Five Trading Questions Every Trader Asks (and how we’d answer them)

January 12th, 2017 by VantagePoint Software

Trading Questions

As we ring in another new year it’s important to keep in mind that nothing changes as much as it remains the same. For example, political power has changed, but the themes remain. Republicans will continue to attack the usual topics including the Dodd-Frank regulations that curtail the healthy financial industry. Democrats will continue to attempt to outmaneuver Republicans in an attempt to stop them.

The turbulence from the political battle will no doubt affect the market (another yearly constant) and cause angst for everyone involved. But, more likely than not, the five trading questions we’ve listed below is what’s really going to keep Joe Q. Trader awake at night in 2017. These trite realities will wreak more havoc on you than politics will on the market. At least it will if you don’t learn one simple thing – you can do nothing about the external realities affecting the market. But, you can do much about the internal forces keeping you awake at night. Nothing changes as much as it remains the same. So without further ado, here are five trading questions traders commonly ask and useful mottos to remember when facing your most common trading angst.

5 Common Trading Questions

Did I make the right trade?

Second guessing your trade is useless. If you researched with forecasts that highlight trend changes and set the trade up properly, you have a high-probability trade with a well-defined in and out based on a reasonable profit/loss. Let it ride. Motto: The trade is made, move on.

How could I have been wrong?

Trades go south. Figuring out what went wrong is important. Beating yourself up over it after the fact is not. Learn from those mistakes and protect yourself with the proper tools. VantagePoint provides a clear crossover on its charts indicating trend changes that can be used to improve your timing on entries and exits.  Motto: The trade was made, move on.

Check out this video to see how VantagePoint identifies trend reversals before traditional traders even know what’s going on.

Why did I lose money?

Again, trades go south, which usually means a money loss. But, this is an integral and necessary part of the game. No one wins all the time. The trick is winning more than you lose. See your losses as learning opportunities, nothing more. Utilizing tools like VantagePoint’s Intelliscan will help find trades that are in a better position to move in a given direction. It can also help you identify markets with high volatility that you can avoid until the market becomes more favorable. The goal is to improve your win/loss ratio, not worry about your past losses. Motto: “Fogetta boud it …”

What will the market do tomorrow?

Truthfully, more pundits/analysts get this wrong than right. The market is the collective conscious of millions of humans, so consistently predicting with accuracy the daily behavior is unlikely. VantagePoint’s patented neural networks analyze intermarket relationships and predict market movements with up to 86% accuracy. Utilizing technology will help you sleep at night because it doesn’t have to. Motto: Technology is your friends, let it help you.

Should I even be trading?

For many beginner traders, this question will cause the most sleepless nights. Second guessing your trades, beating yourself up after a poor decision, fretting over losing trades, and betting on what others think the market will do tomorrow will all lead you here. Master the answers to trading questions 1-4 and you are less likely to end up contemplating this question. Something to also keep in mind; trading, like any other skill, takes time to learn. Stay calm and learn from your losses. Utilize the tools available to maximize your potential. Do these things and the answer to question five will more than likely be yes. Motto: Do it right, sleep at night.

Trade confidently with the help of VantagePoint

Don’t leave yourself unprotected and answering these trading questions on your own. Sign up today to receive a free market forecast from VantagePoint and see how VantagePoint can help make 2017 your most profitable year yet!

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UPDATE: VantagePoint Helps Customer Find 256% Growth with Accurate Forecast

April 21st, 2016 by VantagePoint Software

VantagePoint tracks CDE to a 250% uptrendUPDATE: The day after we  posted this video and blog, $CDE dropped, become a 4 day trend to the downside. 

That is plenty of time for most traders (without VantagePoint) to consider the uptrend over and get out of this position. However, the downtrend would soon show itself to be nothing more than a speedbump on a strong uptrend that grew an additional 20% after the loss.

Traders who use VantagePoint would have been able to see this as nothing more than a short-term loss and stayed in the trade. How would they have known to do that? Check out our updated video to see how VantagePoint’s forecasts saw through this sudden change and presented our users with even more chances to grow their profits. Scroll below the video to read the original post and watch the original video.

As a trader, just because you aren’t familiar with a particular stock or market, doesn’t mean you should miss out on a tremendous opportunity to profit. We received an email from a VantagePoint user explaining that he had made “a boatload of money” on a stock he had never heard of, or traded before.

He went on to explain that the stock showed up on one of VantagePoint’s scans as a potential trading opportunity. Coupled with his reliance on VantagePoint’s up to 86% accuracy, he took advantage of this information and has made a 256% return on his initial investment!

Check out our quick video that walks through exactly what you could have seen on day 1 of this potential trade and how using VantagePoint’s predictive indicators could have given you the confidence to remain in this trade and make a huge return.

