You can benefit from a platform that can help you keep up with the rapid pace of today’s trading market whether you’ve been trading for years or are just starting out.
TradeSmith’s Tradestops software is made for exactly such an occasion. You should be alerted when something major occurs that must be considered. It uses optimization methods to keep an eye on stocks.
However, you might wonder if Tradesmith is just another scam that claims to help you make big money with their program or purchasing the tools they recommend.
To help you make a more informed decision, I have thoroughly researched the Tradesmith so I can tell you more about it.
As a disclaimer, I’m not affiliated with Tradesmith. It means I’m not paid to write this review. So you can rest assured that you will get an honest and unbiased review from me.
At the end of this review, I’ll also tell you the best alternative to Tradesmith that has enabled me to make a full-time passive income online.
What is Tradesmith?
TradeSmith created TradeStops in addition to many other products and services.
In the years since its formation in 2011, the Maryland-based firm headquartered in Baltimore has added a variety of helpful features, such as those for risk management and portfolio analysis, among others.
It provides resources that can help investors increase their wealth, sharpen their investment approach, and take advantage of market opportunities.
TradeSmith offers the following products:
- Ideas by TradeSmith
- Crypto by TradeSmith
- TradeSmith Decoder
- TradeSmith CoPilot
While they offer insightful research and analysis of the stock market, their services are priced differently and focus on different facets of the industry.
You will find many positive comments about TradeSmith on the Internet.
Who is The Founder of TradeSmith?
Richard Smith founded TradeSmith and later sold it to an unnamed financial publisher for a price that has not been disclosed.
An Overview Of TradeStops And Ideas From TradeSmith
Dr. Richard Smith, an academician, and entrepreneur, developed TradeStops and Ideas by TradeSmith, two complementary but separate services.
Active investors who want more control over their stock holdings should think about these strategies. In order to assess the appropriate level of stock market risk and portfolio diversification, past market volatility is studied.
A product by TradeSmith, TradeStops is a web-based service that can only be accessed through a web browser, so it can’t be used on smartphones or computers. Medium- and long-term investors, as well as novice traders, will find the platform accommodating.
The primary goal is to equip the reader with everything necessary to efficiently manage a stock portfolio and strike an appropriate balance between risk and return in light of the volatility of the market.
The platform allows you to monitor stocks, mutual funds, indices, penny stocks, over-the-counter stocks, certain exchange-traded funds, and options traded in the United States. It also works with shares traded on the stock exchanges in London, Germany, Australia, and Canada.
The solution’s alerting feature is powerful and easy to use, and it will notify you whenever certain settings in your account are modified. What really sets it apart, though, are the notifications it provides.
The trailing stop percentage is automatically adjusted based on market volatility with the help of a proprietary algorithm in the platform-specific VQ (Volatility Quotient) alert. There are a variety of other alerts available, such as option alerts, price targets, entry signals, gain/loss alerts, and more. In addition, TradeStops gives its customers access to numerous charting options.
Throughout its history, the website has aided more than 50,000 investors in keeping tabs on a total of over $20 billion in portfolio value.
Volatility Quotient And Stock State Indicator
A portfolio’s risk is determined by TradeStops using a combination of the volatility quotient (VQ) and stock state indicator (SSI) (SSI). The VQ assigns a percentage value to a stock’s volatility to help traders decide how far below the current price they should set a trailing stop loss order. In addition, it determines the maximum loss that can be sustained by a stock when using trailing stops. If a stock has recently triggered an entry or exit signal, the SSI will show a green, yellow, or red bar.
All stocks in TradeStops-monitored portfolios will now produce VQ and SSI data automatically. They are the backbone upon which the platform’s more sophisticated risk management features are built.
Position Size Calculator
An investor’s risk tolerance, along with the results of VQ and trailing stop calculations, are used by the position size calculator to determine how much money should be invested in each stock. Determining one’s comfort level with risk in a given transaction is a necessary precursor to using the calculator. Both the maximum investment amount and the first stop loss value are shown in the final output.
