market volatility

After months of running uphill despite pundits consistently saying market volatility will cause the uptrend to run out of steam, the market is finally beginning to look like it’s running out of steam. As we approach April Fool’s Day traders need to ask themselves “Is it a trick, or is the market volatility defining a new trend?”

A trader only needs to look at the non-market influencers to understand how market volatility becomes prevalent. Economic and earnings news is positive but the threat of rising interest rates looms overhead. The general unease in worldly politics seems to have a spotlight on the tragic comedy that is Washington D.C. Where the talk of policy change positively affecting the markets meets a failure to communicate across the political party aisle.

It’s hard for a trader to determine whether this recent downward move has legs, or if it is just another period of uncertainty caused by market volatility. How can one maintain confidence to place trades when the news surrounding the market is in a state of flux?

The answer is simple. Dismiss it.

Don’t get fooled by the noise that is the news. Focus on the charts and the data. Focus on what an artificial intelligence is telling you.

The artificial intelligence in VantagePoint is up to 86% accurate and can do a better job than the average trader of collecting, crunching, and making sense of the data needed to find trades in the midst of market volatility. VantagePoint’s sole purpose is to find movement patterns in the chaos and give them to traders as market predictions. It’s the equivalent of using a bloodhound to track a scent. It’s been trained to do a single thing which makes it the best at what it does.

The below chart is a perfect example of what happens when you trust the artificial intelligence of VantagePoint. Himax Technologies Nasdaq: HIMX had a bullish crossover in early February. We see the market turns sideways roughly two weeks into the trend. The chart indicates four bearish days in a five-day stretch. Many traders would see this and get out of their position while patting themselves on the back as they think they just avoided an impending downward trend change.

Market volatility
After a great start, HIMX had a run of bearish days that likely scared away traders not using VantagePoint…

But, VantagePoint is smarter than human traders. It crunches the data and indicates trend changes with a crossover of the blue line against the black line. Yes, the blue line is virtually on top of the black line. But there’s no crossover. The pinching or tightening of the two lines indicates the trend has weakened, but that the overall trend was still up.

Those same traders previously patting themselves on the back missed out on doubling their profit. The trend did not reverse. Instead, it soared up to the $9.50 area (and is still climbing as we write this). If you had gotten in when VantagePoint first identified the crossover, you’d be sitting on more than 82% profit. All while the news surrounding the market during that time attempted to increase the volatility. While the recent news may worry you personally, it won’t have you worried about your positions in the market.

Market volatility blog
… but by trusting the artificial intelligence of VantagePoint traders stayed in the trade and more than doubled their profits enjoying 82% growth since the initial crossover.

So, as we recognize an international “day of fooling” take a minute to think about how you’re keeping yourself from being the fool. Don’t let market volatility fool you on April Fool’s Day or any other day. If you’re not confident your current tools can provide up to 86% accuracy the way VantagePoint can, maybe you’re already the fool.

Don’t be fooled by market volatility. Sign up for your free demo of VantagePoint today.

The best tools help you to avoid foolish decisions. Sign up today to receive a free demonstration of VantagePoint and ask our software specialists how VantagePoint’s predictive artificial intelligence can keep you looking foolish in the markets.

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Are you a SMART trader?

March 23rd, 2017 by VantagePoint Software

Smart Trader

Trading is difficult for many reasons. But, that does not mean you can’t do it well, especially if you trade intelligently. Trading intelligently is about the decisions you make before, during, and after your trade. But, being a SMART trader is about how you think and behave as a trader.  Traders should make it a goal to be both intelligent and SMART. Here are a few characteristics of a SMART trader and some tips to improve your own trading style.

Smooth

Trading has a way of getting under your skin if you let it. Don’t let it. A SMART trader always keeps their cool and do their best to not get ruffled feathers. Volatility in the market can pay off for a trader. But, it will never pay off if your volatility keeps you going up and down with your trade. Don’t be that trader who freaks out when the opposition scores; rather, be the smooth trader who remains calm under pressure and keeps both eyes on the ultimate prize.

Mechanical

Trade as if you are a mechanic – follow a process. There is room for creativity in trading, but not much. Being successful is all about keeping the machine running well. To do this, one needs to build and execute trades with the idea that every screw is important, and all the parts need to work together to make the engine hum. Define your strategy precisely and then stick to the plan.

