tag:blogger.com,1999:blog-48979932147319132182012-01-26T07:50:42.393-08:00This is a site about trend following. Using a stock screener, I find stocks that are in major trends, either up or down. I simultaneously buy stocks that are trending higher, and short sell stocks that are trending lower, thus buying high and selling low. ---> This method will produce winners nearly 45% of the time!Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.comBlogger291100tag:blogger.com,1999:blog-4897993214731913218.post-27967507228039992682009-01-21T18:31:00.000-08:002009-01-21T18:33:12.174-08:00

For those few who check this blog, please be advised that it has been continued at this location.

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com20tag:blogger.com,1999:blog-4897993214731913218.post-9935337153912384762008-09-21T07:51:00.000-07:002008-09-21T07:54:35.683-07:00

Scanned on 9/21 at a price of $63.36Stop Loss at $57.62 or cross of 50dma, which ever is firstTrade profitabilty: TBD

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com0tag:blogger.com,1999:blog-4897993214731913218.post-92135044967579228372008-09-18T06:13:00.000-07:002008-09-18T14:10:33.639-07:00

Scanned on 9/17 at a price of $59.60Stop Loss at $53.56 or cross of 50dma, which ever is firstTrade profitabilty: TBD

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com0tag:blogger.com,1999:blog-4897993214731913218.post-74139259538156376462008-09-18T06:10:00.000-07:002008-09-20T13:55:36.225-07:00

Scanned on 9/18 at a price of $6.69Buy stop at $7.34 or cross of 50dma, which ever is firstTrade profitabilty: Stopped out on 9/19Loss of ~9.7%

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com0tag:blogger.com,1999:blog-4897993214731913218.post-92069997629117285672008-09-14T12:18:00.001-07:002008-09-14T14:49:46.120-07:00

Scanned on 9/14 at a price of $5.35Buy stop at $6.36 or cross of 50dma, which ever is firstTrade profitabilty: TBD

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com0tag:blogger.com,1999:blog-4897993214731913218.post-60278711974412890012008-09-14T12:14:00.001-07:002008-09-20T10:15:38.768-07:00

Scanned on 9/14 at a price of $113.32Stop loss at $106.35 or cross of 50dma, which ever is firstTrade profitabilty: Stopped out on 9/17Loss of ~6.2%

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com0tag:blogger.com,1999:blog-4897993214731913218.post-42898931670671143012008-09-14T12:04:00.000-07:002008-09-14T14:52:58.911-07:00

Scanned on 9/14 at a price of $13.96Buy Stop at $15.35 or cross of 50dma, which ever is firstTrade profitabilty: TBD

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com0tag:blogger.com,1999:blog-4897993214731913218.post-26701687753755429632008-09-14T12:01:00.000-07:002008-09-14T14:53:59.202-07:00

Scanned on 9/14 at a price of $15.04Stop loss at $13.74 or cross of 50dma, which ever is firstTrade profitabilty: TBD

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com0tag:blogger.com,1999:blog-4897993214731913218.post-3679935131554688682008-09-14T11:47:00.000-07:002008-09-14T14:55:27.620-07:00

Scanned on 9/14 at a price of $5.25Buy Stop at $5.95 or cross of 50dma, which ever is firstTrade profitabilty: TBD

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com0tag:blogger.com,1999:blog-4897993214731913218.post-87577016181700157572007-12-10T05:48:00.000-08:002008-12-09T00:55:52.896-08:00

Here is an update on the performance so far:

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com0tag:blogger.com,1999:blog-4897993214731913218.post-80186493973461171342007-11-25T05:04:00.000-08:002008-12-09T00:55:54.130-08:00

For the last 2 weeks, the stocks selected for this strategy performed quite well. On the average, the shorts continued their relentless slide downwards, and the longs inched higher as well. To be more specific, here is a view of the spreadsheet this week:The gains so far represent an annualized yield of about 31%. Also, as you can see, some of the shorts have produced exceptionally enormous

