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

AI Blog Image

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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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 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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2017: Another Year of Buying Dips and Selling Rips

January 20th, 2017 by VantagePoint Software

Buying Dips with VP

This year promises to be, well, a bit wild. Volatility can be expected not just here in the U.S. market, but all over the globe. So when it comes to picking an investing strategy for 2017 “buying dips and selling rips” could prove to be a profitable one.

Already we’ve seen the pound fall, equities slide and gold climbing on concerns U.K. Prime Minister Theresa May is prepared to lead Britain out of the European Union’s single market and act as a guide for other countries that could break from the bloc. At least that’s what President-elect Donald Trump suggests as a possible outcome. Continue reading 2017: Another Year of Buying Dips and Selling Rips

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Back to Basics – Trading 101 with VantagePoint

August 17th, 2016 by VantagePoint Software

trading 101

It’s back to school season and for many traders, a little trading 101 is all it takes to start schooling the markets. We’ve compiled the top 10 ways VantagePoint Trading Software can help traders gain a major edge and move to the top of their class.

#1 Learn your ABC’s

Technology is rapidly changing the atmosphere for traders. As we become more dependent on data and technology, traders have to be sure their strategy and tools are keeping up. VantagePoint uses Artificial Intelligence through a Neural Network process to provide traders with forecasts that are: Accurate, unBeatable and Consistent. With these ABC’s on your side, your results will improve drastically.

#2 Get to the Head of the Class

What separates the 90% of unsuccessful traders from the 10% who are profitable? Unsuccessful traders REACT to the market whereas successful traders ANTICIPATE the market. VantagePoint’s ability to forecast market direction and strength with up to 86% accuracy puts our users at the top of their trading class.

#3 Don’t Get Bullied Out of Trades

The market can be fickle and completely irrational. Much like the bully in class, it can take advantage of traders who lack the necessary confidence to stand up for themselves.

So how can traders become more confident?

By trading with consistently accurate data that doesn’t let them down.

With VantagePoint at their back, traders can rest assured they are making the right decisions with their money.

#4 Paint the Whole Picture

Much like grade school – trading is one part art and one part science. Mastering your tools and your technique are equally important. However, trading without the full-picture can be dangerous. VantagePoint uses a full global market approach to ensure traders have all the information they need to make profitable trading decisions.

#5 Rely on your Study Buddies

You don’t have to take on the markets alone. The world-class support team at VantagePoint is dedicated to your success. From 24/7 access to the Customer Learning Center, a dedicated account manager and various ongoing customer webinars, we’ll be here when you need us most. Whether it’s a phone call, email, remote login session or a quick live chat on our website – we’ll respond to your every need.

#6 Be On Time

When it comes to the markets, timing is EVERYTHING.

If you’re showing up late, you’ll almost never get ahead.

Tools and strategies that rely on outdated market lagging indicators will consistently have you chasing trends that have already started.

VantagePoint’s proprietary market leading indicators put traders on the right side of trends BEFORE they take off.

#7 Enjoy Recess Time

The best traders around will tell you – just because you trade does NOT mean you need to be stuck inside, in front of your computer. VantagePoint makes your trading simple and clear, giving you more time to enjoy what really matters in life.

#8 Make New Friends

Much like school, trading can be more fun with friends. Read what just a few of ours have to say about VantagePoint…

“I exited two futures trades early this morning for a whopping 85% total gain and increased my small trading account by 35.2%. Your help has been invaluable to me.” – Dale M.

“At this point I’m enjoying about 75% profitable trades. I’m able to cut losers quickly, and let the winners run. I am getting to feel very comfortable with VantagePoint!” – Tom H.

#9 Ace Your Tests

How does you trading report card look? Some of the most prestigious publications in the industry have put VantagePoint to the test.

See what they had to say…

“VantagePoint is intuitive, easy to use, and offers traders unique leading-type technical indicators. Most analysis software operates by plotting only current and historical prices. VantagePoint is different in that it was designed to tell you tomorrow’s expected high and low.” – Stocks & Commodities Magazine

“VantagePoint offers the trader a number of new indicators that, unlike the lagging indicators that are prevalent in most trading programs, are instead designed to be leading indicators.” – Traders Magazine

#10 Advance to the Next Grade

Trading Stocks? Forex? Futures? ETFs? Options?

