Investing with the Trend - The Wizard with the Trend.pdf · stocks are going down. INVESTING WITH THE TREND ... (Selling short is a method of investing that proﬁts when stocks go

UniversityWizardThe

INVESTING WITH THE TRENDWITH MARKET TREND

INVESTING WITH THE TRENDWITH MARKET TRENDUniversityWizardThe

The Trend is Your FriendThe Wizard is based on a very simple but time-tested philosophy: The best way to invest is to follow the direction - or Trend - 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.

The Wizard issues signals to buy stocks.

The Wizard issues signals to sell stocks short.

Before we show how The Wizard puts this philosophy into action, let’s first take a closer look at what a Trend is. Once you learn what a Trend is, it will be easy to see why it’s so important to always invest with the Trend.

A Trend is a DirectionYes, it’s that simple. A Trend is nothing more than the direction.

There are 3 types of Trends:

UP: The market is moving in an upward direction.

DOWN: The market is moving in a downward direction.

SIDEWAYS: The market is moving in a general sideways direction.

In fact, everything in the market has a Trend, whether it’s an individual stock, an ETF or even the stock market itself. The reason is simple: A stock, an ETF, and the stock market as a whole, can all move up, they can each move down, and they can each move sideways.


Why The Wizard Invests with the TrendInvesting with the Trend is like swimming in a river. You will always have the most success when you swim in the same direction as the current. Investing is no different; you always increase your chances of success when you invest in the same direction as the Trend.

Let’s break it down even more:

When the market is going up...

Most of the stocks in the market are also going up.

When the market is going down...

Most of the stocks in the market are also going down.

When the market is moving sideways...

Some stocks are going up and some stocks are going down.


The Wizard buys when the Market is going up.Here’s how The Wizard increases your chances of success in an up market:

1. When the market is going up, most of the stocks in it are also going up...

2. This means that our best chance of making money is to buy stocks...

3. So The Wizard issues only Buy Signals...

4. But not just any Buy Signals. The Wizard uses a sophisticated series of scans to find the strongest stocks - the ones with the best chance of going up the most. (To learn more about how The Wizard finds its Buy Signals, please see our tutorial, Simple Scan for Stocks: Finding Buy and Sell Signals.

When the market is going up... The Wizard only issues Buy Signals


The Wizard sells short when the Market is going down.Here’s how The Wizard increases your chances of success in a down market:

1. When the market is going down, most of the stocks in it are also going down...

2. This means that our best chance of making money is not to buy stocks, but rather to sell them short. (Selling short is a method of investing that profits when stocks go down. To learn more about selling short, please see our tutorial, Selling Short.

3. So The Wizard issues only Sell Signals...

4. But not just any Sell Signals. The Wizard uses a sophisticated series of scans to find the weakest stocks - the ones with the best chance of going down the most. (To learn more about how The Wizard finds its Sell Signals, please see our tutorial, Simple Scan for Stocks: Finding Buy and Sell Signals.

When the market is going down... The Wizard only issues Sell Signals


When the Market is moving Sideways, The Wizard stands aside and waits for a Buy or Sell Signal.Here’s how The Wizard increases your chances of success in a Sideways market:

1. When the market is moving sideways, there is no clear direction. Some stocks are moving up and some are moving down...

2. This means that we don’t have the advantage on our side...

3. The Wizard only wants to invest when we have a clear advantage, because this is what significantly increases our chances of making money.

4. In this instance, we simply want to stand aside and wait until the market’s direction changes to either up or down. Once this happens, we will again have an advantage and it will be time to take action.

When the market is moving Sideways...

The Wizard does not issue Buy or Sell Signals


Why Buy-and-Hold hast lost so much money...The investment strategy known as Buy-and-Hold is quite different from The Wizard. This strategy does exactly what it implies: It advises you to buy stocks and hold onto them - no matter what. Even if the market is going down, Buy-and-Hold still advises you to hold your stocks.

But as we’ve seen, when the market is going down, most stocks go down with it. Because of this, your chances of investing in a stock during a down market are small. But your chances of losing money while buying and holding in a down market are very good.

This is precisely why The Wizard only invests with the Trend of the market.

When the market is going down... Buy-and-Hold STILL holds onto stocks


The Wizard tells you what the Trend is.The Wizard’s philosophy is simple. Following it is even simpler. That’s because The Wizard always tells you what the Trend of the stock market is.

