Some INVESTING TIPS ...
posted on
Feb 15, 2011 08:21PM
We may not make much money, but we sure have a lot of fun!
If a stock breaks out and makes a 20% gain within three weeks, you should hold it for at least 8 weeks.
Earnings and sales growth are two of the most important fundamental factors to consider in selecting a stock.
Don't rely on dividends to find top growth stocks. Don't marry a stock, date it.
Don't let your personal biases towards a certain sector or group prevent you from finding winning stocks in other sectors or groups.
Don't blame market manipulators for your own trading mistakes. Diversifying can cut off risk. But too much can cut off profit.
Concentrate your portfolio on just a few stocks and watch them closely to improve your overall gains. By grabbing smaller but safer gains when appropriate, you will secure your gains. By cutting losses before they get out of control, you'll secure your capital.
Build a Watch List to prepare for breakouts. Before buying stocks, compare them to a checklist that includes essential technical and fundamental characteristics
Bad news will often pop up on a stock's chart before it pops up in the headlines.
Pick a group's leaders, not a group's laggards When researching profit growth, don't forget to check stability.
Top stocks' action is a good indicator of the market's strength. Shakeout or sell-off? Volume gives clues. Saucer bases can launch powerful run-ups.
Powerful breakouts offer strong returns. Pick cash flow leaders in an industry group. Pay attention to where a stock closes.
Overconfidence in your investing skills can lead to fatal mistakes History always repeats itself in the stock market. Heavy-volume declines often signal trouble. EPS estimates can help you spot winners.
Don't hold laggards during a correction. Don't fret over pennies during the breakout.
Don't fall in love with a stock — use sell rules to guide your hand. |