Quite possibly the best part of using VantagePoint is that it works for ALL markets, regardless of your trading style. When you’re ready to diversify into new markets or add new sectors, our team will be here.

Click the image below to request a free market forecast for yourself!

VantagePoint Software Forecast

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Become a Better Trader in 10 Minutes

June 24th, 2016 by VantagePoint Software

If you think you’re too busy to find profitable trades, then ask yourself if you have 600 seconds. Because if you’re ready to become a better trader, that’s all it really takes.

becoming a better trader

That’s right, in ten minutes or less, you can drastically improve your odds of trading success.

With the help of VantagePoint Trading Software, traders can invest 10 minutes per day to maximize their success in the markets. While the program may be using literal rocket science behind the scenes (see: artificial intelligence), the execution is actually quite simple. Because the more complex a trading system is, generally speaking, the more confusing it is to understand.

Below, we outline the 3 simple steps to utilizing VantagePoint’s Artificial Intelligence software to become a better trader.

Step 1: Build a Portfolio of Stocks

The financial sector took a beating in early 2016. Market volatility was high, low oil prices hurt banks with exposure to energy loans and the political race stirred the idea of Wall Street regulation. After finally rallying back from the early 2016 lows, the surprise Brexit “yes” vote sent things spiraling again.

Of course, not all financial stocks will rally (or fall) at the same pace or at the same time so it’s important to look at different markets at different times and trade where there is an opportunity.

Maybe you have a thing for healthcare stocks. Or perhaps you only like to take long positions in tech stocks. Maybe you want to see what’s happening in the Futures markets? (hint – not a good day for that!)

VantagePoint forecasts for over 2000 stocks in 5 different countries, 67 futures markets, various ETFs and over 10 different Forex pairs. Creating different trading portfolios for different sectors and different trading styles is key and can reduce the time required for daily market analysis. Save as many portfolios as you’d like, name them as you please. When you’re ready to analyze your portfolios move to step 2.

better trader portfolio

Step 2: Scan your Portfolios for the Best Trading Opportunities

So you have decided you are bullish on the financial sector and want to take a long trade in a stock that has strong upside potential. It can be done in seconds. Using the IntelliScan® you can quickly identify advantageous trading conditions in charts or reports that are open in a portfolio.

IntelliScan® indicators can help you quickly narrow your focus to only those markets that meet your specific criteria. In this example, VantagePoint scanned 110 stocks and found four that are good candidates for a long trade by filtering for recent crossovers to the upside in the short, medium and long-term trend. The additional filters can be added that provide extra confirmation that these four stocks are likely to head higher in the next few days.

better trader Intelliscan

Step 3: Use the Charts to Confirm the Trade

Now that you’ve found potential long trades in the financial sector, it’s time to analyze your charts. Unlike traditional market lagging indicators, VantagePoint’s Predicted Moving Average doesn’t simply look at past price data, it forecasts 1-3 days in advance, alerting you to impending trend changes before they occur.

As you can see below, when the blue line crosses above or below the black line, a trend reversal is about to take place. Once the reversal occurs, the trend is likely to continue until the next predictive crossover takes place. With this “jump” on the markets, traders see a huge improvement in their timing and direction, ultimately leading to more profitable results.

better trader Intelliscan

Another powerful forecasting tool within VantagePoint is the Predicted Neural Index. This green oscillator forecasts the short-term strength or weakness of a trend. When the Neural Index has a value of 1 the market will likely move higher over the next two days. When it is at a 0 the market will likely move lower over that time period. VantagePoint’s Predicted Neural Index can be used in conjunction with its Predicted Moving Average crossovers to give you additional confirmation, which will give you more confidence to enter or exit a trade at the onset of a trend reversal – often days before other traders even figure out what’s going on.

better trader confirming trades

Not a bad use of 10 minutes, huh?

Sort, filter, analyze, confidently take positions and then move on to the rest of your day. Becoming a better trader is as simple as that. VantagePoint Software Forecast

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Infographic – Grading Common Trading Strategies and Tools

April 28th, 2016 by VantagePoint Software

Trading Infographic

It’s report card time! After the NFL Draft, the annual exercise of pundits immediately distributing grades takes place to express their “expert” opinion on which teams maximized their value and filled their roster holes.

