Preface:
BlackHedge’s buy and sell signals predict, in real time, the best time to buy or sell any given stock at any given time scale, based on various technical indicators that are commonly used among professional traders and quantitative hedge funds to analyze price trends.
These signals are not storm-proof, meaning they cannot predict price action caused by certain market irregularities. For example: a big sell-off by a large individual shareholder might cause the price of a stock to sharply dip in a short period of time. These types of events are unpredictable by any model in the world, including ours.
Best ways to use BlackHedge:
- For long positions: Look for buy signals (Up arrows) for the stocks you are interested in, use them to make your purchase on your brokerage, then set a desired profit level you aim to return from that trade and create a sell limit order at that point. Keep it realistic, don’t be greedy; 5-10% is a great return for a single trade. Do that over and over, consistently, and you will see your portfolio compound beautifully in no time. (Keep in mind the higher you set your sell point the less likely you will actually reach it. Also, the longer you hold the stock the higher the return you could theoretically expect, i.e. 1-7% return for a position held less than 30 days, 8%+ for a position held over 30 days)
- Use our sell signals (Down arrows) to help you see whether you should wait for the price to go down a little more before buying. Our sell signal will predict a continued downward trend in the price. Buy as low as possible and sell high, remember?
- Often times our sell signals won’t predict the peak price after a buy signal due to sell-offs and other market occurrences, which is why you should set a desired and realistic profit level for each buy signal and not solely wait on the sell signal to actually sell.
- All the above also applies to Options trading and short selling as well, and can apply the same price action mechanisms to those instruments. (We don’t recommend beginner investors to get into Options & short selling right away, make sure you learn more about them before diving in. Check out Options Definition - NerdWallet & A Guide to Understanding How Shorting Stock Works)
We hope this helps you better leverage BlackHedge and ultimately become a successful investor in the stock market!
If you have any questions please don’t hesitate to shoot us an email at [email protected].
Thanks, BlackHedge Team