1. Focus on stocks with each of the last three years' earnings up 25%+, return on equity of 17%+ and recent earnings and sales accelerating.
2. Recent quarterly earnings and sales should be up 25% or more.
3. Avoid cheap stocks. Buy higher-quality stocks selling at $15 a share and higher.
4. Learn how to use charts to see sound base patterns and exact buy points.
5. Cut every loss when it's 8% below your cost. Male no exceptions so you can always avoid huge, damaging losses. Never average down in price.
6. Follow selling rules on when to sell and take profit on the way up.
7. Buy when market indexes are in an uptrend. Reduce investments and raise cash when general market indexes show five or more days of volume distribution.
8. Learn how to recognize important tops and bottoms in market indexes.
9. Pick companies with management ownership of stock.
10. Buy mostly in the top broad industry sectors, i.e. the ones stated below.
(a) Natural Gas
(b) Energy Services
(c) Energy
(d) Natural Reserves
(e) Chemicals
(f) Materials
(g) Gold
(h) Health Care/Medical Sector
(i) Transportation
(j) IT Services
11. Select stocks with increasing institutional sponsorship in recent quarters.
12. Current quarterly after-tax profit margins should be improving, near their peak and among the best in the stock's industry.
13. Don't buy because of dividends or P-E rations.
14. Pick companies with a superior new product or service.
15. Pay close attention to those with an IPO in the past 8 years.
16. Check into comapnies buying back 5% to 10% of their stock and those with new management.
17. Don't try to bottom-guess or buy on the way down. Never argue with the market. Forget your pride and ego.
18. Find out if the market currently favors big-cap or small-cap stocks.
19. Do a post-analysis of all your buys and sells. Post on charts where you bought and sold each stock. Evaluate and develop rules to correct your major past mistakes.
20. Invest in the "5-Star Buy" picks.
*Adapted from Investor's Business Daily Magazine.
2. Recent quarterly earnings and sales should be up 25% or more.
3. Avoid cheap stocks. Buy higher-quality stocks selling at $15 a share and higher.
4. Learn how to use charts to see sound base patterns and exact buy points.
5. Cut every loss when it's 8% below your cost. Male no exceptions so you can always avoid huge, damaging losses. Never average down in price.
6. Follow selling rules on when to sell and take profit on the way up.
7. Buy when market indexes are in an uptrend. Reduce investments and raise cash when general market indexes show five or more days of volume distribution.
8. Learn how to recognize important tops and bottoms in market indexes.
9. Pick companies with management ownership of stock.
10. Buy mostly in the top broad industry sectors, i.e. the ones stated below.
(a) Natural Gas
(b) Energy Services
(c) Energy
(d) Natural Reserves
(e) Chemicals
(f) Materials
(g) Gold
(h) Health Care/Medical Sector
(i) Transportation
(j) IT Services
11. Select stocks with increasing institutional sponsorship in recent quarters.
12. Current quarterly after-tax profit margins should be improving, near their peak and among the best in the stock's industry.
13. Don't buy because of dividends or P-E rations.
14. Pick companies with a superior new product or service.
15. Pay close attention to those with an IPO in the past 8 years.
16. Check into comapnies buying back 5% to 10% of their stock and those with new management.
17. Don't try to bottom-guess or buy on the way down. Never argue with the market. Forget your pride and ego.
18. Find out if the market currently favors big-cap or small-cap stocks.
19. Do a post-analysis of all your buys and sells. Post on charts where you bought and sold each stock. Evaluate and develop rules to correct your major past mistakes.
20. Invest in the "5-Star Buy" picks.
*Adapted from Investor's Business Daily Magazine.
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