On the top right of every page of our site is the Market Trend box. This box tells you exactly what the Market Trend is. All you have to do is look here whenever you’re on the site to see what the Trend is.

THE MARKET TREND BOX IS ALWAYS AT THE TOP RIGHT OF EVERY SCREEN


Market Trend = BuyThis is the signal to buy stocks. The Wizard will only issue a signal to buy stocks if the Market Trend = Buy.

When The Market Trend = BuyNot only does The Wizard show you what the Trend of the market is, but it also tells you what action to take, whether it’s to look for Buy Signals, look for Signals to Sell Short or to simply stand aside and wait.

When the Market Trend = Buy, The Wizard will only allow you to scan for Buy Signals.


When The Market Trend = Sell

When the Market Trend = Buy, The Wizard will only allow you to scan for Buy Signals.

Market Trend = SellThis 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.


When the Market Trend = SidewaysWhen The Wizard’s Market Trend is Sideways, this means that the stock market has no clear direction - either up or down. Because this scenario does not give us a clear investment advantage, The Wizard will not issue Buy or Sell Signals. If you have any Open Positions, you have two options:

1. Hold your Open Positions: Maintain any open investments you may have, but continue to manage these positions, taking profits at The Wizard’s Profit Targets and exiting at The Wizard’s Stop Price.

2. Exit all Open Positions: The Sideways Market Trend is a signal to be cautious. Therefore, you can also exit any open positions at this time.

Either option is a good one; just choose the one that’s right for you.


Sideways (Dark Red)This signal means that the stock market had been a Sell, but has now moved Sideways.

Sideways (Dark Green)This signal means that the stock market had been a Buy, but has now moved Sideways.

There are 2 Types of Sideways Trends:

When the Market Trend = SidewaysWhen the Market Trend = Sideways, The Wizard will not allow you to scan for either Buy or Sell Signals. Instead, you must wait for the Market Trend to change to Buy or Sell before you can look for new stock investments. It’s our way of giving you the very best chance of investing with the Trend of the market and making sure you don’t buy or sell unless you have a clear advantage.


THE WIZARD SHOWS THE TREND FOR EACH STOCK.

The Wizard shows you the Trend History for Everything.The Wizard shows you more than the Trend for the stock market. It also shows you the Trend for each stock and ETF in our system, as well as for all Sectors and Industries.


THE WIZARD SHOWS THE TREND FOR EACH ETF.

The Wizard shows you the Trend for Everything.


THE WIZARD SHOWS THE TREND FOR EACH SECTOR.

The Wizard shows you the Trend for Everything.


The Wizard shows you the Trend History Everything.We want you to trust The Wizard, so we’ve done what seemingly nobody else is willing to do these days: we show you how we’ve done in the past. Not only can you see the Trend for the market, as well for every stock, ETF, Sector and Industry in our system, but you can also see a full history - some going back more than 10 years - of their Trends. Simply click on any Trend arrow you see, anywhere , on any screen, and we’ll show daily calendars of how The Wizard has called its Trend.

CLICK THE TREND ARROW OF ANY STOCK OR ETF TO SEE A FULL HISTORY OF ITS TREND

CLICK THE TREND ARROW OF ANY SECTOR OR INDUSTRY TO SEE A FULL HISTORY OF ITS TREND

CLICK THE MARKET TREND ARROW TO SEE A FULL HISTORY OF THE MARKET’S TREND


The Wizard’s Trend CalendarsWhen you click on any Trend arrow, The Wizard will show a calendar, detailing the history of that Trend. In this example, you can clearly see that The Wizard called the stock market as a Sell in early June of 2008 - 4 months before it crashed in October!


What’s Next?Now you’re ready to learn how to find Buy and Sell Signals with The Wizard.

If you’ll be investing in Stocks:

View the tutorial: Simple Scan for Stocks: Finding Buy and Sell Signals.

If you’ll be investing in ETF’s:

View the tutorial: Simple Scan for ETF’s: Finding Buy and Sell Signals.


Documents

Investing with the Trend - The Wizard with the Trend.pdf · stocks are going down. INVESTING WITH THE TREND ... (Selling short is a method of investing that proﬁts when stocks go