Welcome to IntelliTrade! If you are reading this article, that means you have most likely already signed up for your free trial. If you have not, please visit https://user.intellitrade.app/signup to gain full access to the services we provide. This article will serve as all the core info you should know to use the app and understand any phrases we use.
Types of orders in the app feed
Buy- An order to purchase a specified stock, option, or cryptocurrency.
Sell- An order to sell a previously purchased stock, option, or cryptocurrency.
Short- An order to sell a stock that one does not currently own, we understand that not everyone can short stocks so if an alternative put option is available, it will be listed.
Cover- An order to buy a stock that was previously shorted.
What is an option?
Buying an option gives you the right to buy (a call) or sell (a put) a stock at a certain price (the strike price) by a set time (expiration date) for a purchase price (premium). When trading options, you have a high risk of losing the entire purchase value, so it is important to follow a portfolio management strategy. Our trade recommendation will state the company, strike price, premium, and price to pay.
Example: Buy Apple $130 calls expiring 9/18/20 at $1.00.
Important Note: Each option contract represents 100 shares, so in this example, each contract purchased would equal $100.00, not $1.00.
General Portfolio Management Tips
Everyone has different levels of risk tolerance and investment goals. At IntelliTrade, we only provide recommendations on a group basis, and not on an individual level. When placing stock and cryptocurrency trades, we recommend no more than 10% of capital to be placed on any single trade. For options, we suggest at most 1% of the portfolio value since they often expire worthless (refer to "What is an option" above).
Examples below with a $10,000 trading account:
IntelliTrade recommends buying stock in Apple, you should buy $1,000 of Apple stock.
IntelliTrade recommends shorting Apple Stock, you should only short $1,000 of Apple stock.
IntelliTrade recommends buying the Apple $130 call at $1.00 a contract, since each contract is for 100 shares, the cost is $100 ($1.00 X 100) per contract, one should only buy one contract.