Adaptable

Be disciplined in following a process. But when that process is failing, smart traders need to adapt. Maybe you need to research a new sector, acquire new information about your market, or find a new time to set up your trades. Or maybe it is just the market going screwy and it may be best to sit out for a time. But whatever your trading plan, if it is not working, you must adapt. You must change and be willing to try and new strategies with an open mind.

Risk Averse

The most important thing to always be thinking about when trading is avoiding risk. Now, there is always a risk when trading, you’ve seen the disclaimers. But, the goal of trading is to minimize that risk as much as possible. This way you can win more than you lose. Behave as if every trade is the only trade you will make, and you desperately want to win.

Tool Oriented

Trading is long past the days of hand-drawing charts, and it is well into the days of software-based trading, which means having the right tools is about software. But not any software will do. A SMART trader needs a smart software. VantagePoint, for example, uses artificial intelligence to sift through massive quantities of financial data, uncover the hidden patterns and relationships in that data, and use that information to predict market trend changes in advance.

Become a smart trader. Sign up for your free demo of
VantagePoint.

The best tools make you a better trader. Sign up today to receive a free demonstration of VantagePoint and see how our predictive technology uses artificial intelligence to forecast market movement with up to 86% accuracy.

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Market Perception: How traders can find a profitable reality

March 3rd, 2017 by VantagePoint Software

Market perception versus market truth

The status of the current market is a clear reminder there are times when market perception far exceeds market reality. The perception that President Trump will be good for the market spurred buying trends following the election. From election night on November 8 to Inauguration Day on January 20th the S&P 500 and Dow Jones Industrial average jumped up 6.2% and 8.2% respectively.

We then saw a minor rollback after the first two weeks of the new Trump Administration. In the month following the inauguration, the indices have moved up just 2.0% for the S&P and 2.3% for the DJIA.

The above stats provide an implied assumption that the “Trump Rally” is fading. But is it? After all, the market continues to reach new highs. So, what is market perception and what is reality? What is fueling the market’s higher moves and where is the impetus coming from?

Is the data telling the whole truth?

The answer lies in that the market is trading on the perception that Trump is good for American commerce. This translates into the idea he’ll be a positive effect on the markets. But we still don’t know whether this is a perception or a reality?

The short answer is that at this point we still don’t know. One thing we do know is a market reality that can help determine Trump’s validity while giving us a clue to future market direction. The market is highly overbought based upon an overabundance of metrics. When the market is in this condition, a common market perception is to expect a bearish correction sooner rather than later.

Larry Fink, the CEO of the world’s largest asset manager BlackRock, said in a recent interview his market perception is “there are dark shadows that could impact the direction of the marketplace.” He goes on to explain this is due to the recent moves by President Trump. He adds that the markets “look ‘bi-polar’ and wouldn’t be surprised if there were setbacks for stocks.”

This suggests there truly is a change in market perception occurring, slight as it may be. His most vocal adversaries take these perceptions and run with them. They claim that he creates instability with world leaders, Congress, and wide segments of the American population. While the reality is that none of these things have had a negative effect on the market. Suggesting once again, market perception exceeds reality.

Market perception and the average trader

So what does this have to do with you, Joe Q. Trader? It suggests that politics have a limited effect on the markets compared to policy. So far, the initiated Trump policies have only had a slight effect on the market. Though they tend to be the driving force of many pundits that have the perception of Trump as a catalyst.

Don’t trade based on political ideals, instead find a reliable source of data. A source unmotivated by political happenings and can look at the important aspects of market movements. A source like VantagePoint that relies on identifying market trends and uses artificial intelligence to identify intermarket relationships affecting a given market and produces market forecasts that are up to 86% accurate. When you stop relying on talking heads and their market perceptions and start focusing on the realities you see in VantagePoint, be ready for the reality of a growing portfolio.

See how VantagePoint can help you find more profits

Sign up today to receive a free demonstration of VantagePoint and see how our predictive technology uses artificial intelligence to forecast market movement with up to 86% accuracy.

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Trading Under Trump: Uncertainty clouds financial markets

February 21st, 2017 by VantagePoint Software

Trading Under Trump

Earnings, the Fed, the fundamentals, and the President. This is what is facing those trading under Trump. Uncertainty is now the buzz word for traders, and how could it not be? A U.S. president can rattle world markets with the stroke of a pen or a misplaced word. The dollar fell against the yen following President Trump’s executive order attempting to place a 90-day travel ban to the U.S. by citizens of some Middle Eastern countries.

