ThePantherTrader FAQ

Why have you opened

The aim is to put subscribers in the best position to profit from a long beta strategy in the stock market. Risk management practices are the most important ingredient in consistently profitable investing.

Remember….success in the market is all about the PROCESS!!! I provide investment tools to minimize risks, and to gain largely positive returns.

We are traders and investors. Our operations are transparent. Our aim is to trade profitably on a consistent basis. We have launched this service because we want to help as many active traders as we can to make money consistently in the stock market.

What makes service different from other trading subscription services?

Trading subscription services send buy/sell signals but not always they give clear indications on how to handle risk. They may say “…if the stock does not form a proper handle, you’d better sell.”, or “if you don’t see volume coming in it certainly means that the stock will go down”. The point is: can you prove the world that what you are saying is the best possible action? Is what you are saying really true? The reality is that when it comes to financial markets and trading, every person feels entitled to express their view, pretending they have some super-natural ability to forecast the future. Guess what, they cannot logically demonstrate their view! Trading and investing is a probability game and the best thing you can do is to put yourself in the position to profit from the most probable event. That is what is all about.

Why is our methodology better than other approaches? Our strategy gives traders the confidence to exit an unprofitable trade and to wait for an entry point in the future at the lowest possible risk. Our system is successful because positive trades largely make up for the small well defined losses. Every type of trader would definitely benefit from the service.

Entry buy signals give a timing advantage. We know how a stock should behave if our hypothesis was correct. If price action proves our hypothesis to be wrong, odds are that the best action to do is to exit the trade and wait for the next low-risk buy signal. It is that simple. Once you are in a positive trade, you can operate from a position of strength: you could decide to set a profit taking target, or you might take a long term view and decide to adopt a weekly/monthly time horizon. As a CFA candidate, Nicola commits to the highest ethical and professional standards. We are absolutely sure that any investor would find the service valuable.

What does the service include?

It includes a daily list of trade ideas with clear indication of the stop level. Daily Market Reviews are posted before the opening of the next day. For example, Daily Market Review 3/11/2015 refers to the 3rd of November 2015 market action, and trades recommendations are for the following trading day, being the 4th of November in this case.

We use limit orders because we are not willing to pay the spread by entering with a market order. Of course, sometimes trades may not be executed; however, depending upon the market condition and the stocks’ specific parameters, we might decide to insert a market order. Depending upon your trading personality, you might have different preferences.

Occasionally it may happen that there are no trades for the day: it simply means that the system did not identify trading setups which would give us or subscribers an edge.

I may upload posts with truly useful educational material, such as book reviews, economic data. Also occasionally I would publish reviews on the state of the market, describing my view of the current state of the indices. We will publish content if we believe that it would be valuable for subscribers ; we personally find broad market analysis very useful for position sizing strategies.

How would you describe your methodology?

Our methodology  combines fundamental and “logical technical analysis”. We believe that markets move because of the underlying fundamentals. However fundamental analysis alone does not minimize risks since it gives no indication on when movements are going to occur. Technical analysis does exactly that: citing the Bible of technical analysis

“Technical Analysis is the science of recording, usually in graphic form, the actual history of trading (price changes, volume of transactions, etc.) in a certain stock or in “the Averages” and then deducing from that pictured history the probable future trend.”(Technical analysis of Stocks Trends, Edwards & Magee)

We analyse price action and trading related indicators in a different way from traditional technical analysis teachings. We realized that superior trading required us to develop indicators which were not “fluff”, that truly would give us an edge. Also it had to be different from what other market participants used: because the average investor uses classical technical analysis tools and loses money by trading the markets, it is easy to understand that the we did not want to use average techniques.

We employ a discretionary fundamental approach in selecting stocks, while entry and exit points are systematic.

What is that makes our service unique?

A buy signal is triggered if certain well defined technical conditions occur. This technical setup gives an edge to investors in the sense that the price of the stock is more likely to increase than to decrease on the following business day.

In our experience as traders, the worst condition you could find yourself as a trader is being confused about whether or not exiting a trade or just waiting. Well, our system removes that uncertainty and gives you the best answer. The system knows how the trade should work out if our hypothesis was correct, so investors can decide with no doubt if they want to exit the trade or not.

If the trade does not work as planned, than the best action is to exit the trade at a very small loss and wait for another minimal-risk entry point.

Why do you combine fundamental and technical analysis?

We have found that stocks with specific characteristics tend to outperform the rest of the market. Usually the companies behind such stocks are the very best companies in their respective industries, in terms of their ability to help clients, retaining clients, increasing their gross margin regarding inflation, etc.

We seek to invest in the very best stocks in the market in terms of fundamentals.

However fundamental analysis alone does not provide any information on when it is the best time to put your money at risk in the market. It may very well be that you have to wait long time before an uptrend emerges. In my methodology trades are triggered when precise technical conditions occur: what it tells us is that we are in the absolute best conditions to enter the stock in the most convenient way.

Do you have an official track record?

We do not have an official track record yet, but we are currently making it. No two traders will trade a setup exactly the same and no one will trade all of the ideas mentioned. Several variables affect trading results among market participants: for example I am not willing to enter trades on market orders, so some recommended trades could not be filled, whereas you could have an opposite view. service puts subscribers in the best position to profit from the markets, at a well-defined risk level. Every trader is different, and their respective trading results will be different as well.