As a seasoned intraday active trader you know the importance of developing and working your plan so that you stay out of the danger zone where you risk losing your investment capital and possible your account.
You’ve probably read most of the books out there and will work hard to make sure you make at least some money on every trade.
But do you follow the right rules at the right time to ensure you are always protecting your capital in balance with trading for profit? According to Investopedia, active traders can fall into potholes when they don’t follow these 20 rules that keep you safe, disciplined, in control and as a result successful.
Very wise advice to follow if you are an Active Intraday Trader who intends to be stay active for the foreseeable future.
But some of these rules are really hard to follow without a net: every trade can feel like walking across a canyon on a tightrope.
These rules are supposed to make your trading safer… but you are still on a tightrope… one wrong move and it’s over.
Now some people like that adrenaline rush, especially the part where you make it to the other side, intact, and better off for having taken the risk.
What if you could reduce some of that ‘one wrong move’ risk and still get the adrenaline high from making it safely to the other side?
There is a solution. It’s called DeepStreet EDGE and it gives you something that very few traders have at the moment: predictive insight into where the DOW and stocks are moving to in the next 3 minutes to 3 hours.
How? Artificial intelligence and Machine Learning. Yes, a supercomputer is now able to look at thousands of news stories daily, that have yet to be released to the web, so you know IN ADVANCE, which news alerts are about to move stocks and the indices.
It used to be that only big hedge funds and investment banks had the cash to invest in data scientists to use artificial intelligence. But today, even the little guy has affordable access to a platform that does a lot more than just predict price.
When you can predict the future before news is priced into a stock, you see opportunities and take advantage of them before most people even finish reading a single news story, nevermind thousands of stories.
What’s the new game? It’s called DeepStreet EDGE and it uses Machine Learning and proprietary algorithms to interpret how news will affect the price of the stock, which direction it will move, by how much in the next 3 minutes to 3 hours and then it predicts the level of confidence it has about it’s own prediction.
Trading with that kind of advanced notice is like adding a bridge under your tightrope: you are not going to fall very far, and you will get to the other side of that trade intact.
As a confident trader, you have tried and tested trading strategies and a mindset that lets you enjoy the spoils of your efforts. DeepStreet EDGE takes your trading to a new level of satisfaction and reward.
So how does Investopedia’s rules to live by as an active trader change if you have DeepStreet EDGE supporting your trade selection and trade timing?
Let’s point to the most obvious risk reducer first: The more you rely on history to attempt to predict the direction of the market, the more rules you need. While you’ve relied on historical trends for years, history is a poor predictor of future price, movement or results.
We don’t drive forward looking in the rear view mirror.
Or as Wayne Gretzy famously said…
DeepStreet EDGE helps you do what Gretzky does: know where the stock is going to move next, by how much so you can hit the right trade at the right time.
How’s that for risk reduction.
So let’s see how DeepStreet EDGE changes the risk/reward of Investopedia’s rules so you can simplify your trading, reduce your risks and get to results faster.
- Follow Your Discipline – Investopedia says “You can’t trade without discipline and self-control.” That’s true. It also helps to have a system that is patently obvious what to do and what not to do, for those days when taking a flyer seems like a good idea. If you know discipline and you are not best friends, then a prediction engine like DeepStreet EDGE is going to be a far better fit for your trading style. When price and news momentum are not going your way, it shows you a bright yellow caution sign, which we suggest means don’t trade. Now that is easy to follow.
- Lose the crowd – Investopedia says “Long term profitability requires positioning ahead of or behind the crowd, but never in the crowd because that’s where predatory strategies target. Stay away from stock boards and chat rooms.” Absolutely, but how are you supposed to know where the crowd is? You need a reliable trade selection system that keeps you ahead of the crowd so you’re in and out before the crowd makes its play. You see exactly which news alerts are worth trading and what to ignore, at a glance. So there’s no need to go fishing for ideas from people that have no true predictive ability.
- Engage your trading plan – Investopedia says “Update your trading plan weekly or monthly to include new ideas and eliminate bad ones. Go back and read the plan whenever you fall in a hole and are looking for a way to get out.” Yup. Still need this rule when using DeepStreet EDGE.
