Mindful Trader Review 2021: Supercharged Stock Picks
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The stock market can be a chaotic place. There are few better examples of this than 2020, which has seen both unprecedented declines and gains in the market. I know when I saw all the craziness unfold, it made me want to take it all off the market.
And I was not alone, because the stock market fell 34% in only 33 calendar days in 2020. This is the biggest drop during this period in the history of the stock market, which only happens if a large number of investors panic.
Fortunately, services like Mindful Trader can help. While this can’t stop the stock market from experiencing huge declines, it can help you make better trading decisions. Mindful Trader offers choices and focuses on swing trading.
If you’ve primarily invested in index funds and maybe invested in a few individual stocks here and there, you might not be familiar with swing trading. This review will help you better explain what they are and how they can help you make better, more profitable trades.
Eric, who runs Mindful Trader, had a 146% median return back test rate over the past 20 years. It’s a pretty fantastic performance, so we’ll also explain how it got there and how you can do the same.
What is Mindful Trader?
Mindful Trader is a stock picking service that focuses on swing trades. Swing trading is a form of short-term equity trading with the aim of capitalizing on short- to medium-term price increases. Eric developed the service using 20 years of data and statistics.
Eric graduated from Stanford University with a degree in economics and even got a perfect score in the math section of the SAT. He started the service because, despite his background in economics, he first lost money when he started trading. He started looking for a service that met his needs, but to his dismay, he couldn’t find one.
Eric discovered that there were no good trading services that matched his preferred style of trading that were backed up by research and that the service was not just based on a sales pitch. He wanted something better – something that was backed by research and had a track record of success.
So Eric started Mindful Trader to fill the role he lacked.
Conscious trader’s trading style
Mindful Trader uses a statistic, data-driven approach to trading. In other words, it’s not just based on what’s hot or what interests him at the time. If you sign up for Mindful Trader, you’ll copy Eric’s style, but you’ll find he’s pretty thorough in his approach.
This video is a bit technical, admittedly, but what really stands out is the fact that Eric has executed over 5,000 sets of code. From there, he narrowed it all down to a dozen sets of codes that guide his statistical approach.
Imagine the time it took to test so many sets of code! Well it has 20 years of return data so that should tell you something.
Eric still uses multiple strategies to buy and sell stocks that “create diversity, reduce risk exposure and can better compound returns”. And he’s testing all of these strategies against his 20 years of data. Every strategy must succeed regardless of the profit / loss criteria.
Each strategy is tested with the Monte Carlo method, which means that it uses random sampling of data to model the probability of different outcomes. It uses over 10,000 different variations in these tests.
Mindful Trader Returns
And now to the good stuff. After all what are you really want to know what kind of return you can expect, right? Well, we’ve got you covered.
Eric provides 20 years of performance data to show he knows his stuff. Its median annual return for the past 20 years is 146%. In other words, it is its median return per year.
Of course, things haven’t always been so rosy. The Dot-com bubble hasn’t dealt with it so well, and it looks like 2020 is similar due to COVID-19.
Annual Mindful Trader Returns:
Even in Eric’s tough years, he still had positive returns – 6% and 8% in 2001 and 2002, respectively. And his return in 2008, during the Great Recession? 72%.
That’s pretty impressive considering these are his “bad” years. Most passive investors expect an average long-term return within this range. Its approach isn’t exactly passive, but it takes care of all the data for you – all you need to do is execute the trades when it releases stock picks.
Eric also provides a running list of his actual daily returns for each of the past 6 weeks. The list is updated daily so you can get a full idea of what to expect.
It is also transparent and honest that past performance is no guarantee of future performance. That being said, his 20 year return is certainly encouraging.
Start trading with Mindful Trader to boost your portfolio.
Mindful Trader Features
If you’re going to pay a monthly subscription fee for a service, you probably want to make sure you’re getting your money’s worth. Let’s take a look at what Mindful Trader has to offer.
Choice of actions
Stock selection is the main feature of the service. You can expect to receive an average of 6-8 choices per week, but it can vary a bit. Some weeks may not have a choice, while others may see a double-digit choice number.
The action choices will look like this:
It might seem a bit confusing or technical if you’re new to them, but it’s actually not too bad once you know what’s going on here. Let’s break it down piece by piece:
- Bought or shorted. “Purchased WMT” or “Purchased ETN”: symbol of the share he traded. Note that there may be times when he says “shorted” instead of “bought” as he sells short. However, most of the choices will be for shopping.
- Sale price. After the indication “bought” or “short-circuited” is the sale price. This is the price he paid or sold the stock.
- The target price. This is the price that the stock must reach before its next action. If he just bought a stock, it must meet the profit target before it can sell it for profit. In the case of a short sale, the price must fall towards the target before the stock can be redeemed.
- Stoploss: This is a basic tool that all active traders use. If the stock moves opposite of the direction it expects (and opposite of the direction it needs to move to generate a profit), you can have a stop-loss at a certain price. This will allow you to automatically sell (or buy) at a certain price and then move on to the next trade before your losses get worse.
As you can see, the choices are straightforward, straightforward, and easy to follow.
Note that Eric sometimes deals in MES futures, which you can see in the snippet above (denoted by / MES). These look a bit like trading in the S&P 500, but they use leverage.
This makes them riskier and futures contracts can be particularly speculative. If you are not comfortable with this style of trading, you can always ignore them; the other trades should still make the service interesting.
Mindful Trader pricing
The cost of Mindful Trader is $ 47 / month. It is more expensive than purchasing and custody services like The motley madman, but it is less expensive than day trading services such as Underground investors. The expected returns for Mindful Trader also fall between these other services, so the price seems right on point.
Plus, Eric spent $ 200,000 of his own money to develop the service, so you’re clearly getting a steal by comparison! Currently there is only one monthly plan available.
What do i need to get started?
Other than signing up for the service, all you need is a brokerage account and some money. Eric uses TD Ameritrade, but whichever brokerage you prefer will work. While it’s possible to emulate Eric’s strategy with less starting capital, he recommends at least $ 10,000 to get started.
It may sound like a lot, but one thing to remember is that The Mindful Trader charges a fixed monthly fee. Services that charge a fixed monthly fee are almost always more beneficial with the size of your wallet.
This is because they don’t charge a percentage of your wallet, so the amount you pay in fees never increases. Of course, The Mindful Trader doesn’t manage your portfolio for you, so fixed fees make sense.
Is Mindful Trader Right For You?
As with any service, Mindful Trader won’t be the best choice for everyone. Here’s who it’s best for:
- Those who want to maximize returns but don’t have the time / risk tolerance / capital for daily trading
- Those who prefer a data-driven approach
Overall, Mindful Trader delivers strong performance in the form of easy to follow stock picks. Eric is honest and transparent, and has 20 years of data to prove that his approach works year after year.
If swing trading is your cup of tea, so is Mindful Trader.
Click to Mindful Trader Pricing and Details.