Investor’s Business Daily Is The Greatest Investment Website On The Internet
May 30, 2008
Everyone should go to the IBD Learning Center and READ EVERYTHING in it this weekend. That way IN CASE this turns into a VERY BULLISH (a big up day over 1.5% with volume over the 50 day volume average by at least 20%) you will be completely ready.
f all of IBD’s 20 rules are carefully followed (not just the ones you like), your investment results should materially improve:
1. Consider buying 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 $15 a share and higher.
4. Learn how to use charts to see sound bases and exact buy points.
5. Cut every loss when it’s 8% below your cost. Make 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. Read IBD’s Investor’s Corner and Big Picture columns to learn how to recognize important tops and bottoms in market indexes.
9. Buy stocks with a Composite Rating of 90 or more and a Relative Price Strength Rating of 85 or higher in the IBD SmartSelect® Corporate Ratings.
10. Pick companies with management ownership of stock.
11. Buy mostly in the top six broad industry sectors in IBD’s New High List.
12. Select stocks with increasing institutional sponsorship in recent quarters.
13. Current quarterly after-tax profit margins should be improving, near their peak and among the best in the stock’s industry
14. Don’t buy because of dividends or P-E ratios.
15. Pick companies with a superior new product or service.
16. Invest mainly in entrepreneurial New America companies. Pay close attention to those with an IPO in the past 8 years.
17. Check into companies buying back 5% to 10% of their stock and those with new management.
18. Don’t try to bottom guess or buy on the way down. Never argue with the market. Forget your pride and ego.
19. Find out if the market currently favors big-cap or small-cap stocks.
20. 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.
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Comments
5 Comments »
It seems like a lot BUT I SWEAR to you that if you seriously just take 1 hour a day..even thought it might take three years…still you could RADICALLY change your life forever.
I am VERY WORRIED about higher taxes and what my future with Medicare and Social Security is going to be like since they will not let me invest MY OWN money. So I assume some of you are also.
I know it seems like a lot BUT SERIOUSLY if you just keep at it one day it will click and if you go to http://www.bigwavetrading.com/category/investment-longs/past-big-winners-longs/ on my website you can see THIS REALLY DOES WORK ALL THE TIME…even back in 1890!!
I am worried about my future and I think you should be too. It is best to be prepared and to take care of yourself in case the government can not and will not take care of you.
I am a big fan of IBD and CANSLIM but with yesterday’s trading, any day that gives up half its gains the last couple of hours is a bearish day.
Double top in the market with a current shakeout of shorts?
Double Top??? Come on now, those takes months to form…not too mention they are highly unreliable.
Not agreeing with your bearish feelings about the market yesterday. The NASDAQ ended with solid gains on volume…yes the downside we didn’t close on its highs but we didn’t roll over and close on the lows.
Joshua,
Love the blog.
Which IBD package do you subscribe? eIBD or the top 100 stocks.
I believe is the Daily Graphs Joshua subscribes to. I have eTables and hope to have the full research package from IBD by EOY.
Josh gets the eIBD and I get the paper edition.