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In this guide, we ll show you the four simple steps to trading stocks with The Wizard. It s important to us that you understand what to do before you learn how to do it, because once you learn this simple process, everything else will make sense. This guide is broken into 5 parts: Part : Our 4-Step Process A diagram of the simple, 4-step process to trading stocks with The Wizard. Part 2: Check the Market s Trend See today s trend with Market Trends. Part 3: Run your Scan Use our custom scanning tool to find the best stocks to buy or sell. Part 4: View & Select your Stocks Viewing your results and selectng the best stocks to trade. Part 5: Place your Orders with your Broker Some resources for placing your orders.
Part : Our 4-Step Process A diagram of the simple, 4-step process to trading stocks with The Wizard.
The 4 Steps to Trading Stocks with The Wizard Step : CHECK THE MARKET S TREND Step 2: CHECK FOR BUY OR SELL SIGNALS Step 3: SELECT YOUR STOCKS Step 4: PLACE YOUR ORDERS WITH YOUR BROKER
Part 2: Check the Market s Trend See today s trend with Market Trends.
Step : CHECK THE MARKET TREND The Wizard is based on a very simple but time-tested philosophy: It always follows the Trend - or direction - of the stock market. When the stock market is moving up, The Wizard issues signals to buy stocks. When the stock market is moving down, The Wizard issues signals to sell stocks short. When the market is moving sideways, the Wizard issues neither buy nor sell signals. Instead, it simply stands aside and waits for the market to begin moving up or down again. This is why we check MarketTrend first. The Wizard makes identifying the Market Trend easy. On the top right of every page in our site, you ll see our Market Trends box. It always tells you what current Trend of the stock market is. THE MARKET TREND BOX IS ALWAYS AT THE TOP RIGHT OF EVERY SCREEN
Step : CHECK THE MARKET TREND The stock market has three possible directions: Buy, Sell or Sideways. Buy: 2 green arrows Sell: 2 red arrows Sideways: Mixed colors Any combination of mixed colors indicates the trend is Sideways - neither Buy nor Sell.
Part 3: Run Your Scan Use our custom scanning tool to find the best stocks to buy or sell.
Step 2: CHECK FOR BUY OR SELL SIGNALS Now that you ve checked MarketTrends, it s time to look for trade signals. The Wizard gives you three ways to find stock signals. For this tutorial, we re only going to focus on Create a Scan. To learn about our Browse Sectors and PowerScans tools, please see those tutorials. Create a Scan Our flagship scanning tool. Unlimited options for finding stocks made amazingly simple. Browse Sectors Our most advanced tool for stocks, it allows you to pinpoint your investing even more by finding the strongest - and weakest - sectors and industries. PowerScans The Wizard s pre-built scans. Powerful scans with a single click.
Step 2: CHECK FOR BUY OR SELL SIGNALS Your Scan Options: The Wizard s Create a Scan tool has several options with which you can customize your scans. Select a category Select stocks 5 Select the Trend 2 Select a timeframe Select daily (every day) or weekly 6 Select a Price Range (Optional) You can select a minimum and maximum price and a minimum volume. (every Friday) signals 7 Search for a Symbol 3 Select a Scan Type Conservative (take profits along the way) or Aggressive (exit all at once) 8 Create your Scan Select Pre-Buy (for buy signals only) 4 Select an index Pre-Sell (for sell signals only) Or Scan All (for buys, sells and open signals) 7 2 3 4 5 6 8
Step 2: CHECK FOR BUY OR SELL SIGNALS Option : Look for Pre-Buys or Pre-Sells If you re only looking for entry signals, we recommend choosing either Pre-Buy or Pre-Sell signals, depending on what the market s trend is. 2 The Market s Trend is Sell Because Market Trends is indicating a Sell signal for the market, we are going to look for Sell signals in stocks. Scan for Pre-Sells To scan for sell signals only, click the Pre-Sell button. (If we were looking for buys signals, we d click the Pre-Buy button.) 2
Step 2: CHECK FOR BUY OR SELL SIGNALS Option 2: Scan for all stocks If you want to see all stocks, including all Pre-Buys, Pre-Sells and open trade signals, just click the Scan All button.
Part 4: View & Select Your Stocks Viewing your results and selecting the best stocks to trade.
