Never buy stocks aspx
ysygohajavin.web.fc2.com - Top Financial Newsletter
If all our rules are carefully followed not just the ones you like , your investment results should materially improve: Buying a stock is only half of the equation. Knowing when to sell is just as important.
The first part of this course discusses why it's critical to cut your losses early. The second and third lessons teach you how to spot the best time to sell and take your profits, including ways to use stock charts to detect a weakening stock. Never buy or sell stocks on Tips or Rumours, no exception. Make no exceptions so you can always avoid huge, damaging losses.
Never average down in price. Follow selling rules on when to sell and take profit on the way up. Buy when market indexes are in an uptrend. Three out of every four stocks follow the market, either up or down.
Reduce investments and raise cash when general market indexes show five or more days of volume distribution. Buy leading stocks in the leading industry groups. Pick companies with management ownership of stock. Buy stocks breaking out in heavy volume from chart patterns like cup with a handle, flat base, double bottom, etc. Select stocks with increasing institutional sponsorship in recent quarters.
Current quarterly after-tax profit margins should be improving, near their peak and among the best in the stock's industry.
Pick companies with a superior new product or service. Invest mainly in entrepreneurial companies. Pay close attention to those with an IPO in the past 8 years. Never argue with the market. Forget your pride and ego.
Dont back your judgements until the action of the market itself confirms your opinion. Dont let emotions take over, thats one of the biggest dangers of Investing. Find out if the market currently favors big-cap or small-cap stocks.
Do a post-analysis of all your buys and sells.
2 Stocks I'd Never Buy, and 1 I'll Consider -- The Motley Fool
Post on charts where you bought and sold each stock. Evaluate and develop rules to correct your major past mistakes. Rules For Stock Market Success.