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com87tag:blogger.com,1999:blog-4897993214731913218.post-28535204033687458062007-11-10T07:56:00.000-08:002008-12-09T00:55:54.348-08:00

For the past week, the stocks that have been selected produced incremental profits again. One stock in particular, SORC, which was shorted on August 3rd, has lost over 50% of its value since that time:Two posts ago I mentioned a book I was reading called, "The Way of the Turtle". I'd like to touch on another theme presented in that book in this post. The author, Curtis Faith, makes the point

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com5tag:blogger.com,1999:blog-4897993214731913218.post-68384964139774618652007-11-03T07:04:00.001-07:002008-12-09T00:55:54.649-08:00

It's been 2 weeks since the last post, so it is definitely time for an update. I'll try to post on this blog every week, but that will not always be possible.The stocks that this system has generated performed very well during this time. Here is an update on the performance:It has been 4 months since the first stock in this strategy was selected, and -although getting off to a very poor start-

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com0tag:blogger.com,1999:blog-4897993214731913218.post-30201466026491765002007-10-20T06:19:00.000-07:002008-12-09T00:55:55.019-08:00

Over the last few weeks, I have felt increasingly more confident that the method of trading stocks illustrated here is one conducive for making profits in the markets. It may need some slight tune ups here and there, like as mentioned in the previous post, but all in all, I think its a system based on a strong foundation.This foundation is based on four principles, which again are:Going with the

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com0tag:blogger.com,1999:blog-4897993214731913218.post-75036251476715916492007-10-13T07:32:00.001-07:002008-12-09T00:55:55.311-08:00

This blog has been in existence for almost four months now. In this time, I have selected many stocks that would have been very profitable. I must also admit though that many others would have lost a lot of money.I feel that in order to improve results, we should focus more closely on the stock trading techniques of market legend Jesse Livermore. Besides being made famous for his trend

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com0tag:blogger.com,1999:blog-4897993214731913218.post-31054437655915034862007-09-29T05:22:00.001-07:002008-12-09T00:55:56.270-08:00

Another week has come and gone, and in that time, most of the stocks I have selected produced incremental profits. The stock that was shorted last week, which was the stock that I said I knew nothing about, produced a profit of more than 10% in one week. Many fundamental analysts, especially the CFA type, the type that thinks they are smarter than everyone else, but could never outperform an

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com3tag:blogger.com,1999:blog-4897993214731913218.post-39842051359331321462007-09-22T05:03:00.000-07:002008-12-09T00:55:56.565-08:00

Over the last week, the stocks selected for this strategy did quite well. Slow and steady profits seem to be accruing each week. The profits are not out of this world, but, then again, this strategy is not about getting rich quick. Here is a breakdown of how we are doing so far:Here is this week's mega trending stock:This company is called Ryland Group, Inc. I have no idea where this

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com0tag:blogger.com,1999:blog-4897993214731913218.post-22681034241274967652007-09-16T07:02:00.000-07:002008-12-09T00:55:56.843-08:00

During the last week, nothing out of the ordinary happened on the markets. This means that this strategy performed as expected, which means that most stocks experienced slow but steady gains last week. This is what trending stocks tend to do.Here is this week's mega trending stock:This stock is currently right on the 50 day moving average (dma). This means that it must continue falling next

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com0tag:blogger.com,1999:blog-4897993214731913218.post-79930785342416901002007-09-08T05:07:00.000-07:002008-12-09T00:55:57.400-08:00

Another week has passed, and that means another post to this blog. Out of the 6 stocks in play, 5 produced gains last week. The one stock that did not produce gains was the stock selected last week, and, as the following table shows, it did quite poorly:Keep in mind that this blog is really just an experiment. I'll keep posting these stocks, as scientifically as possible, for at least a year

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com2tag:blogger.com,1999:blog-4897993214731913218.post-70242164086135179942007-08-31T15:37:00.000-07:002008-12-09T00:55:57.644-08:00