Step 3: VIEW & SELECT YOUR STOCKS Scanning for Pre-Buys & Pre-Sells Once you ve scanned for Pre-Buys or Pre-Sells, The Wizard shows you a list of stocks. Here s an overview of what you ll see. Stock symbol & name 5 The previous closing price. 2 3 4 Sector/Industry for each stock The trend for each stock Just like the market, The Wizard provides a trend signal for each stock. The previous closing price. 6 7 8 The Pre-Buy (or Pre-Sell) Price The price at which you ll buy (or sell) this stock. The Wizard s Stop Price The Wizard s Profit Targets 2 3 4 5 7 8
Step 3: VIEW & SELECT YOUR STOCKS Viewing your Scan Results When you scan for all stocks, you ll see a few more options, including stats for open signals. Here s an overview of what you ll see. Stock symbol & name 6 The Wizard s Entry Price. 2 Sector/Industry for each stock 7 The Wizard s Stop Price 3 The trend for each stock Just like the market, The Wizard provides a trend signal for each stock. 8 9 The Wizard s Profit Targets Days in the trade 4 The previous closing price. 0 Profit/Share 5 The Wizard s Entry Date. % Profit 2 3 4 5 6 7 8 9 0
Step 3: VIEW & SELECT YOUR STOCKS Symbol / Company Name The Wizard shows you the ticker symbol and the company name for each stock in the list. 2 Rollover any stock symbol and you ll see options to: Add that stock to a Portfolio Add it to a Watchlist View a detailed quote View the options chain for that stock View a chart showing the price levels for The Wizard s current signal for that stock. 2
Step 3: VIEW & SELECT YOUR STOCKS Buy Price / Sell Price 2 Buy Price When you look for Buy Signals, The Wizard will show you the exact price - down to the penny - at which to buy each stock. Sell Price When you look for Sell Signals, The Wizard will show you the exact price at which to sell short each stock. 2
Step 3: VIEW & SELECT YOUR STOCKS Stop Price The Stop Price is the price at which you will get out - exit your trade. The Wizard s Stop Price acts like an insurance policy. In the event that your trade loses money, the Stop Price is where you will exit in order to avoid a large loss. Because some of your trades will inevitably lose money, it is critical that any losses you do have are kept to a minimum. The Wizard s Stop is known as a trailing stop. This means that if you buy a stock and its price goes up, the Stop Price will follow up behind it, locking in your profit along the way. This way, if the stock does reverse and go back down, you will not give back your profit. Exit your entire position at the Stop Price: Whether you have taken profits or not, you will exit your entire position at the Stop Price. For Buy Signals, if your stock s price drops to the Stop Price or below, you will exit immediately. For Sell Signals, if your stock s price rises to the Stop Price or above, you will also exit immediately.
Step 3: VIEW & SELECT YOUR STOCKS Buy Signal Profit Targets Buy Targets For each Buy Signal, the Wizard provides two prices at which to take profits. When your stock reaches one of The Wizard s profit targets, you will sell a certain number of shares. 50% Target: At this profit target, you will sell 50% of your shares. If you had bought 00 shares, you will sell 50% at this price. 75% Target: At this profit target, you will sell 25% of your original share size. Again, if you had bought 00 shares, you will sell 25 shares at this price. At this point, you will have on 25 shares remaining. You will have sold 75% of your position, which is why it s called the 75% target. At this point, you will exit the remainder of your position at the Stop Price. The Wizard s Profit Targets allow you to take profits as you go along. As the old saying goes, You can never go broke taking profits.
Step 3: VIEW & SELECT YOUR STOCKS Sell Signal Profit Targets Sell Targets For each Sell Signal, the Wizard also provides two prices at which to take profits. When your stock reaches one of The Wizard s profit targets, you will buy back a certain number of shares. 50% Target: At this profit target, you will buy back 50% of your shares. If you had sold short 00 shares, you will buy back 50 shares at this price. 75% Target: At this profit target, you will buy back 25% of your original share size. Again, if you had sold short 00 shares, you will buy back 25 shares at this price. At this point, you will have on 25 shares remaining. At this point, you will exit the remainder of your position at the Stop Price.
Step 3: VIEW & SELECT YOUR STOCKS Aggressive Scan: No Profit Targets When selecting your scan criteria, if you select Aggressive under Scan Type, you will not see any profit targets. 2 Instead, you ll only see The Wizard s Stop Price and will exit your entire position at that price. 2
Step 3: VIEW & SELECT YOUR STOCKS Which Stocks Should You Select? We realize that you re not going to buy every stock for which there is a buy or sell signal. So how do you decide which stocks to buy or sell? We ve made it easy. Whenever you run a scan, The Wizard automatically ranks your list of results by their Trend Strength. The stocks at the top of the list are the strongest ones. The stocks at the bottom of the list are the weakest ones. To reverse the order of the list, just click on the Trend column and the list will automatically re-sort. Your highest probability trades are to buy stocks whose trend is Buy (double green arrows) and sell stocks whose trend is Sell (double red arrows)
Part 5: Place Your Orders with Your Broker Some resources for placing your orders.
Step 4: PLACE YOUR ORDERS WITH YOUR BROKER Your final step is to place your orders with your broker. In order to buy and sell stocks, you ll need a broker to place orders with. While The Wizard is not a broker and does not offer brokerage services, we do have alliances with certain brokers. You can find them by clicking on the Brokers button on the top right of the site.