After a careful analysis, there seems to be only one way for retail traders to become unreasonably RICH from trading.
When it comes to making money in the stock market should you listen to large banks, a financial advisor, your parents (who aren’t rich yet), your friend who can’t reproduce their crypto results, or a YouTuber who makes more money from views than his actual portfolio?
You’ll know the answer by the end of this article.
What do you need to know to become unreasonably wealthy from stocks?
Exactly when to buy or sell.
Exactly which stock to buy or sell.
If you know the answer to these two questions, you will be a trading god.
There are many ways to try and know when to buy/sell/exit stocks:
Experienced traders often use technical indicators, charts, and graphs. They study economics and analyze a company’s earnings. Traders build a system over the course of years by slowly and meticulously testing different parameters, variables, and criteria for buying/selling/exiting a stock.
Most traders lose money for a few years before finally identifying their golden rules: the set of criteria that maximizes their win rate and profitability. But 95% of traders never reach this point and fail.
But what if you don’t have years to dedicate to trading and mountains of cash to burn?
A financial advisor steps in and tells you to buy some index fund, mutual fund, or some whole life insurance policy that will “make you rich” at 60 years old when you’re too tired to travel the world (not to mention, they never account for inflation when showing you the “millions” you’ll have after retirement).
While you wait patiently for those promised riches, your financial advisor gets a profit on your money through management fees. The most ironic part is that nearly 80% of fund managers are underperforming the stock market.
New report finds almost 80% of active fund managers are falling behind the major indexes CNBC.com
The beauty of giving your money to a professional money manager is that it is passive and feels like the safest option.
But, for many people, it is far too slow. And you’d be better off simply buying an S&P 500 ETF (i.e. SPY) and holding on for a few decades.
“It costs more for active managers when they’re trying to compete with the S&P 500 that is essentially free through the ETF wrapper.” CNBC.com
So, do we just say “screw this buy, sell, exit stuff” and buy & hold the S&P 500? After all, it returned an average of 9.77% per year over the past 30 years with dividends reinvested (Trade That Swing).
Of course not!
We are here to outperform the market and accelerate our compounding power as much as possible.
We are the people who are willing to take on a bit more risk if it means the potential return is higher.
We are here to find an edge.
But if technical analysis doesn’t work 95% of the time, financial advisors are essentially a long con, but we still want to beat the market… what can we do?
Let’s look to Wall Street to find that answer because some funds do outperform the market.
According to USA News, 4 out of the 5 top hedge funds in 2022 (and arguably in history) were either quant-focused or offered quantitative trading services.
Quantitative trading utilizes mathematical functions and automated trading models to make trading decisions. (Investopedia.com)
One of these firms, Citadel, just made a record $16 BILLION in 2022 while the rest of the market crumbled into burning ash.
And, yes, they employ quantitative trading strategies — strategies that are not offered to retail traders a.k.a. regular people, like you and me.
So, if individual trading has a 95% failure rate, the pros can’t even beat the market, buy & hold works but it takes forever, and Wall Street is gatekeeping the best strategies… what do we do??
A new trading opportunity called Quantitative Trading as a Service is just starting to gain traction. We believe it’s the answer.
It is now clear that we must find a way to make quantitative trading strategies accessible to the average retail trader.
Companies like ScaleTrade are pioneering the Quantitative Trading as a Service (QTaaS) movement. They are developing proprietary trading algorithms that have outperformed the S&P 500 and sending signals from these algorithms directly to your phone.
Their latest V1.6 algorithm is beating the S&P 500 by more than 11%.
Here’s what Scaletrade offers that your traditional investment vehicles or strategies don’t:
ScaleTrade traders have already put over $1 million in trading volume behind ScaleTrade signals. Learn more about ScaleTrade’s algorithm statistics.
The ScaleTrade team also continues to develop more trading tools for free in the Project ScaleTrade Discord which is completely free.
But if you want access to their Algorithm and TradingView chart add-ons, they’re currently running a 20% OFF discount for your first month on their Monthly Plan if you use code ‘MEDIUM20’ at checkout.
We hope this helps, and happy trading!