This is a perfect example of what VantagePoint does for our customers. It identifies trading opportunities you can get involved with and profit from. That is why so many of our customers have been able to recoup the cost of the software so quickly.

Don’t limit yourself to your familiar and favorite stocks. Look beyond that and let yourself find the opportunities that can help you grow your trading account.

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Celebrating the History of Louis Mendelsohn

March 25th, 2016 by VantagePoint Software

1979 – Mendelsohn and Technology

Louis Mendelsohn

What did technology look like for most people in 1979? It looked like the Atari personal computer or the Sony Walkman.

For Mr. Mendelsohn, technology looked dramatically different as he had the foresight to know that it could transform the trading industry.

He had traded equities and stock options while in graduate school. In those days he was analyzing the markets with hand drawn charts and a hand-held calculator. In 1977, while working as a hospital administrator, Mr. Mendelsohn realized that technical analysis and trading could be revolutionized by computer software. Traders, like himself, could make more profitable decisions with technology by their side. He immediately began applying personal computers to technical analysis and permanently changed his profession.

Mr. Mendelsohn formed Market Technologies in 1979 for the purpose of licensing the trading software that he developed for himself, beginning a revolution that laid the groundwork for today’s sophisticated trading technology.

2 – Industry-Changing Patents

Mr. Mendelsohn holds not one, but two significant patents. What’s the backstory? In the 1980s, when other traders still had a myopic focus, he began to recognize the dynamic interconnections occurring between related global markets and integrated them into his computerized trading strategies.

Since it is humanly impossible for a trader to visualize and calculate these complicated relationships, Mr. Mendelsohn applied sophisticated mathematical processes known as neural networks to the VantagePoint Trading Software to perform intermarket analysis.

On May 14, 2013, Mendelsohn was granted Patent Number 8,442,891 by the U.S. Patent Office. This covered his proprietary computerized processes for applying neural networks to intermarket data. His second patent, Patent Number 8,560,420, involved his invention of predictive technical indicators that can forecast trends and changes in trend direction, was granted on October 15, 2013.

Mr. Mendelsohn has continued to be the driving force behind innovations in technical analysis trading software. He has implemented intermarket analysis through the use of neural network pattern recognition to create leading technical indicators that now forecast hundreds of global financial markets daily.

62 – Employees who Love Louis Mendelsohn

Market Technologies currently employs 62 people. Many people have called Market Technologies home in the last 37 years. What started as a small endeavor by a man with a desire to help others succeed, has grown into an award-winning company.

Market Technology’s first recognition came from Deloitte & Touche. They recognized the company as one of the 50-fastest growing tech companies in Tampa Bay in 1998. In 2004, Inc. Magazine recognized the Wesley Chapel-based company when it named them to the Inc. 500 List of the fastest growing private companies in the U.S. Throw in recognition from the Tampa Bay Business Journal as “One of the Best Places to Work in Tampa Bay” in 2006, 2007, 2011 and 2013 and you have yourself a company that continues to change peoples’ lives in more ways than one.

86 – Unmatched Accuracy

Reverse 68 and you get 86. Why is this important? Because VantagePoint Intermarket Analysis software, Mr. Mendelsohn’s brainchild, predicts market trends with up to 86% accuracy.

Unlike the work of so many people in the financial world, Lou Mendelsohn’s legacy is both verifiable and lasting.

Mr. Mendelsohn one of the first pioneers to apply personal computers and trading software to technical analysis. He was also the very first person to introduce back testing into trading software for personal computers in 1983 with ProfitTaker. As a result, Mr. Mendelsohn was instrumental in transforming technical analysis from its earlier pre-computer days into a multi-million dollar trading software industry. As for his own company, Louis Mendelsohn has grown his trading software empire, Market Technologies LLC to be a continued leader in market forecasting with VantagePoint’s up to 86% verifiable accuracy.

15,000 – VantagePoint Customers and Growing

That’s the number of traders Louis Mendelsohn has helped to transform their lives with his invention of VantagePoint Intermarket Analysis Software. Traders from all walks of life and across the globe now have a trading tool to help them to find consistent profitability in the markets.

Mr. Mendelsohn has created a company culture at Market Technologies that has given hundreds of employees the opportunity to grow in their careers and live happier and richer lives.

We make a big deal of every employee’s birthday at Market Technologies. Everyone sings and the guest of honor gets the cake of his or her choice. So on March 26th, help us give a special shout out (go ahead and treat yourself to a piece of cake too) in honor of our beloved CEO and founder, Louis Mendelsohn.

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How to take a Breakout Trade Using a Predictive High and Low

October 19th, 2015 by VantagePoint Software

breakout trades

Anyone who has been around the market for any meaningful period of time has learned many lessons that are invaluable for technical trading. One of those lesson is that trading a breakout can be one of the most profitable times to capture a big market move. With the right information, traders can receive early alerts to when a trade is about to breakout. Find out how to take a breakout trade using a predictive high and low.

