January 20, 2021, 10:19 am

Problems That Many Trade Services May Have

by: The Financial Blogger    Category: Trading
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You can learn some very valuable things while being subscribed to different trade services, but they also come with their fair share of problems. Trading problems are nothing new and every single trader is likely to run into some sort of problem as they embark on their trading journey. You are especially prone to experience problems if you are just beginning your journey into investing; however, no one is invincible and even the most experienced investors can stumble upon issues.

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When you hear about traders who have made a killing in the market and are practically rolling in money, you may become remorseful when you begin to run into problems and not wealth. However, even top traders have run into problems, but the way they dealt with those problems is what made them wealthy. When you enter into the market, expecting success from day one is the worst thing you could possibly do.

Remember the phrase ‘Rome wasn’t built in a day’? Well, that applies to investing and trading alike. It is normal to feel disheartened when you don’t reach immediate success. However, giving up is the last thing you want to do, so don’t lose sight of your hopes or dreams.

Day trading

One problem that is coming increasingly bigger within the trading world is day trading. At first glance, day trading seems like an excellent idea, however, it can be far for that. When people have time to sit at their desk and closely monitor stock trade alerts, then great! Day trading could prove to be a great tool for you.

However, if you’re looking into trading, it is likely that you’re trying to build you wealth and also have a full-time job, so the last thing you want to do in your free time is stay chained to a desk to monitor alerts. Day trade alerts are massively time-sensitive and once they’re gone, they’re really gone. Missing them is a crucial mistake.

Even if you are only 1-2 minutes late, it is likely that you will completely miss the opportunity which in hindsight, is as frustrating as anything. It takes a whole lot of time and effort to stay on top of and follow day trade alerts. On top of that, you will likely deal with overwhelming anxiety while waiting closely for the next alert since you have to be lightning-fast to respond.

Penny stocks

Now, we get to penny stocks. Penny stocks are an automatic red flag for most people, and it is completely understandable as to why. There is a major and fundamental problem with doing trade alerts on penny stocks or micro-cap stocks. They simply do not have enough liquidity to support a trade alert service.

You may be wondering what this means, and in simpler terms, it basically means that since they are such small companies, there really aren’t a lot of people trading them or a lot of people interested in trading them. This poses a huge issue because of the fact that when an alert goes out, a whole heap of people rush to buy a stock like that all at once and because there simply aren’t enough sellers to absorb all of the buyers, the price absolutely explodes.

This then creates a problem because if you aren’t obsessively following the trade alerts, by the time you make it to your desk to make the trade, it is highly likely that the price has already severely skyrocketed due to the fact that so many subscribers have gotten in quicker and already purchased the stock on these micro-companies.

Then, on top of it all, the guy who alerted the trade would then opt to sell his position only to sell to subscribers. Once he sold his position, a huge tidal wave of sell orders would come in from all his subscribers, and the price would plummet right back down in record time. In the end, you will be left holding the bag (along with many other subscribers I’m sure). The price will have gone way down, and you will still be holding the stock at a loss while the “trade guru” had chalked up a profit and boasted this as another successful trade.

Lack of research

Staying up to date and educated in any situation is highly recommended. So, the biggest problem trade alert services seem to have is that they haven’t tested their trading strategies against historical data. For any given trading strategy, there are years of proof that this strategy worked over and over and was successful, however, some trade alert services have never done any research about how their trading strategies would have held up historically.

This is a massive problem because different trading strategies are optimal for different market conditions and some trade alert services might have periods of success, but can they hold up for the long term through various market conditions? Doing historical research is a great way to account for that, but most services don’t do that which makes it largely unsuccessful in the long run.

How Mindful Trader can help

Just when you though all of these problems were likely to create a gloomy outlook for traders, Mindful Trader comes to save the day. Unlike day trading, Mindful Trader is a swing trade alert service that relies on an entirely different approach compared to every other trade service. All of the trade alerts from Mindful Trader are based on a historical quantitative edge that was uncovered from years of stock market price research.

With Mindful Trader, you don’t have to sit in front of a screen for large amounts of time to monitor the stock market, instead, you can enjoy a relaxed approach. Eric Ferguson from Mindful Trader understands the stock market in an in-depth way and was once using the same trade alert services that are still around today, however, when he found little success, he took it upon himself to do better.

If you’re looking for a mindful, stress-free, well researched, and data-driven trade alert service, look no further than Mindful Trader. Happy trading!

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