TradeStops also provides an easy-to-understand explanation of the calculator’s findings, so you can see how it arrived at its conclusions and how adjusting the inputs might affect the result.
Asset Allocation And PVQ Analyzer
TradeStops now features an asset allocation tool in addition to its numerous portfolio analysis options. Traders can see how their money is allocated across industries and markets with the help of asset allocation software.
The PVQ evaluator classifies holdings not by industry but rather by VQ, or risk. This resource allows traders to quickly evaluate the safety of their holdings. In addition, investors with risk-hazard portfolios can benefit from using this tool across multiple portfolios.
By spreading their VQ across multiple assets, investors can reduce their overall VQ with the aid of the risk rebalancing tool. A reduction in overall risk can be achieved by adjusting the fraction of liquid assets held by the investor. Crucially, the risk rebalancing instrument lets you lock in some support while removing some.
TradeStops alerts are an integral part of monitoring portfolio activity and can be configured in a variety of ways. If you want to be notified when VQ reaches a certain level, when it changes by a certain percentage, or when the SSI of a particular stock changes, for instance, you can do so. Traders can set up alerts revolving around trailing stops with the help of TradeStops’ price-based notifications.
For both day traders and long-term investors, “Ideas” is one of the best sources of up-to-date financial news and analysis. Based on volatility ratios and calculated entry and exit points, the platform divides the market into major indices and shows the percentage of stocks that are high risk (red), medium risk (yellow) or low risk (green).
This allows you to track the highs and lows of the indices over the past year and observe how the risk has changed over time. Traders can use the Stock Finder to see which stocks belong to which risk categories.
In addition to the major indexes, the ideas are broken down by market sector and commodity to better understand stock risk.
With their VQs and SSIs in mind, this section of Ideas categorizes companies into distinct investment paths. Zacks’s stock picks are also the result of in-house analytics and calculations.
While “Growth,” “Value,” and “Low-Risk Runners” are self-explanatory, “Best of the Billionaires” and “Kinetic VQ” are not. The stocks that fit various categories are highlighted in the portfolio display.
The Stock Finder is a stock screener that uses criteria from the Value Investing Quotient (VQ), the Security Selection Index (SSI), and Dr. Smith’s Lab. Since Stock Finder does not have advanced technical and fundamental filters, traders must dedicate themselves to identifying trade ideas based on VQ and risk.
Integrating TradeStops And Ideas
Ideas and TradeStops are sold separately but are best used in tandem. Users who have accounts on both the Ideas platform and TradeStops can easily export shares to a new portfolio. The shares are then automatically transferred to TradeStops.
Traders can create a new portfolio in Ideas by selecting the stocks they want to invest in from the Stock Finder results or Dr. Smith’s Lab and clicking the “Add to Portfolio” button.
In Ideas, traders and investors can search for potential new stocks to trade, and in TradeStops, they can monitor how those stocks are performing in a new or existing portfolio. The risk balancing and position sizing features in TradeStops help investors decide how many shares of a new stock they should buy without changing the overall risk of their portfolio.
Customization, Layout, And Compatible Brokerages
The two services, TradeStops and Ideas, do not have desktop or mobile apps. Despite the ease of use of the platforms, customization options are limited. Although most configurations are alerts, you can create default configurations for your favourite investment strategies and portfolios.
Portfolio data can be imported into TradeStops from the vast majority of popular brokers. Data can be entered manually or imported from a CSV file if a broker cannot interact directly with TradeStops. An unlimited number of portfolios can be imported and tracked in TradeStops.
Who is TradeStops For?
Medium-term investors or those who are responsible for multiple portfolios and want to get a handle on risk management and allocation will benefit greatly from this service. However, the average trader will find TradeStops too expensive for their budget. Only those with large investment assets will use it.
TradeStops is often combined with another TradeSmith product called Ideas. With the built-in Stock Finder, you can search for and evaluate stocks to build a profitable portfolio.
