Hello traders, I’m Barrie Einarson from Trade Ideas with today’s edition of, “What Makes This Trade Great”. Have you ever thought about how AI could assist in your trading decisions? Let’s dive into an example. Prior to proceeding, feel free to explore my Home Page, where you can acquire Trade Ideas scanners at a discounted price of Use Promo Code OVERTHETARGET for 30% off

Using AI to Make a Successful Trade

Looking at this recent trade, the power of AI becomes clear. An excellent application of AI in trading is identifying the most promising plays based on earnings reports.

Imagine this: Traders use complex algorithms to sift through intricate patterns, plotting the most likely outcome statistically. They seek guidance from these data points, and the output from these models is a substantial part of what makes their trades great.

In this case, let’s focus on the stock ON. The graph isn’t looking very promising and our AI model happened to agree, suggesting a short trade. At the point our AI model made this call, ON.

The Projection – Diving into the Details

Traders know that keeping an eye on specific price points is crucial. In this instance, let’s say there’s the prospect that “ON” could drop all the way down to the “low of that monthly candle”, which is 66. Essentially, that becomes our target price.

If you then look up the stock, you’ll see that it indeed plummeted all the way to 66.55 before experiencing a minor bounce – that prediction becoming a reality is nothing short of tremendous!

That’s the power of AI. The prediction was an earnings play, one where the AI algorithm successfully alerted traders about the potential downturn. This earnings play is particularly relevant to “semi” and tech stocks, which were largely underperforming that day.

The Market Landscape

The general market had a fairly good day. This juxtaposition emphasizes the importance of individual stock analysis. The crucial point is that not all tech stocks follow the broader market trends, thus the need for more specific, in-depth analysis.

Many traders in our community, alerted by our AI, took the suggestion, shorted the underperforming stock, and evidently, made a successful trade.

“In an ocean of market trends, AI can help us pinpoint the most impactful waves.”

We saw the strength of this application of AI in trading in a real-world scenario; the sheer accuracy of AI identified the critical price points and plotted a successful trading path.

Thanks for checking out this edition of, “What Makes This Trade Great”. Continue to follow our blog for more insights into how to enhance your trades using smart technology and keep an eye on the stock market.

We’re off to get back to monitoring those market trends. Have a great day and as always, happy trading! See you in our next post.