What is a Breakout? 

Like the name suggests, breakout trading is the practice of buying stocks or other assets as they “break out” above a prior resistance level or “break down” below a prior support level. Since support and resistance have previously acted as thresholds for the stock, when it moves beyond these levels it predicates a much larger move.

Here’s another way to think about it from the supply and demand perspective: If a resistance level indicates a glut of supply of shares of a stock at a particular price level then a breakout above that price level should mean that buyers have absorbed the excess supply above, and now those sellers are adjusting their ask prices to higher levels. This excess supply is what causes the stock’s price to go higher. 

Challenges of Breakout Trading

While trading breakouts seems like a logical approach, fundamental and value investors can find the psychological aspects of breakout trading as an impediment. For example, on an upward breakout, it is counterintuitive for a value investor to wait to buy the stock at a higher price.

A Technological Assist

So how do individual traders gain the confidence to take breakout trade? As mentioned earlier, it’s all about having the right information from the right tools. VantagePoint’s predictive indicators give you a forecast of the stock’s next day’s move.

VantagePoint breakout

How can VantagePoint do this? By using intermarket analysis and a neural network process to find hidden patterns and relationships between markets. VantagePoint’s proprietary indicators provide short-term trend forecasts that anticipate trend changes instead of those that lag the market. This process provides a unique perspective on markets that uses foresight instead of hindsight giving you an early indication of when a trend may breakout. Couple this with the software’s accuracy, proven to be 86% accurate, you’ll have the confidence to take break-out trades and hold positions throughout times of volatility.

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How Can VantagePoint Software Diversify Trades in your Portfolio?

May 27th, 2015 by VantagePoint Software

How to Diversify Trades in Today’s Global Markets

Learn to diversify trades

If you’re looking diversify trades in your portfolio then it’s important to ensure you have a system that is accurate and consistent regardless of the market you are trading at that time. VantagePoint’s predictive technology works across all markets and conditions to help futures, forex and even stock traders become consistently profitable, no matter their different trading styles.

In today’s video we showcase recent successful VantagePoint forecasts for the following markets:

Futures chart – We’ll show you a Soybean forecast that helped VantagePoint traders profit $2650 per contract in just 11 trading days.

Forex chart – We’ll show you a U.S. Dollar/Canadian Dollar forecast that helped VantagePoint traders profit $4183 per standard lot over 7 days.

Stock Chart – We’ll show you a Earthlink $ELNK which helped VantagePoint traders cash in profits of 47% in just 36 days.

Why should I diversify trades in my portfolio?

Today’s markets are completely intertwined and have a global impact on one another. Rather than trading in isolation it’s important to have a global perspective on how other markets push and pull the price of the market you are trading. Understanding these complex relationships can help you win across the board when a trend takes place.

VantagePoint Software, developed in 1991 by Market Technologies, LLC holds 2 patents on the science behind applying Intermarket Analysis and Neural Network technology to a trading software. Our software identifies the 25 intermarkets for each stock, commodity, forex pair etc that you are trading and identifies what weight should be applied to each. The end result is a deadly accurate forecast for the next day’s trading range.

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Stock Trading Basics – The Importance of Technical Indicators

March 5th, 2015 by VantagePoint Software

What is the importance of technical indicators in today’s trading conditions?

The Importance of Technical Indicators in Stock Market AnalysisYou’ve done the research on a company, evaluated their balance sheets, and taken into account the P/E ratios and other projections. While this due diligence is extremely important when trading stocks, to maximize your potential for return, make sure you aren’t neglecting the importance of technical indicators in your trading arsenal.

 

Technical analysis is a method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security’s intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity.

Technical analysis can be broken down into a number of sub categories depending on the types of technical indicators.

Trend Trading Indicators – Trend Lines

Experienced traders say the first thing any trader should know about a market is the trend. A market can only do three things – it can go up, it can go down, and it can go sideways. Trend Lines are an important trading tool for identifying and confirming the trend direction. They can also help predict areas of support and resistance and help traders spot important chart movements and significant price points.

A Trend Line is a straight line that connects a series of price points. The more price points the line touches, the stronger and more important the trend line is perceived to be. As a general rule, it takes at least three distinct points to confirm a valid trend line.

An Uptrend Line has an upward slope and is drawn by connecting three or more low points on a chart. Each low price point must be higher than the preceding low price point to form the positive sloping line. An Uptrend Line can act as support in a positive trending market. As long as prices continue above the Trend Line, the uptrend is considered intact. If prices break below the Trend Line, it could be an indication that the uptrend is coming to an end.