This week, the markets were much less volatile relative to recent weeks prior. This is beneficial to this strategy, since no stocks were blown out of the water this week. Here is an update on how we are doing so far:In comparison, the TSX has been down about 3.5%, the Dow Jones has been down about 1.5%, and the TSX Venture exchange has been down about 17% since the commencement of this

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com2tag:blogger.com,1999:blog-4897993214731913218.post-20141413491181916102007-08-25T04:54:00.000-07:002008-12-09T00:55:58.045-08:00

Here is an update on this strategy's performance to date:Here is this week's mega-trending stock that my stock scanner pulled up:Before I go, I'd like to leave you with a quote from a book I just read called, "Trading in the Zone":"Any expectation about the markets behaviour that is specific, well-defined, or rigid - instead of being neutral and open ended - is unrealistic and potentially

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com0tag:blogger.com,1999:blog-4897993214731913218.post-81701891643132306662007-08-20T06:12:00.000-07:002008-12-09T00:55:58.280-08:00

It was another unbearably volatile week for the markets last week. The TSX in Toronto was down almost 600 points intra-day on Thursday, and the Venture Exchange in Vancouver is down about 25% from recent highs. This volatility has obliterated most of my stock selections, but I will continue to monitor this strategy for at least a year before I draw any conclusions.Here is an update on the

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com0tag:blogger.com,1999:blog-4897993214731913218.post-55893606837732435522007-08-11T04:10:00.000-07:002008-12-09T00:55:58.631-08:00

So, it was another wild week for the markets. The amount of volatility in the markets was immense, and that has taken a toll on this strategy. Nonetheless, I feel that things will average out over time.Here is what my stock scanner pulled up this week. Notice how the stock finds support at the 50 day moving average. Also notice on the last day of trading, the chart formed a tall open candle

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com0tag:blogger.com,1999:blog-4897993214731913218.post-10924397103891665452007-08-04T04:56:00.001-07:002008-12-09T00:55:58.990-08:00

In this week's update I'm going to give you another mega-trending stock, but first I'm going to go over the performance of this strategy in a more scientific method. Below is an image of a spreadsheet that I have created that will be used from now on to give us a better of idea of the status of my picks.The average gain, which is 1.01%, is a simple average, and not a time-weighted average. But

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com0tag:blogger.com,1999:blog-4897993214731913218.post-39936331383066541382007-07-28T00:43:00.000-07:002008-12-09T00:55:59.368-08:00

Before we get into the next example, let's again have an update on how the previous picks are doing. I'll start off by saying that I lost quite a bit of money with the stock screener example #2 pick. However, that does not surprise me considering how much the markets tanked last week.The good news, and this is nothing short of a miracle, is that none of the stocks I have selected have

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com3tag:blogger.com,1999:blog-4897993214731913218.post-68823296046551431892007-07-21T05:46:00.000-07:002008-12-09T00:55:59.510-08:00

Before I show the next example, let's have an update on how we are doing. In the past week, Example #3 is basically unchanged, but the important thing is that it has not broken its 50 day moving average. I actually bought a few shares of this company, and I'm going to keep on holding it until the 50 day moving average is broken. That could happened in a few days, or it could happen in a few

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com0tag:blogger.com,1999:blog-4897993214731913218.post-14012151177513204562007-07-15T06:12:00.000-07:002008-12-09T00:55:59.666-08:00

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

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com4tag:blogger.com,1999:blog-4897993214731913218.post-82232887068380773172007-07-06T05:52:00.000-07:002008-12-09T00:55:59.962-08:00

Here is another example of a stock that is in a powerful uptrend. Trying to pick a top in this stock would be like getting in the way of a speeding freight train. Like all my mega-trending stocks, I would recommend placing a stop just below the 50 day moving average. If the stock breaks this level of support, I would just sell it, and forget about it. A certain percentage of these picks will

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com1tag:blogger.com,1999:blog-4897993214731913218.post-81528449791267844642007-07-05T16:27:00.000-07:002008-12-09T00:56:00.224-08:00

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

Danny Merkelhttp://www.blogger.com/profile/14869884407300757971noreply@blogger.com6