Recurring Investment Plan

Recurring Investment is a very big topic and here we will discuss only items related to the alerts we create. There are 2 ways you can use the alerts for Recurring Investments:

  • Short Term Recurring Investment
  • Long Term Recurring Investment

Short Term Recurring Investment

This is frequent withdrawals strategy where you will withdraw your investments once you reach your profit target percentage based on your risk appetite. Our risk appetite is investing only on major stocks, cryptos, ETFs or other financial assets. The alerts can be set to trigger on 5 minutes candle and when you get it then set a limit buy order at the previous candle closing price. This type of strategy is better if you want to have a consistent stream of income. For example, buying Microsoft stocks when ever you get the alert. And based on your profit target percentage like 1% set a limit sell. Most of the times the alert is triggered at the bottom value. Also don’t put all the money, just play with a single stock and once you get acquainted with the system slowly increase the investment. Please note that if don’t have 25000 balance in your account at end of day you can trade maximum 5 times in 5 days. And for this strategy to work you need might be trading mush more than that so you need to have more than 25k for investment. Please read about pattern day trader for further details. And if you want to start with less capital then check the long term recurring investment section below. In the below screens the alerts are triggered on the highlighted bars. Always keep in mind that there is always risk in losing all of your money.

Short Term Recurring Investment
  • Alert 1: Buy 1 Stock and set Limit Sell with 1% profit percentage.
  • Alert 2: If the stock didn’t sell buy another one and based on updated average price set Limit Sell with 1% profit percentage. If the stock sells before the new alert voila you made it with your first profit of 1%! Buy again and set updated Limit Sell with 1% profit percentage.
  • Alert 3: Repeat the process.

In a single day you might get multiple alerts so based on your day job you need to plan but keep in mind that you need to buy ASAP, if not wait for the next alert.

Long Term Recurring Investment

This is mostly for just buying the stocks whenever you get the alerts. And you just keep on buying 🙂 For this type of alert please change the candle period to 1 day at least. Since you are mostly buying and not selling you might not need $25000. You can just start on with any amount based on the stock you are going to buy. You might get 5 to 15 alerts in a year for a single stock and you can set 5% as limit sell if you want to sell them or else keep on buying.

Long Term Recurring Investment

For both plans please refrain from buying during the earnings announcement week if its a company stock but for ETFs just keep on buying. If you are fan of long term investments then its a great way to buy your equities. There are industry specific ETFs (XLF, XLE, XLI, XLV, XLK, XLY, XLP, XLU, XLC, XLB) that you can set alerts on.

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