What does this mean for the average investor? We shift to an era of active investing.
In the first half of 2016, the markets must discover new opportunities of innovation; either through enhancements in productivity or reduction in labor or resources rather than the guaranteed money the central bank afforded us. We are at an inflection point where genetics, nano-technology, artificial intelligence and big data are poised to change supply curves thought immovable, shift demographics to redefine sectors and create opportunity on a scale never imagined from connecting us all together but these technologies take time to scale.
This provides the uncertainty that markets thrive on.
Needless to say, the green channel provides the highest probability but caution is advised until the red channel is broken.
Check Plan Status
Make sure the plan has not begun yet. Once InProgress, you will need to decide if you want to catch up.
Review the Amount of Capital
Each plan has a total amount of capital that may be used to execute. You can adjust the amount you want to assign to this plan & press Update & Review
Set your Buy Order
Each channel will provide a buy price and # of shares. You will want to set the 1st order as GTC at your broker
Set your Reward Target
When the first order executes, you will need to create an exit order at the target price
Watch the Cancel Target
If we hit the Cancel Price before the Buy Price, you will cancel the order as the plan is invalid.
Set Buy Order
When you enter your 1st Buy Order, set the 2nd Buy Order immediately. You can do this at the same time as the 1st order
If 2nd Buy Triggers
Set the exit for all the shares from 1st and 2nd at the 2nd Reward. This means canceling the 1st Reward target but you should also set the 3rd Buy Price.
Changing your Mind
If you want to exit the plan with no loss at this point, this is your break even price that you will need to set for all open shares.
Risk for 2nd Execution
The total risk for 1st and 2nd execution if you use the 2nd risk target to exit all shares.
Reward for 2nd Execution
The total returns for 1st and 2nd executions if you exit all shares at 2nd reward target.
Repeat like Above
You will repeat the same steps as above but for these price levels.
Risk for Entire Plan
If the 3rd Risk target is hit, this will be your total loss for the plan.
Reward for Entire Plan
If you exit all shares at the 3rd Reward target, this will be your profit.
You can press the Play icon on the chart and it will fill in the chart as days pass.