TradeStops is an investment analysis software that claims to help novice investors earn massive profits from the market. Find out how it works today in our review.
What Is TradeStops?
TradeStops is investing software that promises to time the market, helping users maximize gains and minimize losses by selling low and buying high.
The software is being marketed heavily to novice investors online. TradeStops is marketed in a way that makes it seem like anyone – even novice investors – can earn a lot of money by timing the market. Investors are told they can expect large profits “with less risk” than traditional investment tools.
One bold claim made by TradeStops, for example, claims you could have doubled the ROI of the S&P 500 over the last few years:
“Using TradeStops alerts on when to get into and out of the market, you could have beat the S&P 500 Index by 2 to 1,”
explains the official TradeStops website.
“TradeStops helps you make more and riskless.”
Most investment experts will tell you that trying to time the market is a bad idea. Nevertheless, TradeStops claims to make it easier than ever for users to time the stock market, helping them buy stocks and sell stocks at the right time.
Let’s take a closer look at how TradeStops works – and whether or not you can really maximize your gains with the TradeStops software:
How Does TradeStops Work?
The TradeStops software uses proprietary algorithms to recommend when to buy and sell certain stocks. This is the four-step process investors can use to maximize gains and minimize losses, according to the TradeStops team:
Step 1) Decide What to Track: After signing up for TradeStops, you can sync your portfolios with the software manually. You can enter the stocks you already own, for example. Or, you can setup a watchlist of stocks you are interested in. The software can also recommend which stocks to watch. After adding stocks to the software, TradeStops will automatically tell you “how much to buy and what to avoid”. Then, the software will monitor the stocks for you daily.
Step 2) Receive TradeStops Alerts: You’ve added stocks to your TradeStops account. Now, you need to know when to take action. When do you buy and sell your chosen stocks? TradeStops will answer this question in order to maximize your returns. “Based on our proprietary algorithms and your personal settings, we alert you via text, email and/or online with recommendations when action is required.”
Step 3) Start Trading: The next step is to start trading based on the recommendations offered by TradeStops. “Cut your losses sooner, and stay in winners longer to maximize your earnings,” explains the official website. The goal of the software is to help you make smarter decisions based on proven data – not your gut.
Step 4) “Increase your Profits”: The final step in the TradeStops investment system is to increase your profits. Traders are advised to “choose the right investments” and “select the right amount to invest in each”. Using TradeStops, investors can learn how to “get in at the right time [and] get out at the right time [to] make more money.” Overall, the system claims to optimize your portfolio to maximize profit.
Overall, TradeStops claims their trading software will beat your own stock tips, recommendations, and gut feelings “97% of the time”.
How Does TradeStops Pick Stocks?
The main goal of TradeStops is to identify when to buy and sell a certain stock. The company claims to use proprietary algorithms to identify the best time to buy and sell a stock for maximum returns and minimal risk.
Oddly, TradeStops doesn’t go into great detail about how its algorithms work. The website vaguely mentions things like:
- “Remove your natural biases that cause disastrous mistakes”
- “Produce the consistent ability to identify the potential to unlimit portfolio gains”
The website is filled with sentences like this.
The core of the TradeStops program, however, is based on the Stock State Indicator and Stock State Indicator Alerts. The TradeStops proprietary algorithm assigns each position in your portfolio a Stock State Indicator (SSI). This SSI reflects the perceived future movement of the stock. The SSI might recommend that you sell now, for example, or buy more.
TradeStops also has a Risk Rebalancer feature that allows you to evaluate your portfolio for potential sources of risk. Are you too heavily exposed to a particular sector? The TradeStops Risk Rebalancer will tell you. Plus, with a single click, you can rebalance the risk in your portfolio using this tool.
Overall, there are five alerts provided through the TradeStops Stock State Indicator Alert system, including:
- Entry Alerts
- Exit Alerts
- Alerts for Trending Up, Down, or Sideways
You will receive an alert based on the expected future movement of a particular stock. Users can also setup their own customized alerts – say, when the price of a stock drops below a particular dollar amount.
Other tools available through TradeStops include:
- Stock Analyzer
- Position Size Calculator
- Portfolio VQ Allocation
Plus, as a member of TradeStops, you will receive access to regular investor newsletters. The newsletters feature the latest news from the world of investing, including important market movements you need to be aware of.
TradeStops tracks equities, funds (including mutual funds and some ETFs), indices, and options traded on U.S. stock exchanges. The software only tracks equities on the Toronto, London, German, and Australian stock exchanges. Certain penny stocks, OTCs, and pink sheets are also tracked using the software. TradeStops does not support bond tracking.
TradeStops has three different subscription plans ranging from $19 to $83 per month:
Basic: Core Tracking
- $19 per month (billed annually at $228 per year)
- Includes 200 alerts
Plus: Basic + Advanced Alerts And Tracking
- $49 per month (billed annually at $588 per year)
- Includes 300 alerts
- Includes advanced alerts
- Includes Stock State Indicators
Premium: Basic + Plus + Portfolio Analysis
- $83 per month (billed annually at $996 per year)
- Includes 400 alerts
- Includes advanced alerts
- Include Stock State Indicators
- Includes Asset Allocation, Portfolio Volatility, and Risk Rebalancer analysis tools
TradeStops claims that the Premium $83 per month package is the most popular option. All of the above packages are available to be purchased online through TradeStops.com.
TradeStops is marketed to investors based on the slogan “make more and riskless”. Investors are told they can expect to earn better gains and more profit by following the investment advice provided by TradeStops. The TradeStops software uses proprietary algorithms to determine when to buy a stock and when to sell stock to maximize your gains. Investors can reduce guesswork and generate better turns on their investments.
As with any investment tools promising high ROIs, you should be wary about TradeStops. No investment software is going to work 100% of the time to recommend effective trades, and you should take the advice provided by TradeStops with a grain of salt.
Nevertheless, it’s up to you to determine whether or not TradeStops is the right stock trading software for you.