Frequently Asked Questions

If you are long, you enter the positions on bottom signals. If the stock goes your way, you’ll need to decide when to exit. This is same goes for tops except you short. The due diligence is entirely up to you so be sure to do your homework and enter positions at your own risk. Signals provided by Bottom Finders between the Bottoms and Tops are NOT in anyway connected other than they are all stocks from a reputable exchange. Meaning, signals that show up for bottoms will not have a correlating top signal to signify an exit. They are completely segregated and do not correspond to each other.

Signals identify bottoms with a high degree of probability. It’s not perfect, but if surprising it accurate at the macro level. Along with identifying bottoms, the algorithm also identifies squeezes as well. This is an unintended consequence, and we are elated to experience it. However, the squeezes should not be the strategy here. IF it happens call it a gift from the gods. Our signals have also shown to be more accurate on bottom signals (long) than on top signals (short). The reason is that when a stock is at new high’s, traders pile on and it tends to over-extend. Bottom Finders views top signals as an exit market in a stock if you are long in it.  If you want to use it to short the stock, it is up to you, however, we use it to exist the trade if it happens to correlate to a position we are long in.

We are certain that everyone here knows how to trade the markets and is successful at it (wink wink). However, if you are humble and hungry for knowledge, here are some guidelines most, if not all, professional traders live by.

1. The trend is your friend. Buy/Sell with the trend, not against it.
2. When buying or selling, zoom out so you are not selling in the pocket or buying up top.
3. Check out important stats like which institutions own the stock (Vanguard, Blackrock, etc.).
4. Look for tight spreads and ensure the stock is liquid so you can bail out at any time.
5. Learn to think like a market maker. Study charts and see where other traders are trapped.
6. Watch the pump and dump because they are very real. The SEC is a joke. 
7. Learn to gradually build up and fade out a position, and always use stops.
8. If you are on a losing streak, stop and take a break. You are only harming yourself.
9. Stop watching Youtube videos on how to trade because you are learning all the wrong things.
10. News, punditry, and analysis is entertainment and 90% of the time it is not meant to help you.
11. Lastly, if you are itching to buy and nothing jumps out at you, that’s your signal to stop.

Until all these things and many more disciplines come to you intuitively, you still have a ways to go. Be sure to follow us on Twitter and sign up for “The Bottom Finder” newsletter to receive updates on this exciting and new venture.