Frequently Asked Questions about the Investor's Coach
Here are some Questions and Answers about the Investor’s Coach which will provide you with information about the website, the technical aspects and how the Investor’s Coach can help you. You can also find definitions for key terms used on the website by » clicking here
What do I need for trading?
To trade with stocks with the help of the Investor's Coach, you need:
- access to the internet (ideally daily or every 2nd day)*
- an email (could be a free email system like hotmail.com or yahoo.com)
- an account with a broker who will buy/sell the shares based on your orders for you, and who will hold your shares in the account.
* Except weekends or public holidays when stock exchanges are closed.
When you are on vacation or otherwise have restricted time or internet access, just set the recommended stop loss with your broker to be on the safe side.
How do I chose a broker?
To chose a broker, we recommend to search one who offers an easy-to-maintain online account, and most important, a broker which provides a good price to place orders. Broker fees can sum up to a lot, eating into your profit. The Investor's Coach is calculating a fee per trade of 10 EUR (or USD, depending on currency of the market) per trade. Within this margin you are perfectly fine ... at least try to find a broker who does not charge much more!
Maybe also your bank provides brokerage services. Only specialized brokers often provide a better price. Just check it out and compare.
The Investor's Coach is independent from a specific broker - we provide the information for you to decide which order to place, the broker then executes the order on the stock market.
For which stocks will I get trading tips from the Investor's Coach?
To see a list of the stocks which the Investor's Coach is analyzing on a daily basis, go to "Top Trades: Stocks". On this list you see how much profit you would have made with a specific share.
The Investor's Coach scans full markets for the best trading opportunities. Still, you will not see all stocks of the markets on this list - as we pick those which are characterized by a higher volatility.
A stock will show up twice in the list, depends if you want to trade it long, or short (long - going up, short - going down). For each strategy you see here the previous results.
What the general public does not see is the "hot" information of when it is time to buy and when to sell this stock. This is what we provide to our subscribers only - with a paid service, you will receive this valuable information via email or in your personal, login-protected area at www.investcoach.com.
How much money do I need to start investing?
To set up a stock portfolio, the recommended minimum investment is 5000 € or $. By mirroring one of the Investor's Coach reference portfolios, you will have a balanced distribution of stocks in your account for higher returns.
You could start becoming an investor also by purchasing a single stock, for which we recommend a start investment of about 1000 € or $.
The only reason why smaller investments are not so recommendable are the broker fees. Typically brokers charge a minimum fee per trade. When this fee gets divided by more shares, the fee-per-share is lower. As your wins will result from making multiple trades, the fee-per-share might have a significant impact on your total profit. Therefore, it is recommended to keep it low.
The Investor's Coach recommendation are meant for an amount not higher than 100000 € or $ per portfolio.
How much time do I need to trade with stocks (with the help of the Investor's Coach)?
Ideally, you spend 10 minutes a day to check emails to see if the Investor's Coach has sent you a message to buy a stock or sell a stock. Depending on the market movements, and the size of your investment, you may receive daily messages - or only once a week or even more seldom.
Your portfolio will be in a good shape when you react within a day, no specific hurry is needed. 10 Minutes a day to check emails and to place an (online or telephonic) order with your broker should be the maximum time you need. Probably much less.
How long do I keep a share?
The time to hold a share in your account depends on the trend analysis, and can vary a lot. 2-3 weeks might be a good guess for an average time, but this could be also a few days or some months.
Having bought a share based on a recommendation from the Investor's Coach, you will keep this share until a Sell-recommendation was sent to you via email from the Investor's Coach.
How many stocks does a reference portfolio contains?
Typically, our reference portfolios consist of only 4-5 different types of stocks, as the Investor's Coach selects the most promising stocks in an optimized relation.
Mirroring the changes of an Investor's Coach reference portfolio, our subscribers receive the trading recommendations only for a few stocks - so it will be an easy job to maintain your own portfolio and to achieve the same performance as the Investor's Coach.
What is the "Investor's Coach" ?
The Investor’s Coach is an “Expert System” that uses complex mathematical calculations to create and test strategies used for trading. It is constantly monitoring the stock markets and continuously devising new strategies. It then decides on the best course of action and suggests which shares to buy and sell in the given markets.
