Millions of individuals would like to enter the stock markets as it represents the most profitable investment strategy available to the majority of individuals with capital to invest. The volatility, turmoil and obstacles that are inherent in todays markets can all be easily lumped together and defined as risk. This risk and uncertainty prevent the majority of these potential investors from entering the equity markets. They simply don't want to risk their life savings competing against the many advantages that the institutional investment powerhouses incorporate. Safe investment alternatives such as savings accounts are currently paying around 1%. Accurate Technical Analysis can provide new traders with an increased margin of safety providing them with the edge that allows them to enter this lucrative market with increased confidence.
If you don’t currently utilize Technical Analysis in your trading decisions, knowing full well that every major trading house, algorithmic flash trader and all institutional investors do, the obvious question then becomes, why? The most common answer we hear is; “it takes to long to learn,” and “it’s to complicated to interpret.” Stock-Dot-Genie automatically analyzes your stock, utilizing multiple Technical Indicators, and distills the results from these custom indicators into a simple, but sophisticated signals that make your trading decisions safer, obvious and profitable. The number one advantage of SDG is it's ability to filters out a lot of the market noise by focusing on the primary signals of recent price and volume, eliminating as many contradictory signals as is possible. The most successful traders, the top 1% of all traders, make their decisions using price and volume alone.
Our goal was to add a valuable tool-set, to all trader’s arsenal of tools, without requiring them to spend months or years mastering the universe of indicators available and then experimenting with their mired outputs to learn, often by trail and error, what actually works in the many different situations all traders are faced with. Experienced technicians can still miss important signals produced when multiple indicators are being utilized and subtle changes may be indicating important technical events. Because the computer, (the Genie) is detecting, flagging and clearly displaying each of these important events, our users miss virtually nothing.
The most important information you will ever extract from this endless flow of data is what is happening right now! What is the price right now - AND - is that price being confirmed by an increase in volume? Although stocks can produce repeatable patterns and indicators can identify and highlight them into what appears as a prediction, nothing can predict what tomorrow will bring. It’s important to emphasize again at this point that we are not trying to predict what will happen tomorrow. We want real time, relevant information that allows us to make profitable decisions reacting to what the markets and our stock are doing - right now! The current price is the real time distillation of all that is known about this equity, by all of the traders in the market.
“You can’t predict what stocks or markets will do, You can only determine how you will react”
~ Stock Dot Genie ~
The TAO of Trading, “Discovering a Simpler Path to Success,” by Robert Koppel, defines: “Successful trading as more than merely calling on specific analytic or strategic skills. It requires the development, cultivation and conditioning of habits, thought patterns, and creative attitudes that influence the way to think and behave in the market.”[1] SDG strives to provide you with at least an introduction to this very important educational component, found here on our various pages and guides that are very much required to fulfill this definition of trading success. The application, StockDotGenie should allow you to be successful from your very first attempts at trading. The StockDotGenie application is a TradingView App and can be found here.
SDG takes a different approach to technical analysis. Todays markets are much more volatile. There are many reasons for this, but the primary ones are: 1) the instantaneous availability of information over the internet, 2) traders instantaneous ability to execute trades, again because of the internet, 3) institutional algo and flash traders automatically executing thousands of micro trades per second based on algorithms, 4) Market manipulation by institutions (No I am not paranoid, it’s real). This trading landscape makes the most recent days price and volume action, the most critical to making accurate, near and short term trading decisions. Trading decisions have a much higher probability of being correct and thus profitable when made at confirmed support and resistance levels. Volatility is not entirely bad as volatile markets produce excellent environments in which to day or swing trade.
SDG can be utilized to trade any stock, commodity or openly traded financial instrument at any time scale. I personally utilize two investment strategies. I have a long-term “investment” portfolio of high quality stocks that I hold long term, but when I decide to enter or exit one of them, SDG is utilized to optimize my timing. I also have a portfolio that consists of Targets Of Opportunity (TOO), that I swing trade. SDG excels at swing trading as it was designed and developed for exactly this type of trading. A complete explanation of SwingTrading and it's advantages in todays volitle markets, can be found on this SDG page.
All of us would like a magic key that would unlock instant wealth. Many stock trading systems bill themselves as possessing just such a key. Unfortunately no magic keys exist in life and certainly not in any of today's financial markets. To put this another way: there are no foolproof systems for picking or managing stock trades. The most any trader can hope for is a system that reduces risk, while at the same time, increasing the probability of profitable trades. Stock Dot Genie (SDG) will greatly assist you in achieving both of these goals.
