It falls somewhere between:
Full-time employment – Poking around in an office all day searching for stimulation.
Wandering – Out in the world, exploring, fulfilling long-standing dreams, and doing so while remaining plugged in to the financial realities that exist in your life. Wanderer seeks to help you balance work and play a little better than normal life usually allows for.
Full retirement – Poking around the house all day searching for stimulation.
A unique resource where we teach you how to trade for income. We teach the techniques, and allow you to look over our shoulder as we apply them in real-time. As you get more comfortable you can trade along with us, and apply the techniques you’ve learned. Our Newsletter will provide you with everything you need to make an informed trade with a strong risk/reward.
We’ve thought long and hard about this. The reality is, it took us over four decades of combined experience to learn what we are attempting to teach. We are looking for folks who are willing to give us more than a one-month try. We believe one year is a fair assessment of what we’re offering. Did you learn in that time? Did you make money with our trade recommendations? We are confident you will. Therefore, we have decided to forego a trial period and instead offer a free sample of our newsletter. Get yours now.
No. We will explain appropriate trade sizes for a model trading portfolio, but specific allocations of your overall portfolio remain up to you.
Yes, definitely! It’s ideal for anyone who is new to trading, because we keep it simple. We’ll teach you the fundamental keys to successful trading—managing risk, and practicing patience. We’ll also cover basic concepts, and technical analysis. We’ll do all the heavy lifting so that our trade alerts will be very clear to even the newest trader.
We aren’t interested in betting on a coin toss. Using our trading indicators, we enter trades when we believe they have at least an 80% probability. A weighted coin, if you will. We never feel compelled to rush into a trade just to make something happen. While we already wait for a high probability of success in a trade, we also don’t want to enter a trade that can’t earn us a high reward relative to the risk. At a minimum, a trade needs a reward:risk ratio of 2:1 to earn our consideration.
Wanderer Financial Newsletter
- Weekly Newsletter containing market commentary, trade setups, and stories unique to a wandering trader’s lifestyle.
- Market Commentary containing:
- News Recaps – easy to understand, simplified review, of the global financial news.
- Weekly trade setups – review of current trades, as well as potential trade setups that we are watching.
- Simple, easy-to-understand charts with notes and explanations.
- Real-time Trade Alerts delivered via email. Alerts include entry prices, exits, stop-losses, and percent of model portfolio allocated for trade.
- Complete Web Access to our subscriber-only site which includes:
- Access to a member-only Trading Resource Center
- Access to all past newsletters
- Current trade updates
- Beginner to Advanced Lessons & Guides
- Mobility. This is the perfect trading system for anyone who wants to actively generate income while living a mobile lifestyle. It’s ideal for:
- Full-time travelers/wanderers
- Trading enthusiasts who don’t want to devote their entire day to researching the markets, but still want to be actively involved, taking control of their portfolios.
- Anyone who wants to trade, yet still find plenty of time to enjoy life!
We recognize that you may not check your email constantly. Therefore you can sign up for instant alerts via Twitter notifications and Twitter SMS alerts – even if you don’t have a Twitter account. Read the detailed instructions and all the fine print by clicking here.
Not necessarily. Why? Because our philosophy revolves around patience and waiting for the perfect market setups. Only when all of our trading criteria are met will we recommend a trade. We never force trades to happen, so some weeks may be a lesson in patience.
Yes, our subscribers will have access to a list of our current and past trades.
Trading discipline means the market will determine the frequency of trades. We only trade when the setup meets all of our criteria. We NEVER force trades. Therefore, it is hard to predict how often the market will give us these opportunities. However, based on past experience, we expect to average between 15 and 30 trades per year.
We primarily trade ETFs and the occasional individual stock.
No. For charting purposes, we track the actual commodity, but for our traveling lifestyle, we prefer to trade ETFs that duplicate or provide leverage to the commodity we are attempting to trade. This also simplifies trading in IRA and some 401K accounts.
We send out our real-time trade alerts via email.
Absolutely. If it were possible to trade the left side of the chart, we would enter every trade at the absolute lowest price, and we would exit at the highest price. Furthermore, we would do this 100% of the time. Unfortunately, we are only able to trade the right side of the chart, where we can’t know for sure if we are at the top, past the top, or if it is still ahead of us. Because we do not know the future, we have to gauge probabilities and exit when our indicators tell us to do so. It is simply impossible to catch the exact top and bottoms of trends with any degree of consistency. Fortunately, we don’t need to in order to succeed at trading.
