Learning Hub

Never buy a Stage 4 stock

The single most important rule in Weinstein methodology: if a stock is trading below its declining 30-week moving average, it is in Stage 4. No matter how "cheap" it looks fundamentally, the technical picture says sellers are in control. Wait for Stage 1 basing, then a Stage 2 breakout.

RS new highs predict price new highs

When a stock's relative strength vs SPY makes a new 52-week high before the stock's price does, that's a leading indicator. It means money is flowing into this stock faster than the broad market. Our platform alerts you when this happens.

Use DCF as a range, not a target

A DCF model produces one number, but that number depends on assumptions about growth, margins, and discount rate. Always run base, bull, and bear scenarios. If the current price is below even the bear case, you have a real margin of safety.

Position sizing matters more than entry

The difference between a 2% and 5% position in a stock that drops 30% is the difference between a manageable loss and a portfolio-damaging one. Use the scale-in approach: split your target position across 3 entry zones (40/35/25) instead of going all-in at one price.

Separate your swing and long-term holdings

A stock that's a great swing trade (Stage 2 breakout, 3-30 day hold) may be a poor long-term investment (overvalued on DCF). And vice versa. Mixing timeframes in one portfolio leads to confusion and poor decisions. Use separate portfolios with different scoring weights.