While most (okay, probably all) of you don’t own an NFL team, you ARE a trader looking to increase your profitability in the markets. Well, you’re in luck. The following infographic grades different tools, trading strategies, and systems to help you take your trading to the “Big Game.”

The Grades – Common Trading Strategies and Tools

Trading Strategies

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Make Money in a Declining Market

January 29th, 2016 by VantagePoint Software

It’s one of the most common questions we get. “How can I make money when the market is going down?”

make money

 

 

The truth is simple: there’s no such thing as a bad market. There is, however, bad information and if your current trading strategy is lagging the market, well then it’s going to be very difficult if you don’t see these declines coming.

That being said – our customers are finding plenty of opportunities to make money in these down markets. We share their strategies below.

Here are two ways to make money in a declining market:

Selling Short

Smart traders know that the market is a two-way street and that you can trade from the short side. VantagePoint’s forecasts provide insight 1-3 days in advance. With that information, traders can take a short position and actually make money in a declining market.

However, not every trader is comfortable with this technique. No worries, there’s another way.

Go Long on Inverse ETFs

“For every action, there is an equal and opposite reaction.”

When a market is declining, there are inverse ETFs that will be going up. VantagePoint makes it easy to scan for opportunities and find these opportunities ahead of time.

Are you feeling anxious in the market? Why not adapt a strategy that has been consistent and accurate at forecasting markets and helping traders make money for over 25 years.

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Swing Trading Strategies

December 16th, 2015 by VantagePoint Software

What is swing trading anyway?

SWING TRADING STRATEGIES

This technique is often used by stock and options traders and tends to be more long term than day trading. Swing traders seek to capture explosive moves in the market, up or down, for profit. When the swing slows, they exit the position. As many swing traders will tell you – the trend is your friend.

If you break down the term swing trading into its components, the first part is a swing. No matter the technique, if there’s not a swing of some degree after you buy, then you will not be able to sell at higher prices and vice versa. Trading is the next part of the term and you shouldn’t take this lightly. There is a big difference from traders and passive investors. Traders don’t buy and “hope.” They never get married to a trade regardless of what they hear from the media, friends, relatives or whomever.

Swing trading can be broken down into three key phases:

1. The Development Stage

2. The Recognition Stage

3. The Bandwagon Stage

Knowing how to identify each stage at the optimal time and how to react during those stages is key. Here are some tips on improving your swing trading skills and increasing your profitability.

The Swing Trading Development Stage

The first stage is the œdevelopment stage.  Swing traders want to be able to identify an opportunity early on so they can get into position during the development stage. While this is obviously an optimal situation it is often difficult for traders to implement. Why? Because on a chart, this often looks like a congestion or balancing zone.

Recognizing Profits in Swing Trading

The second stage the recognition stage. This is where you can begin to see a surge in price, either upwards or downwards. Those fortunate enough to have entered during the development stage are often challenged with remaining in a profitable position for a longer period of time. The idea is to capture more of the swing, not to lose confidence and get out while leaving money on the table.

Swing Trading Exit Strategies

Finally, there is the bandwagon stage. This stage is usually determined by a plethora of market specific news reports mentioned on TV.

The bandwagon stage is where many people lose money when investing, especially when investing without a defined plan. Now, that is not to say that those who enter the market at this time are going to lose, but all too often the trend is over by this time.

Timing is Key for Swing Trading

If you’ve already picked up on the common trend here (see what we did there?) timing is everything for swing traders. It’s near impossible to be successful in any of these 3 stages if you don’t have a system or a strategy for knowing what may happen in the market.

Meet your solution.

VantagePoint Trading Software has been utilizing Intermarket Analysis with predictive technologies to forecast market strength and direction for the past 25 years. This proven technology helps swing traders identify developments before they happen, gives them the confidence to stay in position longer and warns of when a trend may be coming to an end. With accuracy documented up to 86% for some markets, this technology has changed the game for swing trading as it provides consistent and accurate data for traders.

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