Ultimate PowerRatings helps short term traders of stocks, exchange-traded funds (ETFs) and leveraged ETFs spot high probability opportunities in the markets every day. With all three PowerRatings in one place, finding the best edges in those stocks and ETFs that are most likely to move higher in the short term has never been easier.
Traders who use Ultimate PowerRatings have many advantages over other short term traders. Here’s why.
Quantified Trading Strategies
Ultimate PowerRatings are based on years of quantified backtesting – more than a decade in the case of stocks – involving thousands of simulated trades in stocks and exchange-traded funds, both regular and leveraged.
This means that the historical tendencies revealed by Ultimate PowerRatings are based on patterns of behavior in thousands of stocks and ETFs over time. While past performance does not guarantee future results, knowing how certain stocks and certain ETFs have behaved in the past under certain conditions is a key ingredient to knowing how to trade them successfully and confidently right now.
Quantified trading strategies are used by some of the most successful and profitable money managers and hedge funds in the world from James Simon to D.E. Shaw. And as Larry Connors, CEO and Founder of TradingMarkets and Connors Research – the developer of Ultimate PowerRatings – recently said of quantitative trading: “It’s one thing to look at a chart and start seeing a pattern over and over again. It’s another thing to be able to take that pattern and put real numbers to it.”
For a growing number of high probability oriented, short term traders, those numbers are Ultimate PowerRatings. Click here to launch your free trial to our Ultimate PowerRatings today.
Systematic Trading Methods
Ultimate PowerRatings makes it very easy for short term traders to use systematic trading methods, rather than discretionary ones. By simply buying stocks and ETFs with Ultimate PowerRatings of 9 or 10 and avoiding – or selling short – stocks and ETFs with Ultimate PowerRatings of 2 or 1, short term traders can take a great deal of the guesswork out of trading.
Traders who use systematic trading methods are much less prone to the effects of persuasion from the financial media or other sources. In a world where, as Larry Connors put it recently: “one person is on the television saying, ‘Up!’ and is followed immediately by another person on the television saying, ‘Down!'”, trading resources like Ultimate PowerRatings are a consistent guide for traders who want to know when stocks and ETFs are truly oversold based on historic trends and worth buying and when they are not.
Buy the Selling and Sell the Buying
“Buy the selling and sell the buying” – another saying from Larry – is a simple but powerful rule that is at the foundation of Ultimate PowerRatings. For more than a decade, the research by Larry Connors and his team at Connors Research has shown that a short term trading strategy based on buying market weakness and selling into market strength can be a high probability, winning strategy for the average retail trader.
Make no mistake: one of the reasons why so few retail traders embrace buy the selling and sell the buying strategies – despite the evidence of their success – is because they are psychologically very difficult for many traders at first.
After all, what is easier than buying a stock at its 52-week high when everyone on CNBC and Fox Business and Bloomberg TV are touting the stock’s greatness? The only problem with this approach is this: most of the time, the trader buying the overbought stock or ETF at a new 52-week high is buying that stock or ETF from a trader who was savvy and confident enough to have bought in days earlier when prices were lower.
In other words, high probability PowerRatings traders tend to be taking profits just as the average momentum trader is getting into the market in the first place. Ultimate PowerRatings will help you be that trader who is buying markets before they move higher.
Earnings pessimism may drive an otherwise good stock lower into an area from which it has historically rallied. A new election in a foreign country or a natural disaster may help cause a pullback in a country-based exchange-traded fund, for example, that could represent a real opportunity for a patient – Ultimate PowerRatings-enabled – short term trader.
From widely-traded exchange-traded funds like the ^SPY^ to stocks like ^GOOG^ and ^RIMM^ and now including leveraged ETFs such as the ^FAS^, Ultimate PowerRatings is a tool every short term trader should have as a part of his or her trading toolkit.
Are you ready to make 2010 your best trading year yet? If you’re ready to learn new strategies that will help you become the best short term trader you can be, then click here to learn more about our Ultimate PowerRatings.
David Penn is Editor in Chief at TradingMarkets.com.