- Don’t cut corners – Investopedia says “Your competition spends hundreds of hours perfecting strategies and you’re in for a rude awakening if you expect to throw a few darts and walk away with a profit.” So do you want to trade more, or research more? DeepStreet EDGE’s perfected algorithms have a 70% accuracy rate predicting the direction of stocks. No need to spend hours finding trades. Spend the time using your trading strategies before your competition even knows what to trade.
- Avoid the obvious – Investopedia says “Profit rarely follows the majority. When you see a perfect trade setup, it’s likely that everyone else sees it as well, planting you in the crowd and setting you up for failure.” Traders who use lagging indicators get stuck in the crowd. Artificial intelligent trading, like DeepStreet EDGE means you find the right trade at the right time at least 20 minutes before the majority even gets any news about a stock, never mind figures out what how to trade the news.
- Don’t break your rules – Investopedia says “You create trading rules to get you out of trouble when positions go badly. If you don’t allow them to do their job, you’ve lost your discipline and opened the door to even greater losses.” This is true no matter what advantage you’re using. DeepStreet EDGE makes those trading rules immediately obvious so they are hard to miss.
- Avoid market gurus – Investopedia says “It’s your money at stake, not theirs. Keep in mind that they’re probably talking up their positions, hoping the excited chatter will increase their profits, not yours.” You want actionable trading ideas. With DeepStreet EDGE, it’s artificial intelligence, the supercomputer sifting through thousands of news alerts so you see only high probability trading ideas, not market gurus.
- Listen to your intuition – Investopedia says “Trading uses the mathematical and artistic sides of your brain so you need to cultivate both to succeed in the long run.” Absolutely true… and your intuition can get crowded out with too much input pulling you in multiple directions. With advanced knowledge of where a stock or an index is moving next, you can hear your intuition. No need to listen to the overwhelming masses.
- Don’t believe in a company or a product – Investopedia says “If you’re too in love with your trading vehicle, you give way to flawed decision-making. It’s your job to capitalize on inefficiency, making money while everyone else is leaning the wrong way.” The only way to not lean the same way everyone else in a trade, is to know in advance, before the masses, that a price move is about to happen. That is the perfect time to capitalize on inefficiency. To do that you have to believe in yourself first then use your trading edge tool to take the right action. If you would like to try trading with that kind of advanced knowledge, you can get 30 day complimentary access by clicking here.
- Get your personal life in order – Investopedia says “Whatever is wrong in your life will eventually carry over into your trading performance. This is especially dangerous if you haven’t made peace with money, wealth and the magnetic polarity of abundance and scarcity.” So true. Getting an edge lessens the risks you take. Then you know you’re trading for the right reasons, not just to prove to anyone that you can do that highwire, “no net” act. You have to ask yourself what is more important: getting rewarded for your trading strategies or proving you can walk the tightrope.
- Don’t try to get even– Investopedia says “Drawdowns are a natural part of the trader’s life cycle. Accept them gracefully and stick to the time-tested strategies you know will eventually get your performance back on track.”Being able to calculate risk BEFORE you trade means you have to speculate about which direction the market is about to move. DeepStreet EDGE shows you plainly, at a glance, so you can see the trend about to materialize, and either capitalize on it, or wait till the retrace occurs, then get in. That’s how you stay on track without taking a hit.
- Pay attention to early warning signs – Investopedia says “Big losses rarely occur without multiple technical warnings. Traders routinely ignore thosesignals and allow hope to replace thoughtful discipline, setting themselves up for pain.” This rule is all about discipline winning over emotional needs to feel ‘right’. The disciplined trader listens to their emotions, and then checks their indicators to validate the direction or rethink their hunches. Regardless of whether you bank on historical patterns or want to trade with predictive artificial intelligence, paying attention to what the indicators tell you is job one.
- Don’t confuse execution with opportunity – Investopedia says “Traders make up for insufficient skills with expensive software, prepackaged with all sorts of proprietary buy and sell signals. These tools interfere with valuable experience because you think the software is smarter than you are.” So when using artificial intelligence to guide your trade selection, is that supercomputer smarter than you are? Let’s be frank: yes and no. Rule 13 still applies. The confidence rating of a particular news story in DeepStreet EDGE is there to guide you, not to tell you what to do. Bottom line, it’s your money, your decision. The tools just help you narrow down your options so the probability of your decision being successful is higher.
