1. From Discovery to Decision
Previous lessons taught the individual parts of Sage Trading Suite. This practical case study shows how those parts can work together. Meet Jordan, a fictional investor who conducts a regular weekend review and is interested in fundamentally sound companies that may be trading at interesting prices. Jordan is willing to wait and does not believe every research session must produce a trade.
- 1
Discovery
- 2
Research
- 3
Evaluation
- 4
Monitoring
- 5
Strategy
Fictional educational example — not a real security or investment recommendation.
2. Step 1: Stock Sage Discovery
Suppose NMSX appears in Stock Sage's weekly results after passing the established qualification process and appearing through its 52-week-low research process. That earns further research—not an automatic purchase.
EPS History
- • Year 1: Positive
- • Year 2: Positive
- • Year 3: Positive
- • Year 4: Negative
- • Year 5: Positive
Positive EPS in 4 of the previous 5 years.
Balance Sheet
- • Year 1: Total Assets > Total Liabilities
- • Year 2: Total Assets > Total Liabilities
- • Year 3: Total Assets > Total Liabilities
- • Year 4: Total Assets > Total Liabilities
- • Year 5: Total Assets > Total Liabilities
Assets exceeded liabilities in every year examined.
It means NMSX passed Stock Sage's established qualification process and reached a price area that may deserve further investigation.
Discovery earns a company research—not a purchase.
Fictional educational example — not a real security or investment recommendation.
3. Step 2: Research the Company
Current Price
$48.00
52-Week High
$78.00
52-Week Low
$46.00
Five-year fictional EPS pattern
Year 1
$2.10
Year 2
$2.35
Year 3
$2.58
Year 4
-$0.20
Year 5
$2.82
Current fictional EPS: $2.82. These are illustrative fictional figures only.
Earnings
Four of five years were profitable, but Jordan investigates the negative year: Why did it occur, was it temporary or unusual, and could it happen again?
Balance Sheet
Assets exceeded liabilities in all five years. That satisfies Stock Sage's balance-sheet qualification rule but does not eliminate financial risk.
Valuation
Suppose current valuation appears closer to the favorable portion of NMSX's own historical range. Jordan treats that as additional evidence—not proof the stock is cheap.
Profitability
Suppose available profitability information remains positive. It is reviewed alongside, not instead of, the other evidence.
Price History
NMSX is much closer to its 52-week low than its high. This creates price context; it does not predict the next move.
Analyst Estimate
Suppose an estimate is available. Estimates are opinions and forecasts that can be wrong, so Jordan treats it as one input—not a guaranteed future value.
4. The first decision point
Has Jordan Learned Enough to Buy NMSX?
No.
Jordan has learned enough to decide whether NMSX deserves continued research.
Remove from Research
If important information no longer fits Jordan's criteria.
Continue Researching
If the evidence remains interesting but more work is needed.
Add to Personal Watchlist
If Jordan wants to monitor the company over time.
Jordan chooses: Add to Personal Watchlist.
This is a monitoring decision—not a purchase decision.
5. Step 3: Use the Watchlist
Jordan adds fictional NMSX to the Personal Watchlist and can continue reviewing it without feeling pressured to act immediately.
Personal Watchlist
Customer-managed.
Stock Sage Watchlist
Company/admin-managed and available for customers to view and use, but not modify.
The research dropdowns Stock Repurchase, Current Assets > Current Liabilities, and Profit Margin provide additional ways to review fundamentally sound stocks. When applicable, Watchlist Review can flag stocks within 20% of the analyst 52-week estimate for deletion review. This is not a sell instruction or automatic deletion; it asks whether the stock still belongs on the research list at its current price.
Fictional educational example — not a real security or investment recommendation.
6. Step 4: Examine the Chart
Timeframes
Daily · Weekly · Monthly
Moving Averages
SMA 20 · SMA 50 · SMA 100 · SMA 200
Indicators
RSI (14) · Stochastic (14,3)
Daily: Short-term price behavior has begun stabilizing.
Weekly: The stock remains below part of its longer-term historical price range.
Monthly: The broader decline remains visible.
Moving averages: Some shorter-term improvement is appearing while longer-term evidence remains mixed.
Momentum indicators: Momentum has improved from weaker levels but is not treated as an automatic buy signal.
Fictional demonstration values — not actual Power Moves output.
7. Step 5: Power Moves
Official Score
72
Rating
Fictional example rating only
Confidence
High
Coverage
91%
Jordan reviews available evidence that may include the factors below. No formula, weight, threshold, or component calculation is implied by this fictional demonstration.
Suppose several factors support NMSX while others are neutral or unavailable. Jordan learns that some current supporting evidence is present—not that NMSX is guaranteed to rise. Coverage indicates how much usable factor data was available; missing data is not automatically negative evidence.
Power Moves measures current supporting evidence. It is not a valuation model or a buy/sell instruction.
8. Put the Evidence Together
Fictional educational example — not a real security or investment recommendation.
