Mindful Trader Review

Rating

4.1

Introduction

Eric spent years searching for the “truth” about which strategies actually make money in the stock market by digging relentlessly through  historical data. He is a Stanford grad who got a perfect score on the math SAT test, so digging through numbers is right in his wheelhouse.

As a swing trader, you probably understand how volatile the stock market can be. It’s easy to get caught up in the moment only to end up engaging in emotional trading – and we all know how that normally ends up. Enter Mindful Trader by Eric Ferguson, which strives to teach how to make moves in the market based on data rather than emotions.

In this review, we shall tell you all you need to know about this stock-picking service so that, in the end, you can decide whether it is the right fit for you (or not).

An Overview of Mindful Trader

As its name suggests, Mindful Trader is a stock-picking service that advocates for a data-driven approach to trading. The service is meant for swing trading i.e., whereby you open trades and wait for them to materialize in a couple of days.

One thing we like about this AI-driven stock picking service is that it does all the heavy lifting for you thereby saving you precious time that would otherwise be wasted on research. Got a busy day job? Well, the time-saving aspects of this service could be the boost you need to turn your stock trading game around.

What’s more, the program is packed with features that make for a short and smooth learning curve. It is clear that every little thing about this scanner is designed with beginners in mind.

About the Founder

Eric Ferguson is the brains behind Mindful Trader. He is a graduate of Sanford University where he majored in economics and mathematics. You won’t find many students with perfect scores in math but Eric is one of the few exceptions.

His Economics background and his mathematical prowess enable him to apply his knowledge to market trends with relative ease. 

Following his conquests in the world of swing trading, he decided to put his twenty years of data and statistics knowledge to use by launching the Mindful Trader service.

Something worth noting about Mindful Trader is that it is based on a robust back-testing system that effectively minimizes your risk exposure. Apparently, he uses the popular Monte Carlo method for this. 

In case this is your first time hearing about Monte Carlo, it is a simulation that involves predicting outcomes based on random variables. It's popularly used in physics and engineering but through Eric's inventions, you'll be able to take full advantage of it with a simple touch of a button (forgive the cliché).

Key Features of the Program

Eager to find out how exactly this service works? Let's break down its key features for you.

I) Stock Picks/Trade Alerts

This is probably the core feature of this service and it entails 6 to 8 stock picks sent out to subscribers per week. That said, the numbers vary from time to time. At times he sends more than 10 and in some cases 0 picks.

Each alert is made up of different parts, and we shall break them down for you below:

Price

This is Eric Ferguson's entry price that he intends to use to open new positions. This kind of information is crucial as it helps you to align your strategy with his – especially if you’re into copy trading.

Position

The position is the part that tells you whether you should buy (go long) or sell (go short). In Ferguson's case, he buys more than he sells. But this does not mean that you won't get 'short sales' alerts from time to time.

Profit Target

In simple terms, it is at this price that Ferguson will close his position and gain some profit. 

Ticker

If a company is listed on the NYSE, it will be given unique reference ticker letters to represent its stock. For instance, an alert for Amazon will have the ticker listed as AMZN.

Stop-loss

Every successful trader needs to have a risk mitigation strategy in place just in case. And with that in mind, each Mindful Trader alert comes with a stop loss suggestion that you can use to safeguard your account as you open live trades.

Time Limit on Trade

Also referred to as the holding time, this feature is meant to alert you on the exact time to expect Eric Ferguson to close his position whether it’s profitable or not.

Once again, this kind of information can come in handy if you’re into copy trading.

With the above information, you are likely to experience three scenarios:

  • Your trade hits stop-loss and closes
  • Your trade hits the target profit and closes
  • Your trade closes on reaching the time limit due to the above two not happening

Note that the frequency of the alerts depends on market activities, so they can be high and low at times.

II) Trading Education

Another vital aspect of this service is the educational videos that could help traders of all levels boost their trading game. Here, you'll find videos in which Eric guides subscribers on various basic and advanced trading strategies.

In addition, Eric teaches you a thing or two about trading indicators.

Recently, a new set of educational videos has been added to the platform. This includes basic information on options and futures education and strategy clips.

Looking at the kind of educational content that he creates, there's no doubt that Eric is a one-of-a-kind trainer. He comes across as a likable and trustworthy guru who is really good at striking a bond with his learners.

III) Direct Contact with Ferguson 

Speaking of personal contact, Ferguson stands out from other program developers in that he welcomes direct contact with the service's subscribers. So, once you sign up for Mindful Trader, you will get access to his personal email.

Whenever you have any queries, you can contact him at this address whereby won't be long before you get a response from him. Eric enjoys contact with his followers so much that he even allows phone and zoom calls if the need arises.

