An Introduction to the Stock Scanner

After realizing how much sense it made to just ride the trend rather than picking tops and bottoms, I immediately set out to find a way to find stocks that were in powerful, unstoppable trends. This was much harder than I had imagined. Most people know what a trend is, but to define a trend in mathematical terms was quite difficult. This site is supposed to be about simplicity, so I won't go into discussion about how the scan works. However, I will post a screenshot of the scanner for those who are curious.



Anyway, you need not worry about how complicated the scanner is, even though it's simpler than it appears, since I will be posting its results as they are generated, and once the results are posted, it is very simple to understand what is going on.

So, I ran this scan through, and I came up with some results which I will now post. The chart below is the stock of a company I know nothing about, but I do know that if I invest in its stock, there will be an extremely high probability of success.



As you can see in the above chart, this stock starts in the bottom left hand corner, and is now at the top right hand corner. This a sure sign of an uptrend. The reason why investing in this stock would likely bring about profits is because the odds of this massive trend turning around the moment you put your money on the table are very small .

The natural inclination is to think that this stock has already had its run, and it's due for a correction. I mean, it's been going up for almost a year, surly it's is due for a breather. Although this is entirely possible, this mentality is the top picking mentality, and the top picking mentality is not a profitable one.

Because it is, in theory, possible for this stock to start to decline the moment you buy it, we need an exit plan. I think the best course of action would be to place a stop right under the 50 day moving average, which is the dotted line in the chart. This means that as the stock continues to rise, you will have to adjust your stop order every couple of days, since the 50dma will also rise. This will have the effect of locking in profits.

Anyway, I will keep posting these stocks, and hopefully you will see that it pays to trade with the trend.