Whether you’re an everyday investor or a Wall Street pro, the hardest part about investing has always been deciding when to sell.
And with today’s political uncertainty and fast-paced tech developments — not to mention a global pandemic — making investment decisions is more difficult than ever.
That’s why TradeSmith CEO Keith Kaplan and his team created the Stock State Indicator (SSI).
It’s a simple tool that tells you exactly when to buy, hold or sell your shares:
The indicator helped Keith avoid huge losses in the March 2020 stock market crash when his system flashed red (“sell”) on February 27.
After Keith took the majority of his money off the table, the market proceeded to drop more than 20% in a matter of days.
Read on as Ian King asks Keith how to know — with mathematical certainty — when it’s time to sell a stock … and to get a special offer at the end of this article.
A Brief Interview With Keith Kaplan
Ian: Thanks for taking some time out of your busy schedule today to answer a few questions about your TradeStops product, Keith.
Keith: Happy to be here, Ian!
Ian: Our readers may or may not have heard about you and your company, TradeSmith, before.
I wanted to interview you because, frankly, you and your team are doing great work over at TradeSmith.
For over 15 years, the TradeSmith team has built financial technology tools for the Main Street investor. They’re the types of tools that I’ve been exposed to at hedge funds, but much easier to use.
So, Keith, I found your work on billionaires and building portfolios out of the stocks they buy to be fascinating. Can you tell me a little bit about that?
Keith: Thanks Ian, and absolutely!
It all starts with understanding the risk and health of any individual stock or fund. That’s key.
We built several algorithms to look at each of the thousands and thousands of securities in our system to tell you just that.
I’ll just say “stocks” from now on, but know that represents everything from stocks and mutual funds to exchange-traded funds and commodities — and even cryptocurrencies.
We assign a number, and the lower the number, the lower the risk. And we assign a color: green is healthy, yellow is caution and red is unhealthy.
And to get to your point about billionaires, do you know how we get the data on what stocks they’re buying and selling, Ian?
Ian: Ah, you’re putting me on the spot.
But luckily, this isn’t a trick question. Every quarter, billionaires have to file a report with the Securities and Exchange Commission (SEC). The report covers what’s called 13F data, which tells the SEC everything the billionaires bought and sold over the last quarter.
Keith: Yes, exactly! In our TradeStops system, we programmatically grab every quarterly 13F filing from the SEC and load the stocks that close to 30 billionaires are buying and selling into our product.
This means that anytime you want, you can log into our system to see what the billionaires are buying and selling each quarter.
It’s really cool.
From there, you can see which stocks are healthy and which are not. And you can also find the level of risk each stock has currently.
Ian: I agree, that’s really cool. And it’s unique.
I’ve certainly seen some systems out there that do similar work. But what you do on a stock-by-stock level with health and risk is unlike anything I’ve seen in the past for Main Street.
So, cover for us how people can act on these billionaires’ stock picks…
Keith: You got it.
Here’s where things get really fun.
People don’t typically know how much money to put into a stock, or multiple stocks, that they’re buying.
At the click of a button, our system can tell you not only how risky or healthy a stock is … but how much of that stock to buy. Especially when comparing it to your existing portfolio or other stocks that you’re buying at the same time.
And we have a whole set of super user-friendly tools that help you determine what to buy, when to buy it, how much to buy and when to sell it.
Ian: And you pull that all together in your Pure Quant Portfolio Builder tool (that I love, by the way).
Keith: Yes we do.
This Pure Quant Portfolio Builder tool pulls together everything we do in our system into one simple and graceful three-step process.
It’s built on literally 15 years of research, back testing, algorithms and data in our system.
First, you tell the tool what source of stocks you like. That can be anything from a broad index, like the S&P 500 Index … to all of your newsletters, Ian … to anything you want.
You then tell it how much money you have to invest, such as $10,000 or whatever you’d like. And finally, you tell it how many stocks you’d like to buy.
The tool then does all the work to build you a perfectly risk-balanced and diversified portfolio of stocks.
The results read like a recipe for investing, and it’s so simple to use.
Here’s a great example of just using those billionaires’ stocks in our system over nearly 20 years. You’ll see two things:
- You’ll see that the stocks the billionaires bought over this period of time greatly outperformed the S&P 500. That’s incredible by itself.
- You’ll see that we nearly doubled the billionaires’ performance by using their same stocks and leveraging the Pure Quant Portfolio Builder along the way.
Ian: Keith, you put together great tools that are not only easy to use, but that also do some really sophisticated stuff behind the scenes.
Having tools that help Main Street investors know what to buy, when to buy it, how much to buy and when to sell is an absolute game-changer for folks without access to hedge funds and Wall Street.
You’re doing incredible stuff here!
Thank you very much for joining me today.
Keith: You’re welcome! Always a pleasure.
Seeing Is Believing … so Try TradeStops for Yourself
To this date, over 50,000 investors have used TradeStops’ tools to grow and — most importantly — protect over $20 billion in wealth.
Jon L. said: “I literally avoided catastrophe by using this.”
Patti S. noted: “This has saved me a lot of money in this volatile market.”
Theresa H. commented: “I feel much safer with you on my team. Keep up the great work. You guys are mathematical geniuses.”
And these are just a few examples out of an entire community of people who have been using TradeStops to get ahead of the market’s biggest moves.
But seeing is believing … and you can’t fully understand how big of a game-changer these tools can be to your wealth-building efforts and your peace of mind without trying them for yourself.
That’s why TradeSmith has arranged a special offer for Smart Profits Daily readers
Simply click this link to find out how you can try TradeStops for yourself.
This truly is a one-of-a-kind product, so I hope you take advantage of this incredible offer while it lasts.
Assistant Managing Editor, Banyan Hill Publishing