NMSX Fictional Research Summary
- Stock Sage
- Passed established fundamental qualification.
- Price
- Near the lower portion of its 52-week range.
- Company Research
- Several characteristics deserve continued research.
- Watchlist
- Added for monitoring.
- Chart
- Some improving short-term evidence, but longer-term evidence remains mixed.
- Power Moves
- Some current supporting evidence.
What should Jordan do?
For this example, Jordan decides: “Continue researching NMSX and investigate whether an options opportunity exists.”
Fictional educational example — not a real security or investment recommendation.
9. Step 6: Options Sage
Jordan is now considering an options strategy. Only now does Options Sage become relevant to this research path.
STAGE 1
Stock First
STAGE 2
Contract Second
Preliminary strategy
Buy to Open Call
Fictional example—not an actual trade recommendation. The underlying stock passed this fictional stock-level analysis, but this is not yet a trade. Options Sage must still examine actual contracts.
Fictional educational example — not a real security or investment recommendation.
10. Step 7: Contract Analysis
Stock Price
$48.00
Potential Contract
$50 Call
Expiration
About 60 days
Result
No Trade
Suppose the fictional contract fails the applicable current contract requirements because open interest indicates inadequate liquidity and the bid/ask spread is unsuitable. Other contract data may be available, but no numerical production threshold is represented or implied.
The stock can pass research, look interesting, show improving chart evidence, have current Power Moves support, and pass a stock-level strategy analysis—while no available option contract satisfies current requirements.
11. Why “No Trade” Is a Successful Result
Research is not successful only when it produces a transaction. Jordan's process identified an opportunity, reviewed fundamentals and price context, added NMSX to a research watchlist, examined chart and Power Moves evidence, evaluated a possible strategy, assessed actual contract quality, and avoided forcing an unsuitable contract.
Final research conclusion
Continue Monitoring NMSX
Options conclusion
No Options Trade at This Time
The purpose of a research process is to improve decisions—not to manufacture trades.
12. What Happens Next?
Jordan does not need to forget NMSX. Because it remains on the Personal Watchlist, Jordan can monitor it as company fundamentals, valuation, price, chart behavior, Power Moves evidence, analyst information, or option-chain conditions change. Today's conclusion need not remain the correct conclusion forever. An attractive candidate can also become less attractive. Research is ongoing.
Fictional ETF — not a real fund or recommendation.
13. The ETF Path Is Different
Harbor Diversified Value ETF · HDVX
Suppose HDVX appears in ETF Sage's weekly research results after reaching its qualifying 52-week-low event and passing the applicable ETF quality and structure process. Jordan does not apply Stock Sage's corporate EPS qualification because an ETF is not an individual operating company.
These components can contribute to the ETF Appeal Score. Additional ETF research may include AUM, expense ratio, average volume/liquidity, asset class, dividend or distribution information when available, holdings information when available, NAV, and five completed calendar years of price history.
Fictional ETF Sage demonstration values.
Appeal Score
78
Appeal Rating
Attractive
The Appeal Score is a defined-factor research ranking—not a prediction, guarantee, command to buy, or proof the ETF cannot fall further. Jordan's valid conclusion is simply: “HDVX deserves additional ETF research.”
14. Compare the Two Research Paths
Individual Stock
- 1
Stock Sage
- 2
Company Fundamentals
- 3
Watchlist
- 4
Charts
- 5
Power Moves when useful
- 6
Options Sage when applicable
- 7
Monitor / Act / No Trade
ETF
- 1
ETF Sage
- 2
ETF-Specific Quality Research
- 3
ETF Appeal Components
- 4
ETF Price / Fund Research
- 5
Monitor / Further Research / Investor Decision
Both paths involve research, evaluation, and monitoring, but the underlying securities are different. Their research criteria are therefore not identical.
15. The most important question
What Did I Learn?
Not: “What does the software want me to buy?”
Stock Sage
“I learned this company passed the established qualification process and entered the discovery list.”
Company Research
“I learned more about the company's financial history and valuation.”
Charts
“I learned more about current and historical price behavior.”
Power Moves
“I learned how much current supporting evidence is present under its framework.”
ETF Sage
“I learned how this ETF compares under ETF-specific quality and Appeal factors.”
Options Sage
“I learned whether the stock and an actual option contract satisfy the current strategy framework.”
I make the final decision.
16. Complete Workflow Review
- 1
Discover
- 2
Research
- 3
Question
- 4
Compare
- 5
Monitor
- 6
Evaluate
- 7
Choose a Strategy if Appropriate
- 8
Review Risk
- 9
Decide
- 10
Continue Monitoring
The process is intentionally allowed to loop. An investor may return from Evaluation to Research. A security may remain in Monitoring for weeks or months. Options analysis may return No Trade. New information may cause the original thesis to be reconsidered. This is normal.
Knowledge Check
Choose an answer for each question, then check your response.