My professional career was in clinical research and through “BioLogic,” I consulted to many emerging biotechnology companies, in several arenas, including development, manufacturing and business partnering opportunities with large pharmaceuticals. I majored in computer science and wrote the SDG application code utilizing Tradingview’s proprietary language; Pinescript. I have been a contributing financial writer to Seeking Alpha for the last five years focusing on technology and biotechnology stocks. I have been trading stocks for the last 25 years.
Over the last five years I have dramatically improved my profit to loss performance. The most valuable and educational lessons where obtained through the pain of experiencing large and often unexpected losses. Life changing losses are completely behind me. Not to be confused with never having a losing trade, because that’s impossible. No risk, no gain. I still incur small losses, but they are just a part of trading and do not dramatically impact my overall performance. The SDG page on risk and money management goes into this in some depth.
I wanted to teach my trading system to my family and friends. How to safely and successfully trade stocks in today’s volatile markets. SDG was developed, so that instead of trying to impart 25 years of research and trading experience to my family members and friends, I could just provide them with access to StockDotGenie.Com as an educational site as well as providing the SDG Tradingview Application. The SDG application allows them, and you, to make the same decisions I would have, by incorporating all of the elements of the same decision tree that I now utilize to successfully trade in todays volatile markets. The algorithmic solutions that produce and power each of the Genie's dots, allows you to have an expert technical trading guide, a genie if you will, assisting you at every turn of todays challenging markets.
Technicians have been producing new and innovative Indicators, utilizing technical analysis for hundreds of years. Candlesticks are a price visualization form of technical analysis and were invented in Japan over 300 years ago by rice traders. Thousands of variations of indicator signals are now available to be displayed on most charting platforms. There are many links available on this site to further your education and research, including “Technical Analysis,” as well as a list of the most commonly utilized indicators and a complete list of “Trading Resource Links,” also on this site. Many require a great deal of study and the output from them can produce very complicated even convoluted signals as the image above demonstrates. It is also not uncommon for one indicator to directly contradict another. But all of this sophistication obscures one primary point. The only data available allowing these indicators to produce signals are the limited data that the markets provide, the price action broken down into it’s five basic components. Four of these components are the price of the equity at a given point in time during the trading day. Two of them are the price at a specific time, the open and close. The other two provide the magnitude of the days trading range or it’s High and Low of the day. The final information provided, and it can often be the most important, is the number of shares traded for each day or the stock's Volume.
Starting in the 14th century, a genius denoted a guardian spirit, and someone with extraordinary talent was said to have a genius, because his or her gift was thought to be the result of some supernatural help. Genie, derived from the ancient Arabic word; "Jinn," is the origin of our current concept of a very intelligent and talented individual.
Most of us have viewed a stock chart in complete wonderment as to what the stock we are examining will do next. Having an intelligent and talented guide, a genie for traders is the goal of Stock Dot Genie.
What we don’t claim is that SDG can predict the future. No trading system can, not even one with the word "Genie" in it. No amount of analyzed data can predict, completely-unexpected-events affecting the broader markets or your specific stock. We can’t know, what we don’t know. If the stock you are tracking is doing something completely unexpected, then someone knows something you don’t and you should go looking for that “something.” I almost always start that search here.
The content of all SDG pages will be updated anytime additional relevant information comes to light that will assist our traders. Anytime you find information that you consider instructive, relevant or interesting please post it to the SDG-TOO-BLOG so that everyone can gain by your discovery. TOO = Targets of Opportunity.
The platform that SDG resides on is Tradingview. TradingView is an advanced financial visualization platform that is amazingly fast and easy to utilize. It is the first entirely native HTML5 charting platform available on any platform and can be utilized on all mobile devices. We have one entire page on this site dedicated to their charting platform. (SDG TradingView.Com) You should be aware that this TradingView widget or embedded web app found on our site has a much smaller set of options and tools than what you will enjoy on their main site.
Tradingview is an amazingly versatile platform that allows you to rearrange, delete or add any of the other custom indicators that either come standard on the site or are produced by a very talented programming community. Many excellent indicators produced by these programmers are provided free of any cost. Many of these exactly replicate professional platforms that cost their users many thousands of dollars. Some require a nominal monthly fee like SDG. You get to pick and chose and then produce you own ultimate trading platform with little or no additional expense to your own bottom line trading cost.
The footer of every SDG page provides three navigational links. The red dot takes you to the previous page, the green dot take you to the next page and the Genie Lamp will take you to the SDG application on the Tradingview site. Contact information can be obtained by clicking on any of the icon Dots below the footer.
[1] The TAO of Trading: Discovering a Simpler Path to Success by Robert Koppel 1998 Dearborn Financial Publishing, Inc. Amazon link here
