We all have that relative, we’ll call him Uncle Joe, that claims he “made a killing” trading FANG stocks early in the year. Meanwhile, the talking heads on financial TV programs say all the “smart money” has been doubling down on the banking sector for its next big run up in the 3rd quarter with no mention of the FANG stocks. Successful traders, however, know that when it comes to identifying specific sectors or stocks that can yield a quick, profitable return, it can be difficult to know what direction to go.
The reality is that these specific “can’t miss” strategies are not only limiting but often ill-fated. If you want to be a successful trader, aim to become a “Jack of All Trades” instead of a master who focuses on one.
This is because the majority of Wall Street, like the guy that gave the tip to Uncle Joe, have their own agendas. They are hyping a specific stock or sector for their own gains. Research shows the so-called “gurus” don’t fare much better than the individual investor. The CXO Advisory Group has a section on their website titled Guru Grades. They go through years of data they have compiled to tabulate how many times each guru “got it right” on their forecasts. With dozens of gurus on their site, their accuracy ranges from 68% to 20% over a multi-year period.
While no one is expected to be right all the time, it leaves us to wonder how “guru” status is achieved when one’s accuracy shows a failure rating of more than 50%.
The lesson we should take from this is that it’s not about what you trade, but how you trade. If you feel compelled to find the next “vehicle” for your success, here’s a better idea: Find the success first and then trade any vehicle. Traders tend to spend too much time focusing on what’s hot. However, it isn’t the vehicle or the potential that is going to make you successful. Success comes from having the right technical tools and applying that knowledge to the markets.
Instead of listening to someone with a 65% failure rating, how about using a tool that can forecast trends across a variety of markets with up to 86% accuracy?
VantagePoint Trading Software utilizes artificial intelligence to create high-probability forecasts of market trend direction. This helps traders anticipate changes in price direction, rather than identifying trends after the fact, and gives traders confidence to find profitable opportunities in any market, no matter if they are trading stocks, futures, ETFs of Forex.
Sound technical tools should work largely the same in any market. As a trader, just because you aren’t familiar with a particular stock or market, doesn’t mean you should miss out on an opportunity to profit. But how does a trader find new opportunities if they are used to only trading one asset class?
In addition to helping traders be on the right side of trends, VantagePoint’s trading technology it can help find profitable opportunities in other markets. The IntelliScan® feature in VantagePoint can identify potential trades using criteria chosen from more than 70 filters. It then combines the data with its predictive indicators to identify trend direction, trend strength, market momentum, potential trend changes, along with next day highs and lows and possible points for trade entry and exit.
So stop using Uncle Joe as your source for identifying hot new trends, stop relying on talking heads who are right as often as they are wrong, and start utilizing a tool that has a proven record of making the right call across hundreds of markets and become a jack of all trading.
To learn more about how to use VantagePoint and see firsthand how our patented, predictive forecasts can help you be successful in any market, request a free demo.