First, I LOVE to see new features like Trade Ideas. But Iâm deeply frustrated because I havenât been able to turn it into money yet, though I have had some luck with Velocity & Forces. These technical videos are great, but you also need videos showing HOW TO MAKE MONEY WITH THEM. If I understand this new Trade Ideas utility correctly, here is how I should go about making money:
1. Study the list of pre-defined strategies
2. Back test a few that look promising
3. Set it up to run in real time
4. Out pops a stock
5. Link to a chart, and news. Why did this stock pop up? Try to rationalize it.
6. Go to Yahoo Finance to see what the analysts think of it. Is this really a stock I want to be holding (or average down into) if it suddenly starts to head south?
7. OK, letâs assume it passes my objective sanity test. Pull up the Order entry window and get ready to execute a buy
8. Pull up Velocity and Forces
9. Wait for a spike in BOTH the Velocity & Force gauges, to find the optimum entry point
10. Hit the âbuyâ button
11. Immediately open a new Order entry window and enter a predefine an exit strategy
12. Send the sell (exit) order, and keep your fingers crossed
Did I get all that right? Seems like an overly complicated way to make money. Only die-hard guys like me would ever consider going through all that to make a trade. To me it looks like this whole trading system needs to be better integrated, for smoother execution. But Iâll admit that once you get that screening tool figured out, it should go much easier on subsequent trades.
An area that Iâm not too anxious to venture into is the concept of developing my own screening parameters for Trade Ideas. Thatâs a huge nebulous task that looks like it will be hard to get a handle on. Somebody please tell me which predefined strategy has the highest rate of success, so I donât have to hurt my head ding the development work myself.
One big problem I can see already - those wonderful exit strategies in Trade ideas donât really work for a trader that uses ELITE, now do they? Not even the advanced features in Eliteâs order entry window can be programmed with all those wonderful parameters and indicators available in Trade Ideas and Velocity & Forces. (though some of them certainly can, especially the more important ones, like trailing stops) So if I play with these new tools any more, what Iâll be coming up with is a trading strategy that may not be able to be fully implemented with Eliteâs existing order entry tool. In a way I kind of feel like you Scottrade guys are teasing me with trading capability that isnât yet fully available/practical. (Though I know your intentions are good) Letâs face it, at the current time Velocity & Forces and Trade Ideas canât even be programmed to set off an audible alarm when an ideal trading opportunity comes along, right? Donât misunderstand though, I really like the new tool. I just wish you would finish the job, because I donât want to watch the screen every second that the market is open.
(You set up this web site to get some serious feedback, right? So now you know exactly whatâs on my mind.)