Author: Chris Hood
Your doctor tells you that you have a serious disease.
A potentially life-threatening condition that requires intense drug therapy and risky surgery.
But you feel just fine.
My guess is you’d want a second opinion. I know I would, especially given the gravity of the situation. After all, physicians don’t always get it right.
If I were in that situation, I’d like another specialist to examine me independently and see if he came to the same conclusion.
In other words, I would want confirmation.
The chances of a correct diagnosis increase when two different yet equally qualified experts agree.
And honestly, the more healthcare providers agreed, the more confident I would be that something wasn’t right.
It’s the power of confluence.
So what does this have to do with trading?
Your health is far more important than money. I just needed you to take this thought exercise seriously.
However, losing money (especially all of it) is the worst possible outcome in the markets.
So when it comes to entering a trade, I don’t rely on single indicators.
I built this idea into the tools we use in the Trade Command network. The Power Trend and Alpha Waves tools combine many different indicators into single, user-friendly tools.
Each one provides a buy or sell opinion akin to a team of doctors.
When the signals align, it tells me what to do.
Used properly, I know the win rates are high because they’ve been back-tested. And I use them to make money consistently.
These tools look at entirely different types of market data for their conclusions.
Each one on its own will be profitable over time. So when these two indicators don’t agree, I have to make the call based on what I feel is most important.
That’s where experience comes in.
But sometimes, I get them both in alignment – and I’m confident that the ticker symbol will move in a specific direction.
Double signals give me an extremely high likelihood of winning.
Take a look at the recent IBB example on the chart below.
The Power Trend tool told you to go long first. A not-so-subtle hint there – it says ‘Strategy Entry.’
You could have bought stock, a long call, or a bull call debit spread. Or perhaps sold a put spread if volatility provided some reasonable premium.
If you were still hesitant, the Alpha Waves tool provided a clear upward arrow.
The tools are screaming at you to go long.
And finally, secondary buy signals were forming on the Alpha Waves tool – the white crosses.
A third sign to go long?
I would already have been in the trade by then. But even if you had doubts, this should have silenced them.
And if you followed the signals, a bullish directional trade would have put profits in your account.
I have confidence in my system because it proves itself to me daily.
However, if you use different indicators, the logic is the same.
A winning system is worthless if you don’t follow your rules for entries and exits. You must build confidence by trading when it tells you.
PS – If you’re struggling in this bear market, let the Trade Command Network put you on the path to profits. We closed a trade just last week for an 818% gain on SPX. Get in on the action by clicking the link here.