How will I profit from using the Investor's Coach?
The Investor's Coach is very easy to use. Once registered you will be sent email notifications of which stocks to buy and sell. All you need to do is buy and sell them. In 2005 our members have made substantial profits in European markets. Don't forget this includes commission. The Investors coach is fast and easy to use, saving you time and making you money.
How does the Investor's Coach know how much money I want to invest?
For Money and Portfolio Management the amount of money is required. We therefore use the Reference Portfolios with a start amount of 100k. You can easily adjust to your needs by dividing or multiplying the recommendations with your own requirements.
With the Individual Stock Recommendations you can choose the amount of money you wish to invest, the IC sends notifications of the best purchase and selling points.
Is the IC-Expert a complicated tool?
The IC-Expert is extremely easy to use: you can subscribe to your preferred Portfolios and Stocks and you will automatically receive buy or sell signals. On the other hand, understanding the technical background is difficult even for experts, because the IC comprises a number of methods that were combined and optimized. Each calculation is based on complex methods, mirroring the complexity of the stock market. Thanks to Investor’s Coach, you can participate in the stock market and profit without deep knowledge of financial mathematics.
» Read more about the Technical Background here
Is the Investor's Coach faultless?
The IC-Expert is based on financial mathematics and probability calculus. Due to the idiosyncrasies of every market, it is quite normal that despite intensive calculations not every single trade is successful. What is essential is that the overall system is profitable. In addition the system-immanent Money Management assures that small drawbacks can easily be outlived.
How is a stop level calculated?
A stop level is calculated based on the standard deviation and the max amount that is defined by the trading system. Every time you buy stocks, you should give your broker a stop loss order for each stock. At the indicated level, in case a share price reaches this point, it will be sold automatically, thus stopping a greater loss.
But to avoid having your stock sold too early – and to miss an upswing – the optimal calculation of the adequate stop level is crucial. The Investor’s Coach provides this on a daily basis for more than 100 shares for our customers.
What do I get when I sign up?
Our subscribers have the option to select Reference Portfolios and Individual Stock Recommendations for which they wish to trade in.
Once you have registered you will be able to select which Portfolios and Individual Stocks you wish to trade with. You can choose as many as you wish! After making your choices you will receive email notifications of which stocks to buy, when to buy, when to sell and even how many!
The emails contain all necessary information: Stock ticker, name, buy or sell, long or short, quantity of stocks, new stop loss level – optimized for your selected portfolio. Such a level of detail on recommendations is excellent value for money! Remember that all stocks analyzed by the IC can be traded with CFD’s as well as ordinary shares.
In addition you will receive a detailed monthly newsletter, packed with useful information. You will also be able to view detailed summaries of Portfolios at any time, containing up-to-date information about your investments also including history pages showing the last trades.
How to deal with short stock recommendations
What are short recommendations?
There are two main ways to trade a stock – long and short. When trading long you buy shares first and then sell it when the price goes up, this is the most common and easiest way of trading. However to trade short, you would sell a stock first and then buy when the price goes down. The IC provides both long and short strategies for all stocks.
How and where do I trade short?
Short trading is actually very straightforward, simply sell stocks when you receive a “SHORT SELL” email alert and close the position (buy the stock) when you receive a “BUY SHORT” notification.
Almost all brokers and online trading platforms provide a means to trade short – however they will all have their own set of rules and may have different charges for short trading. Often short trading is done using a margin and you will need to set up a margin trading account.
I don’t want to trade short – is this a problem?
Not at all, the IC provides both long and short stock picks. You will still make sizable profits by only trading long. If you are using our individual stock recommendations you can choose only long strategies for your stocks so you don’t have to worry about short trading.
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What is a Sharpe ratio?
The Sharpe ratio is a general measurement comparing a risk free investment (such as cash in the bank) with a stock portfolio.
Profit - risk free investment
Sharpe ratio = standard deviation
It recognizes when a portfolios profit is a result of accurate stock picking or if the returns are due to excessive risk. This useful ratio which determines risk-adjusted performance identifies portfolios that generate higher rates of return without too much additional risk.
If you have any further questions, please contact the » Investor's Coach Team
