Stocks in Stage 2 uptrends

Investing Strategies Mechanical Investing
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Trading based on finding stocks in Stage 2 uptrends can be mechanical as long as we define our Sell rules, stop loss rules and buy criteria. For buying criteria, I’m going to insist that the price is above the 50dma, which in turn is above an upward sloping 200dma. For sell criteria, I’ll say that we sell if we hit a 10% stop loss below the purchase price or if the price goes below the 50dma.

As an experiment, I’ll run a simulation buying the following stocks during the day tomorrow (Thursday 9/5).:

FOUR, ASPN, ONON, NU, MELI, MO and ZETA.

I’ll track the simulation and report the results here periodically.

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could you provide a link for the definition of “stage 2 uptrend”

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I also recommend you read this book by Mark Minervini:

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@rdutt @buynholdisdead , Ron, thanks for doing this. This is interesting, something I am trying to learn for 2025. I understand your sell concept. For your buying criteria - " For buying criteria, I’m going to insist that the price is above the 50dma, which in turn is above an upward sloping 200dma." - Iam guessing there will be numerous stocks that satisfy this criteria, so how do you then hone in and choose these 7 stocks. Or even more recently, the latest you added such as WGS or FTAI? Can you please explain what made you choose those from the rest that may have satisfied this criteria. Thanks again!
Charlie

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