Quick Guide for How to Buy & Sell Stocks with The Wizard
Simple but Sophisticated
Don’t let the name fool you: the scan may be simple, but behind the curtain is a very sophisticated process designed to bring you the stocks with the very best chances of making money. Each day, before you even press a button, The Wizard combs through close to 10,000 stocks. Using a proprietary algorithm and several powerful filters, The Wizard narrows this list to only a basket of the best ones. The Wizard follows a top-down approach that does the following:
1. Finds the best sectors: A sector is simply a category of stocks, grouped together by their general industry. Of the many sectors in the stock market, The Wizard identifies only the best ones.
a. For Buys: The Wizard looks only for the strongest sectors.
b. For Short-Sells: The Wizard looks only for the weakest sectors.
2. Finds the best Industries: Each sector contains a number of industries. Once The Wizard has identified the best sectors, it then looks for the very best industries within these sectors.
3. Looks for the big money:
A stock can only move if there is a lot of money behind it. If a lot of investors are buying it, this will create upward pressure, and the stock will move up. If a lot of investors are selling it, however, this will create downward pressure, and the stock will drop in price. The telltale sign of this pressure is called Volume. Volume is simply the number of shares that are both bought and sold during a given day. High volume indicates that there is big money – a lot of investors – behind a stock. The Wizard can filter for stocks that exhibit high volume over a 50-day period.
4. Matches the Trend of the stock market:
If the Market Trend = Buy,
The Wizard only looks for stocks whose trend is also a Buy.
If the Market Trend = Sell,
The Wizard only looks for stocks whose trend is also a Sell.
And the best part you don’t have to do any of this, because The Wizard does it all for you. All you do is choose a few simple options, run your scan and The Wizard will give you that day’s list of the very best stocks to buy or sell.
If that sounds easy, wait to you see how easy it is to actually run your own Simple Scan.
In this guide, we’ll show you the four simple steps to investing in 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 3 parts:
Part 1: What to do
A diagram of the simple, 4-step process to investing in stocks with The Wizard.
Part 2: How to do it
An overview of The Wizard’s features you’ll need for investing in stocks.
Part 3: How to learn
We want you to get up to speed as quickly as possible, so in this section, we’ve laid out the quickest, most optimal path to learning everything you need to get going now.
If you’re ever unsure about what to do, just refer back to this guide, and let us show you the way!
Part 1: What to Do
The 4 Steps to Investing in Stocks with The Wizard
Step 1: CHECK THE MARKET TREND
Step 2: CHECK FOR BUY OR SHORT-SELLING SIGNALS
Step 3: SELECT YOUR STOCKS
Step 4: PLACE YOUR ORDERS WITH YOUR BROKER
Step 1: 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.
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. To make it even easier, at the bottom of this box, The Wizard always tells you what you should be doing.
THE MARKET TREND BOX IS ALWAYS AT THE TOP RIGHT OF EVERY SCREEN
The stock market has three possible directions:
Buy, Sell or Sideways.
Market Trend = Buy
This is the signal to buy stocks. The Wizard will only issue a signal to buy stocks if the Market Trend = Buy
Market Trend = Sell
This is the signal to sell stocks short.
If you do not want to sell short, you can also stand aside and wait for the Wizard to issue a Buy signal.
Market Trend = Sideways
This means that the stock market is moving neither up nor down. When this happens, your action will be to simply hold any open investments and then wait for a Buy or Sell signal before making any new investments.
Step 2: CHECK FOR BUY OR SHORT SELLING SIGNALS
With The Wizard, finding Buy or Short-Selling signals for stocks is a snap! Select one of The Wizard’s stock investing tools. The Wizard gives you multiple ways and tools to invest in stocks.
Our simplest tools for stocks
You select a few simple options, while The Wizard uses sophisticated criteria to comb through thousands of stocks to find only the very best ones for you.
Your Time Horizon
The Wizard gives you options for choosing your Time Horizon.
Intraday Trading Signals
If you prefer to invest for the shorter-terms choose one of these options. Each investment for Intraday Time Horizons typically lasts between a few hours and a few days. Choosing this option means that you’ll be checking The Wizard at the end of every time period, you have selected for Buy or Sell Signals.
Swing Trading Trading Signals
If you prefer to invest for the shorter-terms, choose one of these options. Each investment for Swing Trading Time Horizons typically lasts between a few days to a to a week or two. Choosing this option means that you’ll be checking The Wizard at the end of every time period, you have selected for Buy or Sell Signals.
Daily Trading Signals
If you prefer to invest in longer swing trades choose one the Daily Option. Each investment for Daily Swing Trading Time Horizons typically lasts between a few days to a to a weeks and sometimes months. Choosing this option means that you’ll be checking The Wizard at the end of day for Buy or Sell Signals.
Weekly Trading Signals
if you prefer to invest for the longer-term, choose this option.
Choosing this option means you’ll be checking The Wizard once a week – at the end of every week or on the weekend – for Buy or Sell Signals. Each investment for this Time Horizon typically lasts from a few months to well over a year.
Step 3:
To run a scan you need to select an option from the following:
- Select a Timeframe
- Select Scan Type
- Select an Index
- Select the desired trends
- Optional Filters: Price Range, Current Volume, Average Volume and Volume Percent.