IV) Backtesting Tool

Trading without backtesting is akin to driving on a busy street while blindfolded. It’s therefore, encouraging to note that Eric has invested in what is possibly the best backtesting system on the market currently.

The system covers historical data spanning over twenty years. Yup, you read that right. With this, you’ll never be short of data to test-drive your trading strategies.

And just to give you a rough idea of the kind of value we’re talking about here, Eric claims that he spent over $200,000 and over four years of his time to perfect this tool.

V) Wealthy Heart Blog

Eric expands the educational aspect of this service by including this blog to teach you the importance of mindfulness during economics analyses. This way, you will likely easily understand the strategies included in this service to identify the ideal stocks for swing trading.

And the subtitle "emotions around money" seems perfect for blogs offering calming strategies and other tips on making money.

VI) Paper Trade (Demo Trade)

Keep in mind that since this is not a brokerage platform, demo trading isn't incorporated into the service. However, Ferguson thinks it's best to try out his strategies in a demo account in a separate brokerage platform to enable you to understand the process better. He seems to favor the Think or Swim brokerage service in his educational courses, though.

VII) Bonus Email Alerts

Besides the stock trade alert services we have broken down, Eric will also send you market commentary emails paying attention to a wide range of topics. These include stock-pick updates, the financial markets, current positions, expected changes, and so on.

Mindful Trader Returns/Performance 

From the 20-year performance data that Eric provides, we can estimate his median annual return per year to be 146% over the period.

As you would expect, the ride hasn't always been smooth for him, and there were several turbulent times over the period. Some of the significant incidences include the 2020 Covid-19 pandemic and the Dot-com bubble in early 2000.

However, it is worth noting that Eric noted positive returns in years that were otherwise considered 'bad.' For instance, a return of 72% during the 2008 recession is well within the range of what most investors hope for.

Other than the 20-year performance data there’s also a list of Eric's actual daily returns for the preceding six weeks. This is updated on a daily basis so that you get a clear picture of how the guru himself is faring.

Investor’s Security

The core function of Mindful Trader is to provide you with stock trade alerts that you can emulate and execute your trades. So, at no point will it manage your investment portfolio or gain access to any of your sensitive information.

When signing up, the only personal information required will be your email address. No other personal details will be needed.

As for your account's security, it is up to you to find a broker who will assure you of your account's maximum security.

Pricing and Cancellation/Refund Policy

Are you interested in Mindful Trader? To access all the service has to offer, you will have to pay a subscription cost of $47 per month. 

Although this pricing may seem steep relative to other services, such as Motley Fool Stock Advisor, it will appear reasonable once you consider how much Value Eric’s program offers in return. Think of the Mindful Trader backtesting tool, detailed alerts, personalized attention, etc and you'll see that the service is actually a steal at its current price.

When it comes to cancellation, you can do so at any time without any stringent conditions. As a monthly subscription service, you won't be locked into the typical billing cycles such as quarterly or annually.

Is It Legit?

Several factors point to this service as being legit. First, it is backed by over twenty years of historical data analysis. In addition, you are only required to subscribe for one month's membership, whereby you'll get full access to the service once you sign up.

You'll also note that the program has a high level of transparency where you even get the chance to have direct contact with the founder.

And to top it all up, Eric Ferguson is well-known out there in the trading circles. We're yet to come across any scandals associated with him so far.

Which Trader Is It Best For?

Like any other swing trading service, Mindful Trader won't be everyone's cup of tea. So, it will work for you if you are a trader: 

  • With a high preference for a data-driven approach
  • Who wants maximum returns but lacks the time and capital to day trade

The stock picks provided here are easy to follow, plus you will have the backing of over 20 years of historical data that you can use for backtesting.

Pros and Cons

Like every other thing on this planet, Mindful Trader has its share of advantages and disadvantages. Luckily, the former is more than the latter, and we shall summarize them below.

Pros

  • You can cancel your subscription at any time
  • Easy to follow and understand
  • Packed with educational resources
  • High level of openness
  • Detailed alerts
  • Backtesting tool

Cons

  • Newbies may find it too pricey
  • No alerts for new trades

Conclusion

From our desk, we can tell you that Mindful Trader is a service that aims to provide you with top-notch insights on swing trading. If you want to monitor how Ferguson's stock alerts are performing, you can sign up for his mailing list without necessarily subscribing to the service.

Further, he regularly posts videos and blogs to update you on significant developments in his portfolio and the general stock market world. He does a great job in explaining every detail so that you can have it easy when the time comes for you to place a swing trade.