Stan Weinstein – Who he is and his Investment philosophy

Stan Weinstein is an American technical analyst, author and contributing editor to the MarketWatch website. He is currently an editor at Global Trend Alert, a financial advisory for institutional investors.

He is a frequent guest on financial news programs and has been quoted in The Wall Street Journal, Barron's, Investor's Business Daily, USA Today and other media outlets.

stan Weinstein biography

Furthermore, he is known for his work on the theory of market cyclical movements, which he originally developed in the early 1970s. This theory forms the basis of his book Secrets for Profiting in Bull and Bear Markets, which has been translated into six languages, including English, Spanish, etc. as “Secrets of making money in bull and bear markets.”

His investment philosophy is based on technical analysis, trading long-term trends, identifying predictive figures in market trends and asset movement.

Who is Stan Weinstein?

Stan Weinstein is a financial expert,
he founded Global Trend Alert, located in Florida. The company is dedicated to financially advising of institutional investors.

Stan Weinstein is a regular contributor to media outlets on CNN and CNBC. Stan Weinstein bases his recommendations on four market cycles/stages, trading on future trends instead of operating based on current news.

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Stan Weinstein's investment philosophy

By analyzing the price charts, changes in price movements can be detected. According to Weinstein, the key is to look for recurring patterns and trends. One of the techniques is to go long in bullish trends by buying assets and go short (short selling) in bearish trends.

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Some of Weinstein's commandments

  • Do not trade without first seeing the chart
  • Do not buy stocks after a significant rise before good news has come out
  • Never buy a stock in a downward trend
  • Be disciplined with a strategy
  • Do not buy stocks that trade below the 30-week average, especially when it is decreasing.
  • Do not sell stocks that trade above the 30-week average, especially when it is increasing
  • The flatter the trend line, the greater the implications when the signal price
  • Buy when the news is bad and sell when it is good
  • An increase in volume accompanying price rises will push the price up
  • There are 4 stage: Consolidation, advancement, plateauing and decline

To buy stocks

  • Favorable technical aspect of the sector
  • Choose values in favorable sectors and that have a bullish figure.
  • Discard companies close to a resistance
  • Check the relative strength

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To not buy stocks

  • When the trend is bearish
  • When a company is in a negative sector
  • When it trades below the 30-week average
  • When a value shows little relative strength and little volume in a breakout
  • To not sell
  • When its price-earnings ratio is high
  • Do not wait for the next recovery to sell
  • The sell stop should not be set at a percentage
  • Raise the stop as the 30-week average does
  • When a trend line is lost, at least part of the position should be sold.
  • Note down the operations with losses so that they are not forgotten, profits teach nothing

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Stan Weinstein stage analysis

Stan Weinstein's stage analysis is a method for evaluating stock market cycles. It divides the market cycle into four stages:

  • Stage 1 is the basing period
  • Stage 2 is the uptrend phase
  • Stage 3 is the topping phase
  • Stage 4 is the downtrend phase
Stan Weinstein stage analysis explanation
Source: The Globe and Mail

This framework helps investors identify when to buy or sell a stock based on its current stage. Weinstein, besides, suggests using technical analysis tools, like moving averages and volume, to identify these stages and make informed trading decisions. His approach emphasizes the importance of timing in buying and selling, advocating for entering stocks during Stage 2 and exiting before Stage 4 becomes pronounced.

FAQs about Stan Weinstein

What is the Stan Weinstein indicator?

This indicator is a trend indicator for trading charts based on Stan Weinstein method. It uses various technical methods to identify four trend phases on an asset: consolidation, advancement, plateauing, and decline.

Who is Stan Weinstein?

Stan Weinstein is an American technical analyst, author and contributing editor to the MarketWatch website. He is currently an editor at Global Trend Alert, a financial advisory for institutional investors.

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