Tutorials with InFabric

TUTORIAL: Plan Your Trade with InFabric Eve

By March 23, 2021April 18th, 2021No Comments

So you have your stock options. Now what?

Choosing the right option is only half the struggle. (Find out how to pick your best stock option here.) The rest of the journey comes with knowing when to buy, and when to get out. 

For a successful investing journey, your goal is to buy at a time and price that will maximize profits, and to exit at the moment that stock option offers you maximum earnings and minimal loss.

Sure, get out when your investment makes you the most money. Sounds simple, yet people lose money on the stock market every day. If you don’t want to be one of them you have to know when to get out. Eve, InFabric’s AI Assistant, guides you along this journey to a successful portfolio!

Let’s see how she does it with an example:

BEGIN

Choose your best stock options (and/or stock) with InFabric Flow’s guidance. In this case, we planned out a strategy to purchase 2 QQQ Stock, 3 QQQ 350 Call (6/18/2021), and 1 QQQ 336 Call (6/18/2021). This same information in your Analysis Properties is displayed under InFabric Eve’s Step 1: Entry.

In our example, we chose to create a Growth Strategy with AI projections. We didn’t assume QQQ would be bear or bull; instead we let the AI decide which is most likely and highlighted (clicked on) the stock options we were interested in buying. 

If you want more direction to choosing the best stock options with Flow, click here to a previous tutorial.  

STEP 1

Buy the stock options (and/or stock) in your strategy. Use the information in Step 1: Entry to purchase in your broker. Enter the price and be sure to choose ‘Limit’ so that you will pay the price you’ve strategized for.

Going into this investment you see exactly what to expect through these steps!

Taking a glance at the bottom row, your Projected Profit shows how much your strategy is projecting to earn if you don’t optimize your portfolio as the days go on. (We’ll dive into this more in Step 3.) Max Loss Potential matches the dollar amount you’ve paid in these QQQ stocks and options. Even more, InFabric Eve has projected this strategy’s Success Rank as high, meaning we’re in great standing to earn!

PAUSE

You’ve officially invested into your strategy! Your portfolio is working for you now, but the game’s not over. 

Normally you’d have a notepad or possibly an excel sheet to track your purchase price compared to the next day’s price, and the next, and so on. Maybe you’d check your broker to see Unrealized P&L  and get out when you like the number.

That’s not a horrible way to approach your exit strategy, but it’s not the best. If you truly want your money to work for you, you have to know how to maximize gains and minimize loss. 

This brings us to our next step…

STEP 2

Now you’ll track your portfolio every day. The stock market changes daily and will forever be insanely unpredictable without the right tools. InFabric Eve is your weapon for success.

If the market jumps during your strategy, InFabric’s AI Assistant, Eve, will update her guided response to make sure you exit with minimal loss and the highest profit. Market changes in real time, so we made sure Eve did too. Eve provides the best guidance for most current time, any time. 

What you’re looking for when tracking your strategy with InFabric Eve: (1) Hold Until Date or the ‘get out’ date. The date you’ll exit and take in those profits. (2) Profit % or how much you’ll earn. The profit you’ll take in when exit day arrives and you close your contracts.

You’ll keep checking on Step 2: Progress to see if Eve suggests a different exit date (Hold Until Date), and it’s corresponding Profit %. You’ll want to exit on or before the date Eve suggests, or you might choose to exit when you’ve earned your goal amount.

Remember, the longer you hold a position in the market, the more risk you take since there is always a chance for a market jump which will cause either dramatic loss or gain to your contracts. Having a goal profit is a great option for traders looking to manage risk, while having a goal hold date is great for those willing to find the highest profit possible.

STEP 3

Almost the final step now! You’ve invested, and now you want to exit so you can take in those earnings. The key to getting this step right lies in InFabric Eve’s Step 3: Exit section.

Here you can see which contracts (and securities in this case, since we bought QQQ Stock) will earn you the most money. You’ll use this information to optimize your strategy. Optimizing your strategy is your armor against the market! It’s key to having the best, most profitable, portfolio possible!

For example, you might want to sell investments earning you the least amount so you can reduce your risk. Even more importantly, you would sell the least earning potential investments in order to invest more into the securities earning you the most. 

Take the time to rebalance your portfolio and manage your trades to achieve your goal: maximum profit and minimal loss. If you make any changes to your portfolio be sure to check in frequently to updates in Hold Until Date in Eve’s Step 2 section!

EARN & CELEBRATE!

You’ve continued to optimize your strategy, you’re Hold Until Date says today is the best day to exit, and you like the numbers in Step 3’s Total column.

Today is the day! Let’s sell! You’ll now execute the trade in your broker. Find your position in your broker account and close your position to realize those sweet, sweet profits! 

Note: You’ll update your strategy after exiting part of your portfolio. If your contracts have different Hold Until Dates, you’ll want to update this strategy to represent that. The image above shows how we would update this strategy on May 26 by clicking on the red X to remove the contract sold.

When investing in stock options the trick is to not only choose the right option, but to also know how to manage your trade to minimize loss and max prifits.  When to get in, when not to get in, when to get out. Eve takes the guessing work out of it. 

Arm yourself for success with InFabric Eve. Continue to build your most optimal portfolio yet!   

Elevate Your Strategy with InFabric Eve!