A Downtrend Line has a downward slope and is drawn by connecting three or more high points on a chart. Each high price point must be lower than the preceding high price point to form the negative sloping line. A Downtrend Line can act as resistance in a negative trending market. As long as price continue below the Trend Line, the downtrend is considered intact. If prices break above the Trend Line, it could be an indication that the downtrend is coming to an end.

Trend Trading Indicators – Moving Averages

Trend lines are the basic indicator of trend, of course, but they are quite subjective, depending on the eye of the beholder. A line that might fit one time frame may not be right for another time frame.So analysts have refined technical indicators that can verify visible trend observations from a price chart.

Perhaps the simplest to understand and most widely used of these technical indicators is a moving average, which traders have used for many years to smooth out erratic short-term price fluctuations to reveal existing trends or situations where a trend may be ready to begin or about to reverse.

The Simple Moving Average (SMA) is calculated by adding prices for a specified period of time and dividing by the number of prices in that period to get an average. Each price is given an equal weight. As each new price becomes available, the oldest price is dropped from the calculation. Many traders use a six day moving average.

Moving Averages and the Importance of Technical Indicators

With a Weighted Moving Average (WMA) more weight is given to the latest price, which is regarded as more important than older prices. If you are calculating a three-day weighted moving average, for example, the latest price might be multiplied by 3, yesterday’s price by 2 and the oldest price three days ago by 1. The sum of these figures is divided by the sum of the weighting factors – 6 in this example. This makes the weighted moving average more responsive to current price changes.

Moving averages have several uses: (1) Reveal trends by smoothing out data when market “noise” produces erratic price patterns, (2) identify points where trends may be ready to begin or end, (3) indicate shifts in market momentum based on the performance of price vs. a moving average or one moving average vs. another.

But most moving averages are lagging indicators. While they are great at identifying past market behavior, they have no predictive value. The higher level moving average is the Predictive Moving Average (PMA) used in the VantagePoint trading software.

With VantagePoint’s PMA, six days are still averaged, but day five and day six are predicted. This minimizes, if not totally eliminates, the lag. Now, the important key here is that the two days of predicted data are derived from the ongoing “under the hood” work of neural networks and intermarket analysis. Vantage Point takes technical analysis to a whole different level.

Moving Averages and the Importance of Technical Indicators

Momentum Trading Indicators

Traders are obviously interested in prices and how they change over time, but they are equally interested in measuring how fast prices are changing – the momentum of the market. Is the velocity of a price trend increasing or diminishing? Does this measurement suggest anything about future price direction?

Momentum is simply the difference between prices over some period of time. What distance does price cover in what amount of time? A price at any given moment – $42 for Microsoft stock (MSFT) for example – is just one price and doesn’t indicate whether prices are moving up or down. If the price rises $2 in one day, a trader now has a distance and a time to compare with previous price movements and arrive at a momentum value.

Momentum and Trend Trading Indicators Combined -MACD

Momentum indicators are often combined with trend following indicators such as the Moving Average Convergence Divergence Indicator (MACD).

The indicator consists of a MACD line, a Signal or Trigger line, and a Histogram. The MACD line is typically calculated as a 12-day Exponential Moving Average (EMA) minus a 26-day Exponential Moving Average (EMA). The Signal line is typically calculated as a 9-day EMA of the MACD line. The difference between the MACD line and the Signal line is represented by the Histogram.

Signal line crossovers are the most common usage of the MACD indicator. When the MACD line crosses above the Signal line, it could be viewed as a bullish crossover and suggests the trend has turned up. When the MACD line falls below the Signal line, it could be viewed as a bearish crossover and suggests the trend has turned down.

While the traditional MACD can be a valuable indicator, it is still lagging. However, the proprietary Predicted MACD in VantagePoint utilizes a 20-day EMA and a 10-day EMA, with a 9-day moving average of the two values as the trigger line to predict trend changes 1-day in advance.

When the Predicted MACD line crosses below from the trigger line, this predicts a possible reversal of the current uptrend to a new downtrend. When the Predicted MACD line crosses above the trigger line, this predicts a possible reversal of the current downtrend to a new uptrend. Another crossover indicator occurs when the Predicted MACD crosses above or below a “zero” line, which is the point where the values of the two moving averages that make up the MACD are equal.

Predicted MACD also defines overbought/oversold conditions in a market when it pulls away from the trigger line, suggesting the price of the market may be due for a correction that will bring the averages back together. Predicted MACD also spots underlying strength or weakness in a market when its movement converges or diverges from the movement of prices.

Trading Profit is Obtainable

The predicted MACD is just one tool, and as any trader knows, to be successful in the markets, you need to employ a confluence of factors. This includes strong fundamental analysis of the stock you want to buy combined with a cutting edge technical analysis tool like VantagePoint predictive trading software.

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