To determine gains on IncaTrades.com, the entry is assumed to be the stock's next price following the posting. If the stock moves in the expected direction, the gain is simply the difference between the best price in the expected direction and the entry price. The gain percentage is the gain divided by the entry price. Website daily gain is the most recent 60 trade SMA in the Boneyard. Since calendar days are reported, the theoretical annual percentage is the daily gain x 365 days. Positive gains are represented by gold bars to the right.

Occasionally we misjudge and the stock moves in the opposite direction from our prediction. For posting purposes we assume a loss percentage of 1%, which is represented by red bars to the left.

New stocks that appear on the list have yet to produce a gain. Typically gains begin within a day or two of posting. Incas may begin trading the new stocks on the posting day. We all have different time frames and criteria for exiting the trades, sometimes exiting when a certain percentage is reached or when we believe the short-term move is over. Incas use their own analyses to optimize their exits.

Short stock gains tend to be higher when the market falls, while Long stock gains tend to be higher when the market rises. Trading only in the direction of the general market (i.e., Longs in a rising market and Shorts in a falling market) will produce gains higher than those posted on our website. However, for website posting purposes we average the posted 1% loses along with the gains.

What are we watching for? In a word, TURNS! When a stock has moved in one direction (buying outweighs selling, for example, causing an advance in price), there often comes a time when sellers begin fiercly asserting themselves. Former buyers become sellers and others may sell short. However, other buyers may be convinced that the uptrend will continue and therefore continue buying. During this period of tug-o-war the stock will neither advance nor decline. However, the volume may be many orders of magnitude above the norm. The key question becomes 'Who will win this struggle?' Searching among all stocks for trading candidates that meet these criteria, we find (and post) them either as long or short assuming they are about to change direction. Since we discover them using our filters after the market closes and want to be ready to go on the next day's opening, we also post them on our website. If we've posted them as short, but they immediately begin a strong up move on the opening, we won't short them until they lose steam, or we might even go long if the buyers appear strong enough. The important thing is that these stocks have experienced a vehement struggle involving both buyers and sellers and we want to be on the winning side. Read more about this in Humphrey Neill's excellent text in our library.