The reality of a U.S. president’s influence on world affairs and markets is not new, of course. But, we seemed to have entered unprecedented times. President Donald Trump’s short time in office has shown how unpredictable he can be compared to his predecessors. That volatility in politics easily transfers to volatility in the markets. Making an already difficult practice even harder for those trading under Trump.

This reality is also not new. As far back as the Great Recession, global markets have struggled through periods of uncertainty. The big question is: how do traders deal with an uncertain Presidential “trump card” hanging over the market?

Normally, one looks at all the factors currently affecting the market to arrive at an understanding. We recently discussed how winning more than losing is all about moving the odds in your favor.

So, in this time and place, we have the unknown in President Trump. We also have knowns in earnings and economic fundamentals. Looking at these two factors, one could assess the market as being in a fairly solid place, right?

The “knowns” are positive

Earnings have provided a very positive outlook recently. As of January 27, with 34% of the companies in the S&P 500 reporting actual results for Q4 2016, 65% of S&P 500 companies have beaten the mean EPS estimate and 52% of S&P 500 companies have beaten the mean sales estimate.

Economic fundamentals are also bullish. The January Dallas Fed manufacturing survey jumped to 22.1, beating the 15.0 expected and marking the highest level since early 2010. December’s report was also revised to 17.7 from 15.5. The report had spent most of the last two years providing negative figures.

The government may trump everything

Despite the reality of decent earnings and decent economic fundamentals, the market might well be trumped by Trump. It’s looking more at the President’s influence over the world, particularly as it relates to the Fed.

Who can forget the Fed? This group has created more uncertainty in the market in the last decade than any other entity. Change is coming, eventually. Fiscal policy, trade policy, and regulatory policies are all on the table and up for review in the Trump administration. In addition, we can’t rule out seeing significant changes for the Federal Reserve and how it conducts monetary policy.

Where does all this lead us? Why right back to the future of the market trying to determine how we turn the odds in our favor with all the uncertainty in play. One choice is to sit it out, watch, and wait. But, four years is a long time.

How traders can balance it all together

So, if trading under Trump is unavoidable, an alternative approach could be to become a smarter trader. Watch specific markets carefully and ask yourself a question – Which individual markets could flourish under President Trump?

Use trading software that can spot similarly trending markets and utilize artificial intelligence to identify trends before they take off. VantagePoint does just this. It utilizes artificial intelligence to forecast market movements 1-3 days in advance with up to 86% accuracy.

With an ever-uncertain presidential cloud looming over the markets, the more reliable tools you have in your corner, the better you position yourself to be profitable.

Become a smarter trader with VantagePoint

The best tools make you a better trader. Sign up today to receive a free demonstration of VantagePoint and see how our predictive technology uses artificial intelligence to forecast market movement with up to 86% accuracy.

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Market Risk – Moving the Odds to Your Favor

February 17th, 2017 by VantagePoint Software

Market Risk and Reward

There is an inherent market risk when trading. An obvious statement, we know. But why, then, do so many play the market as if risk does not exist? Why do so many traders lose more then they win and, eventually, lose it all?

The answer is just as obvious. Perhaps it is because many believe market risk can be overcome, when, in reality, it can only be reduced, mitigated, or otherwise tempered.

The market IS risk to varying degrees, nothing more, nothing less. It is people (and people programming computers) making bets. There is only one certainty. The market will go up or the market will go down. You can reduce the probability to an even bet. There is no overcoming market risk – it will either go up or down. Flip a coin.

Every trade has an element of risk, but you can lessen it while increasing your chances of picking which way it will go. If you understand this, you are ahead in the game.

There are those who think that there is no need to lessen your market risk. They believe they “know” which way a given market will go, or they believe someone else “knows” which way it will go and they can listen to that person. We say that blind faith is a coin toss. At best, you will win more than you lose. At worst, you will lose all you have playing with that strategy long enough. It is not even luck – it is the law of probability. It is guessing and putting you at the mercy of inherent market risk.

Try to mitigate your market risk instead. If you do, you can bend the law of probability in your favor. There are three easy steps you can take to start limiting your market risk:

3 Steps to reduce Market Risk

  1. Learn the market you want to trade. Identify past patterns that will repeat over time.  Study them and you will be better served to see repeatable patterns you can act upon.