When you use TradeStops, the platform can keep an eye on your investments and manage your portfolio for you. Together, TradeStops and Ideas provide a full-featured investment portfolio management platform.
Tradesmith Pros and Cons
- There are many different trading platforms available on TradeSmith, each of which can be beneficial to both novice and experienced investors.
- You’ll be able to infer meaning from the available data.
- It’s guaranteed to make you happy and it can be yours for a variety of budgets.
- Very costly membership option.
- To unlock the premium functions, you must first purchase the upsells.
- Stock investment is risky.
Is TradeSmith A Scam or Legit?
TradeSmith is not a scam. It is a legitimate program that you can possibly make money with it, though it’s not nearly as easy as Richard Smith makes it seem.
Financial products carry a high degree of risk, and you must be aware of this.
You could make it to the big leagues and retire to a vineyard, but the road there is so fraught with danger that you might only live another decade, and that’s assuming you make it there at all.
One of my close friends is a copywriter for a multinational corporation that is a major sponsor of financial television programs around the world… As a result, you can take my word for it when I say that the “awesome” numbers they cite in their ads and landing pages are questionable at best.
They gloss over the dozens of lost bets and trades that preceded the big win you read about.
Now, most people can’t endure three months of consecutive losses before (hopefully) experiencing a major victory.
TradeSmith Review: Final Verdict
For sure TradeStops is a specialized investment platform. It is not a comprehensive and standalone offering that investors can profit from on their own. It excels at a specific subset of the overall investment process.
It can serve you as a virtual advisor when you need help in financial matters. However, the platform does not support you in doing so, nor does it offer sophisticated research tools.
Therefore, it is understandable that some investors, especially the more experienced ones, have difficulty justifying the high cost of the product.
There are undoubtedly better platforms on the market. So if you want to pay that much, you can also look at an alternative to TradeStops.
Just look at the research and portfolio management features offered by major brokers like TD Ameritrade’s Thinkorswim as a starting point. Most major brokers offer their own free trading platforms.
Best Alternative to Tradesmith
Although investing is one of the most popular ways to grow your wealth and give you some passive income, the stock is unpredictable.
Even if you have tips or insights from the so-called experts, it doesn’t guarantee you will win in the stock market. Only God knows when the stock price will rise or plunge. You may be able to make some money in a few attempts, but lose it all in the other attempts.
So if you really want to make a stable and secure stream of passive income, I would suggest you start an affiliate marketing business online instead.
Affiliate Marketing is perfect for anyone who is new to online business.
In fact, of all the online business models I’ve tried, affiliate marketing is the easiest and most rewarding so far.
In affiliate marketing, you can actually run your business almost with zero cost and achieve a steady and sustainable passive income to pay for your bills. You don’t need any initial capital and can even do it as a side hustle.
And if you really want to learn affiliate marketing and build a business from scratch, I’d recommend you to get started with the most reputable platform for affiliate marketing: Wealthy Affiliate.
Wealthy Affiliate is an all-in-one platform for building your affiliate marketing business from scratch. It offers you a free account (including a free website) with comprehensive training on SEO (free traffic methods), which enables you to get started with affiliate marketing right away without paying a penny.
But How Much Can You Earn with Wealthy Affiliate?
A 21-year old student from Wealthy Affiliate was able to earn $7,395 in just 1 week, which means he made more than $1k a day…all while using free traffic methods.
Wealthy Affiliate has existed for 15 years and there are many success stories in the past decade.
To give you more examples, here are some of the other inspiring success stories of Wealthy Affiliate members.
Where to Join Wealthy Affiliate?
Wealthy Affiliate has a very simple pricing scheme. It has free and premium membership.
If you want to feel about Wealthy Affiliate, you can sign up for the free starter membership here (no credit card required). You can select to be a free member with no time limit.
And as a starter member, you can get instant access to the community, live chat, over 500 training modules, 2 classrooms, networking, commenting, 1 free website, access to the keyword tool.
You can enjoy all these values without paying a penny.
So I strongly recommend you to register a free account and see it yourself.