We will typically take trades where the risk reward will still be favorable if your purchase price is within 1% of our price. If the price has already risen beyond that, don’t worry, the market never stops providing trade setups. If you miss one, it is better to just pass on the trade and wait for the next one.
Just about any online brokerage is fine—Fidelity, TD Ameritrade, Merrill Lynch, Optionshouse, etc.. There are countless out there, and these days all charge about the same $5 to $7 to place an online order. We don’t highly recommend any one over another. If you’ve already got an account somewhere it is likely that will work just fine for you.
We’d personally feel comfortable making these trades with as little as $10,000, though there are certain trades we might not make with that amount, which we’d point out in the Trade Alert. With an account of $20,000 or more we could make any trade we like.
Our trades are usually in a leveraged ETF, which is an instrument that follows a particular commodity or index. So, while they are designed to track those instruments, they don’t do so exactly. So for charting purposes we still use the specific chart for that underlying commodity. For example, when trading Gold we may use DGLD for the trade, but still use GOLD for the charting. That’s simple enough, but the tricky part comes in trying to determine where our stop price will be in DGLD. It’s simple enough for us to see where it is on the GOLD chart, but is impossible to nail down with the same precision when transferring over to DGLD.
As such, we will issue our stop prices like this. DGLD stop: GOLD $1280.20 / DGLD ~$46.50
This indicates the exact point in Gold that would trigger our stop trade, and gives an approximate price of where we expect DGLD to be trading at that time. The emphasis then is on the GOLD price. If the stop price becomes in play we will issue an alert specifying if the stop price in DGLD needs to be adjusted.
Our model portfolio for Wanderer Financial begins with a $100,000 account. Each individual’s circumstances differ, obviously, but we will specify in the Trade Alert what we feel is an appropriate trade size. For example, if we specify a trade for 10% size in a $20.00 ETF, a $100,000 account would trade $10,000 worth, or 500 shares. It’s not important that you get the quantity exact with each trade, but you should aim to be close. Our trade size is not a number pulled out of a hat. We weigh a lot of factors to determine this number—most importantly, risk.
Our stop prices are placed at very specific levels. Levels that are set based on fundamental analysis at the time of our entry into the trade. These levels are set just below strong levels of support on the charts so that if the stock pulls back down there is a good chance that it will then find support again and bounce BEFORE it hits our stop price. If we just blindly move our stop price up (and now it is ABOVE a support line) because we are making money one day, it stands a good chance that the stop will be hit, even when the story for the stock hasn’t changed. Now you run the risk of being stopped out only to see it reverse again immediately.
That being said, occasionally we do move our stop prices up to be sure and lock in some gains in case the market reverses. However, we don’t blindly set a trailing stop loss. To reiterate, we do move our stops up from time to time, but when we we will issue a Trade Update via e-mail and update the Portfolio page of the site.
Quite literally, the newsletter and trade alerts are made to be traded by anyone, no matter their level of experience. When people say they are total beginners, they really mean it. We’ve got an article on the site showing people exactly, step-by-step, how to place a trade. We give you the stock ticker symbol, the price to buy at, and the price to sell at, and the price to set your stop losses at. That is all you really need. For those that are seeking it, we also give a lot more information. We show the charts we are looking at, and we discuss the news and other stocks that are affecting our trades and the market as a whole. Basically, we give you the full back story for every trade so that if your friend asks why you bought XYZ, you can actually tell them.
With the resources on our website and those contained in the newsletter each week, you will learn quite a bit as time goes on. So much so, that you’ll no longer be a beginner!
Our stop prices are set at very specific levels—often just a few cents below a strong support level or trendline. What that does is it often allows us to stay in a trade that might otherwise have knocked us out. With a trailing stop you end up with completely random pricing of your stops, so you are doomed to be knocked out of the trade even when the stock/etf is just experiencing a normal pullback before rocketing off to new highs. That said, we often do move our stops up at some point during a winning trade. Even this number won’t be completely random, but it will be designed for us to lock in some amount of profit. The target prices are set in the same manner—at levels just below where we feel there should be significant resistance. Be aware that we are constantly monitoring these trades and if either level appears that it should be moved at any time, we will issue a Trade Update via e-mail and update the Portfolio page of the site.
