Author Topic: HOW TO PICK WINNING STOCKS  (Read 591 times)

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« on: May 27, 2012, 12:38:11 AM »

by Martin Zweig

“Look for a clear uptrend on the stock’s chart.

If you see a series of HIGHER HIGHS and

HIGHER LOWS , like a stepladder on the way up,

that’s it ! Buy the stock !”

    ACTING BETTER. Look for stocks that are acting better than the other stocks, even

in a weak market.

    AVOID STOCKS that haven’t been keeping pace, left behind, stocks wallowing near

 their lows, weak stocks rising in a very lukewarm way.

    CLEAR UPTREND. Look for a clear uptrend on a chart where you see a series of

HIGHER HIGHS and HIGHER LOWS, like a stepladder on the way up.

    BEST BUY SPOTS. Your best buying spots are short pullbacks or (“corrections” or

profit-taking) of 5% to 10% from the stock’s recent peak price. Buy when the price drops a


  BREAK OUT. Look for a stock that’s just breaking out from a long “consolidation” .

(Matagal na natulog ang stock, biglang gumising !) Look for rising volume — going with the

rising stock.

    MAKING MISTAKES. Even the world’s best professional traders make mistakes in

the market losing billions of dollars. Zweig says: “ I also make a lot of mistakes in the

market and I will make more mistakes in the future”. So, don’t be afraid or embarrassed to

make mistakes.

    CUT LOSSES. Let your profits run, but cut your losses short. Don’t wait too long,

hoping the stock will recover. In most cases, it won’t. If you bought a stock at 20, you won’t

be badly hurt if you cut loss by selling out at 17 for a 15% loss.You still have the bulk of your

capital— to look for a better, stronger stocK.

    JESSE LIVERMORE, the greatest stock speculator who ever lived, said :

“ A loss never bothers me after I took it. I forget it overnight. But being wrong

and not taking the loss, that’s what damage your pocket. Of all blunders, there

are a few greater than trying to average a losing game. Always SELL what shows

you a LOSS, and KEEP what shows you a PROFIT.

    STOP LOSS. Set your “stop loss” price at 7% to 10% below your buy price. For

more volatile stocks ( malakas gumalaw!) you can give more room at 10% to 15% “cut loss”

selling price to GET OUT of the stock. Don’t wait, don’t hope, get out!

    GETTING OUT. If a stock drops right away after you bought it, your “cut loss”

selling price gets you out of the stock with only a moderate loss. You still got most of your

money left. This gives you another opportunity to find a better,stronger stock.

    SMALL LOSS. A small loss becomes a good opportunity for making profits

elsewhere. This gives you the chance to turn a liability into an asset— instead of just sitting

there hoping and praying that your dying stock will come back,with your losses becoming

bigger and bigger…

    LOCK IN PROFITS. Use the same “stop loss” to trail behind a rising stock.

Let your profits ride as the stock keeps on rising. As it keeps rising, also keep raising your

“trailing stop” price—the price where you get off when the price drops 7% to 10% . Once it

drops to your target “stop loss” price, SELL the stock and get your profits!

    BUYING MORE. If the stock price just keeps on rising steadily, with “higher

highs and higher lows” on the chart, just hang in there and ride with the profits.

If you still have more cash to spare, BUY MORE of the same stock and “average up” as much

 as you can… | Your smart guide to money matters and entrepreneurship.

« on: May 27, 2012, 12:38:11 AM »

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