New Trading Signal 16.02.2024

New Signal

Buy Signal (Long) 16.02.24: 

Entry 5033, Stop Loss 4917

As of yesterday’s close, a new trading signal for the S&P 500 is active. Buy in at approx. 5033 points. The entry can also take place in the next few days, if the S&P 500 falls during this period, a better risk/reward ratio can be achieved. If the S&P 500 falls below the low of February 13.02.2024 at approximately 4917 points, the purchased position must be sold at a loss, in which case a further notification will follow from GuidedInvest.com.

The trade can be executed using any ETF that tracks the S&P 500, including leveraged ETFs or other leveraged products such as options or CFDs.

An example using a 3x leveraged S&P 500 ETF, Ticker SPXL
Entry on February 16, 2024: Price at start of trading at approx. $119.82
Stop loss below the low of February 13, 2024 at $111.90

If you want a firmly defined risk, for example 1% of the portfolio, the purchased position must be calculated. The risk is the maximum amount of money that can be lost if the position is sold at the stop loss level. Here is an example with 1% risk and a portfolio with $10,000

• First, the risk is calculated as 1% of the portfolio: $10,000 x 1/100 = $100

• The difference between entry and stop loss is calculated; for this we take the values ​​from the ETF example above $119.82 – $€111.90 = $7.92

• To get the number of shares that need to be purchased, the risk ($100) is divided by the difference just calculated ($7.92): $100 / $7.92 = 12.6 rounded down to 12 shares.

• The size of the position is 12 shares or 12 x $119.82 = $1437.84

This calculation can be done with any ETF or other trading product in any currency.