We do recommend a trading account minimum of $10,000. Part of the way that we control risk with our trades is through the selection of trade size, which is a percentage of your entire trade portfolio. With a $10,000 account we might make a trade in a stock that is $40.00 per share with a trade size of 10%. That would mean that you should risk $1,000, which buy you 25 shares of that stock. If we were to make 10% on the trade, a $10,000 account would make $100. That’s 1% of the overall account, which would be a nice return for a single trade. However, you can see how the numbers would look if the account were smaller. $5,000 account would make $50—still 1% of the acct, but subtract a few dollars for commissions, and suddenly it takes a many more good trades in order to cover expenses and become profitable on the year. The smaller the account, the more sizable chunk of each trade the expenses take on a percentage basis.
An ETF, or exchange-traded fund, is an investment fund that trades just like a stock on a stock exchange, but it is typically based on an index or a sector. In general, an ETF holds assets such as stocks, commodities, or bonds, and trades close to its net asset value over the course of the trading day. Since we typically focus on the commodities sector, by using ETFs, we get to trade a basket of stocks by buying only one instrument.
A Leveraged ETF (we call it a 3X ETF) simply takes the ETF concept further. A 3X ETF seeks to triple the return of the underlying sector or commodity on a daily basis. For example, UGLD seeks to triple the return of GOLD on any given day. 3X ETFs are trading vehicles only, and are not meant to be long term investments.
A bullish ETF (or long ETF) profits if the underlying goes up. NUGT is a bullish 3X ETF that tracks the gold sector. If you expected gold to rise, you could buy NUGT to profit from that move.
A bearish ETF (or short ETF) profits if the underlying goes down. DUST is a bearish 3X ETF that tracks the gold sector. If you expected the price of gold to fall, you could buy DUST to profit from the drop.
The opposite of bearish. A belief that the stock price will go up in value. If you are bullish the market, you would look to “go long” the market.
A belief that a stock price will decrease in value. If you are bearish the market, you would be most interested in “shorting” the market. Our version of shorting the market would be to purchase inverse ETFs.
When two assets that normally have similar price movements start to move in opposite directions, they create a divergence. Divergences between assets that normally have a very strong correlation often provide an early warning of a pending price trend reversal.
When two different assets have similar price movements, they are correlated. Sometimes these correlations are coincidental, and sometimes they are meaningful.
The natural rhythm of highs and lows visible on a chart. A daily cycle is the the shortest cycle we study. They typically last from 2 weeks to 2 months in duration. An intermediate, or investor cycle is the sweet spot for us. They typically are 4-8 months in duration, and are made up of multiple daily cycles. We wrote a more in depth article on how we trade cycles.
You will hear us talk a lot about whether a cycle is right- or left-translated.
We are referring to whether the peak of the cycle is to the right or left of center. It matters, because generally, a right translated cycle makes a higher low, and a left translated cycle makes a lower low. An example of each can be seen in this chart.
A line that is drawn on a chart that connects a stock’s previous highest or lowest prices. Trendlines are drawn to determine possible points of support or resistance.
A technical indicator such as a trendline or a moving average that is below the current price, and is commonly known to halt the downward movement of price.
A technical indicator such as a trendline or a moving average that is above the current price, and is commonly known to halt the upward movement of price.
The price trend that lasts typically between three to eight months.
The price trend that lasts months to years. Otherwise known as the secular trend.
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Yes. You will receive a notice 1-month before your subscription is set to renew for another year.
Our minimum subscription period is one year. The reason for this is two-fold. First, we have been trading for decades, and one thing we’ve learned is that to fully grasp the concepts we teach you for consistent success, and how to apply them over a variety of market conditions, takes time. Secondly, we put a lot of time and effort into not only the newsletter, but all of the material here, designed to teach our subscribers what we’ve learned through years of market experience. We enjoy passing on our knowledge, and specifically want committed subscribers. We do not offer a refund on cancellations.
Yes. For us wanderers, the whole world is our backyard.