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 1: 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
Part 1: Our 4-Step Process
Step 1:
CHECK THE MARKET’S TREND
Step 2:
CHECK FOR BUY OR SELL SIGNALS
Step 3:
SELECT YOUR STOCKS
Step 4:
Part 2:
Check the Market’s Trend
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.
CHECK THE MARKET TREND
The stock market has three possible directions: Buy, Sell or Sideways.
Buy: 2 green arrows
Sideways: Mixed colors
Any combination of mixed colors indicates the trend is Sideways - neither Buy nor Sell.
Part 3: Run Your Scan
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.
PowerScans
The Wizard’s pre-built scans. Powerful scans with a single click.
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.
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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.
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Select a category
Select “stocks”
Select a timeframe
Select daily (every day) or weekly (every Friday) signals
Select a Scan Type
Conservative (take profits along the way) or Aggressive (exit all at once)
Select an index
Select the Trend
Select a Price Range (Optional)
You can select a minimum and maximum price and a minimum volume.
Search for a Symbol Create your Scan
Select Pre-Buy (for buy signals only) Pre-Sell (for sell signals only)
Or Scan All (for buys, sells and open signals)
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CHECK FOR BUY OR SELL SIGNALS
Option 1: 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.
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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.)
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CHECK FOR BUY OR SELL SIGNALS
Option 2: Scan for all stocks
1 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
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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.
VIEW & SELECT YOUR STOCKS
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Stock symbol & name
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.
The previous closing price. 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
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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.
VIEW & SELECT YOUR STOCKS
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Stock symbol & name
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. The Wizard’s Entry Date.
The Wizard’s Entry Price. The Wizard’s Stop Price The Wizard’s Profit Targets Days in the trade
Profit/Share % Profit
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Symbol / Company Name
The Wizard shows you the ticker symbol and the company name for each stock in the list.
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.
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VIEW & SELECT YOUR STOCKS
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Buy Price / Sell Price
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.
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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.
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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 100 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 100 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.”
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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 100 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 100 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.”
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VIEW & SELECT YOUR STOCKS
Aggressive Scan: No Profit Targets
VIEW & SELECT YOUR STOCKS
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When selecting your scan criteria, if you select “Aggressive” under “Scan Type”, you will not see any profit targets.
Instead, you’ll only see The Wizard’s Stop Price and will exit your entire position at that price.
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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)
Which Stocks Should You Select?
VIEW & SELECT YOUR STOCKS
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Part 5: Place Your Orders
with Your Broker
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.