If you study the market from May 2009 through the summer of 2016 you will see identifiable patterns attached to repeated events. For example, in 2009 there was a repeated event – the potential collapse of the euro. A market pattern developed as that event was repeated ad nauseum in the news. We have a current event that mirrors this in the Fed’s “will they or won’t they” discussion on raising interest rates. Study the movements around this event and you will begin to see a pattern.

  1. Understand the psychology of the market and The Market ‘R Us people making emotional decisions.

The psychology of the market is correlated to the above, but it is less specific and harder to pinpoint. Nevertheless, if you track global events, stay tuned into the global consumer. Understand economic fundamentals and you will soon learn to better “predict” emotional market responses from the greater population of traders. This will allow you to be in a better position to make moves for your own portfolio.

  1. Supply yourself with software that helps you reduce market risk and help you win more often and defy the law of probability.

Understanding that market analysis software is here and ready for you to use it as a solid way to mitigate market risk. The best way to capture these benefits is to find software that works, software that has a track record of helping users determine short-term market movement. VantagePoint uses artificial intelligence to predict market movement 1-3 days in advance with up to 86% accuracy. We eliminate the coin flip approach and help you focus on markets that are more likely to produce winners and reducing market risk and volatility.

If you learn nothing else regarding your trading in 2017, understand that market risk is always present. However, with the right education, market understanding, and analytical tool, you can manipulate it to be more in your favor.

Reduce your market risk with VantagePoint

Make sure you have all the best tools available to you that will reduce your market risk. Sign up today to receive a free demonstration of VantagePoint and see how our predictive technology can help you gain an advantage over the markets and make 2017 your most profitable year yet!

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Big Trends and Big Trades after ‘The Big Game’

February 13th, 2017 by VantagePoint Software

Big Game Big Trades

The financial world is full of big trends and trendy indicators, predictors of future market value. But, one would be hard-pressed to find one as wild as the Super Bowl indicator.

According to the “Super Bowl” indicator, a win by an American Football Conference team, like the New England Patriots, means stocks are more likely to see big bearish trends.  The indicator, which was first introduced in the 1970’s, has an 80% accuracy rate according to Investopedia.

LPL Financial crunched the numbers further and found that in the year an NFC team wins, the average return for the Dow Jones Industrial Average is just under 11%, compared to just a 4.3% average return in the years an AFC team wins.

Theoretically speaking, this is interesting, and it sparks thought about probability, randomness, and cosmic forces beyond our control. But on the practical side, traders should ask the question, “Is this an indicator that I should utilize to capture big trends and utilize to risk your money?”

Putting aside the 80% accuracy rate of the above, the odds are good the market will drop substantially this year. For no other reason than the Schiller P/E ratio for the S&P 500 is extremely high. Shiller P/E at 28.6 is 71.3% higher than the historical mean of 16.7

Factoring in the current U.S. and global economic fundamentals, one does not see the precipitous danger. But, they are also not pointing toward momentous growth, which brings us to the Fed.

Janet Yellen will disclose their thinking next week. It would not be surprising to hear her say (once again) that the Fed is considering raising rates. Why? Perhaps it would be the big trends that led to an escalation in jobs and the slow rise in wages.

Combine an interest rate hike announcement with a market that has ridden big trends to new highs that may be too good to be true, and add the geopolitical wobbliness, and you have the ingredients for a snowballing effect in the market. One thing the market deems “bad” and we see a push of the panic button. Once the stampede starts, the market could easily see big trends to the downside and see a 10-15% fall rather quickly. It is that far out of balance.

While this still falls into the “possible” category, one thing that is fairly certain. According to historical terms, the market is due for a correction. The DJIA has climbed approximately 11% since the election. The “President Donald Trump Rally” looks to be weakening. When you take Trump out of the equation, there is no substantive reason for the recent market run in place since November. Which then leads to every credible market analyst pointing towards any reason it would continue.

The Patriots came away from last weekend’s game as champions as an AFC team. You can decide how much merit you will place in the unrelated “Super Bowl” indicator.

Catch the big trends BEFORE they happen with the help of VantagePoint

If you want to find a more reliable way to analyze the markets, then look no further than VantagePoint Intermarket Software. It utilizes artificial intelligence to forecast market movements 1-3 days in advance with up to 86% accuracy. If you want a specific example, then check out the chart below of the E-mini S&P 500 that demonstrates how accurate VantagePoint can be.

VP blog -Big trends after The Big Game

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