5-08 Resources

Summary You’ve made your first purchases and now you have some idea what to do with them. While you’re not yet an expert, you should now have enough information to create a basic holding strategy and an exit plan. You understand that you should ride your winners and dump your losers. Having a sensible exit Read More…

               

5-07 Keep to Your Exit Strategies

Exit Strategies Are Designed to Protect Your Value Rule #7 – Have an Exit Plan and Target for Every Stock Few experienced traders ever invest in any stock without having an exit strategy. In its simplest form, an exit strategy is a plan to get you out of something you’re in. In the investment universe, Read More…

               

5-06 Watch the Volume!

Identify Market Tops to Maximize Profits Market tops are subjective opinions that often quickly become fact, for better or worse. How can you possibly identify a market top? Here are some suggestions that many experts believe will help you identify market tops. Closely watch the Dow Jones Industrial Average, NASDAQ Composite, and S&P 500. Pay Read More…

               

Rule #5 – Know When to Hold’em, Know When to Fold’em Avoid falling in love with any one particular stock as the market can turn on it very quickly. While you may love a particular stock, millions of others may develop a dislike on a moment’s notice. You must be prepared to cut ties with Read More…

               

5-04 Diversify, Diversify and Diversify

Rule #4 – Diversify, diversify, and diversify Reminder: Always diversify your portfolio into at least 10 different stocks. It doesn’t matter if you are starting with $10,000 or $100,000–you’ll have more success if you think big and proceed as though you were a major-league investor. Diversification is important because while one sector of the economy Read More…

               

5-03 Never lose more than 10%

Rule #3 – Never, ever, ever lose more than 10% on any single trade. Traders, finance professors, and common sense all say that you should never let one sour apple ruin all of the other apples in your basket! Picking 9 stocks that gain 10% will be a waste of time if your 10th stock Read More…

               

5-02 Don’t Fall in Love With Your Stocks

Rule #2 – Don’t fall in love with your stock purchases – winners OR losers (particularly losers). Remember, you are not a welfare agency, rehab specialist, or air/sea rescue professional. If an investment is going south, sell it – without remorse and move on. Don’t forget, investing is a business, not a hobby or a Read More…

               

5-01 Ride Your Winners

Selling a stock is just as important of an investment decision as buying and you must have a strategy to maximize your profits and minimize your losses. Developing a trading strategy is important to your future investing activities. Even a flawed strategy is better than having no strategy. And trust me, your strategy will always Read More…