- Play with your head, not over it – Investopedia says “It’s natural for traders to emulate their financial heroes but it’s also a perfect way to lose money. Learn what you can from others, then back off and establish your own market identity, based on your unique skills and risk tolerance.” Great advice. Use your tools. Then make your own decision that fits your plan to preserve and maximize your capital.
- Forget about the Holy Grail – Investopedia says “Losing traders fantasize about secret formula that will magically improve their results. In reality, there are no secrets because the road to success always passes through careful choice, effective risk management and skilled profit taking.” While artificial intelligence gives you a leg up other traders don’t have because it predicts the future and others are using historical trends, it does not replace making smart choices.
- Ditch the paycheck mentality – Investopedia says “We’re taught to grind through the work week and then pick up our paychecks. This pay-for-effort reward mentality conflicts with the natural flow of trading wins and losses during the course of a year. In fact, statistics indicate that most annual profits are booked on just a handful of days the market is open for business.” This investor mindset is essential even when you trade with artificial intelligence. The difference between using traditional indicators and DeepStreet EDGE is that theopportunities for success are immediately obvious no matter what direction or pattern is occurring in the market. So your success may run contrary to the statistics when using predictive LEADING indicators such as those in DeepStreet EDGE.
- Don’t count your chickens – Investopedia says “Feel good about a trade that’s going your way but the money isn’t yours until you close out. Lock in what you can as early as you can, with trailing stops or partial profits, so hidden hands can’t pickpocket your success at the last minute.” Preserve your capital. If you have a trading plan and follow your goals using a trading platform that shows you things are moving against you, before they actually do, your chances of seeing that profit in your account increases dramatically.
- Embrace simplicity – Investopedia says “Focus on price action, understanding that everything else is secondary. Go ahead and build complex technical indicators but keep in mind their primary function is to confirm or refute what your trained eye already sees.” It’s not historical patterns that move price. News and momentum is what moves price. DeepStreet EDGE points you to exactly those stocks where news is ABOUT TO move price, so you can get in and get out, BEFORE momentum is lost.
- Make peace with losses – Investopedia says “Trading is one of the few professions where losing money every day is a natural path to success. Every trading loss comes with an important market lesson, if you’re open to the message. In other words, learn as much from your mistakes as you do from your wins. Inside DeepStreet EDGE, the trading rules are easy to follow before you get into a trade and immediately after you get out. Review, review, review.
- Beware of secondary reinforcement – Investopedia says “Active trading releases adrenaline and endorphins. These chemicals can produce feelings of euphoria even when you’re losing money. In turn, this encourages addictive personalities to take bad positions, just to get the rush.” How does this work? Dopamine, another brain chemical, builds up in your body when you are anticipating your trade. That’s what feels exciting. It is an addictive feeling. But dopamine falls off just after you make the trade, before you know how it turns out. The excitement fades away before you get results. And then you want more. If you know that those healthy brain chemicals often affect your decision making making you trade more than is safe, then you know it’s important to work with tools that keep you focused on a good outcome, smart and present, rather than ruled by dopamine.
What’s Your Best Next Step?
If you like to analyze your trades, follow your plan and work with the latest innovation so you trade safely, securely, often with a higher probability of profits, then artificial intelligence may be the right direction for you to take next.
The best way to determine if this is a good strategy for you is to try out the platform for yourself. EOTPRO is offering a complimentary 30 day pass to DeepStreet EDGE. You get full platform access to select your trades and time your entry, you also get full training by joining the trading club room that runs Monday to Friday, for the first two hours of the US trading day.
Want to understand the technology behind DeepStreet EDGE and how it differs from traditional, historical lagging indicators?
DeepStreet EDGE is for experienced, active traders who trade options, futures, stocks and indices.
DeepStreet EDGE is a predictive analytics tool, not attached to any brokerage’s trading platform. Each subscriber has to have his or her own brokerage account.
EOTPRO is not a licensed broker dealer. We do not provide trade recommendations. All trades are selected and made at the sole discretion and responsibility of the subscriber.