Stock Scanner Example 3

So, it's been about a week since I last made a post on this page. The last 2 stocks I posted are up an average of 2.44% for the week. Following the rules of this strategy, you would be moving up your stop loss order as the stock rises, which means, at this point, these 2 trades will almost certainly come out to be winners.

I had to go through about 20 stocks before I found this next one. Not all stocks the scanner brings up are good ones. The scanner is really only the first layer of the filtration process. I take the results and narrow them down until I only have the best ones.


What I like about this stock is that, of course, the overall trend is up, and that the stock has clearly bounced off its 50 day moving average many times. Presently, the stock is trading near its 50 day moving average, which should act as support.

Also, on the close on Friday, the stock made a tall white candle on higher than average volume. This is another bullish development, and was one of the reasons why this stock got posted, and not some other stock the scan picked out.

Remember, my rule is to get rid of the stock if it decisively breaks the 50 day moving average. This means that the potential loss here is quite small. Warren Buffett's first rule of investing is to not lose money. This is why I'd place a stop below the 50 day moving average. Anyway, I hope this makes sense. Best of luck.