Predicting the performance of a stock or ETF over the next one to two months, Prospero's short-term signals help you see how institutions and options traders view the stock. The number represents their percentile with ranks 80 and above considered high and 20 and below considered low. While short term trading is risky, it can be lucrative for seasoned traders.
Before considering short-term trading, you should be aware that it is more complicated and has higher risk than long-term investing. It is easier to overlook factors in the short term and be outmatched by new-world complexities such as high-frequency trading and payment for order flow. The absolute safest way to invest is to identify a stock that has promising short-term signal ratings AND stronger long-term signal ratings as well. Nothing beats that. However, frequently the long-term and short-term signals can be at odds.
The best possible combination of signals for short-term long positions are high Net Social Sentiment, Net Options Sentiment, Net Institutional Flow, and low Dark Pool Rating and Short Pressure Rating. But the chances of seeing an actual Unicorn with an actual horn are higher than seeing a stock with this combination.
As an example, stocks with high Net Social Sentiment, Net Options Sentiment, and Net Institutional Flow are a good bet that a stock will go up. However, this is a great example of why it is important to look at risk. All of these numbers could be high one day and fall off a cliff the next from a piece of bad news, a large institutional sale, or a purchase of put options (options bought if you expect the market to go down). The fact that any sudden market shifts could leave you with a fairly large single-day loss is what makes short-term investing so risky. Prospero doesn’t recommend short-term trading as an investment strategy for most investors. But even if you never become an advanced trader you can weigh them along with our long-term signals to reduce risk and improve timing on your investing strategies. They are powerful, and with a strong trading knowledge base, the dedication required to watch these signals constantly, and additional trading insights, they can be an instrumental part of any trader's toolkit. Prospero.ai prides itself on our technology which refreshes much faster than a price target. But no increase in the speed of information delivery will allow you to beat a high-frequency trading algorithm. It is always important to remember what you are up against.