Success in investment means diverse things to all kinds of people. O' Neil and his group of portfolio managers accomplish success perhaps the way other people can't. Having to manage someone else's money, work as a trader for somebody else is totally dissimilar from having to manage you own, or having to invest the assets of your family.
The sole aim of this commentary is to give a precise way to learn the rules of investing and getting result from you investment.
As the Bible would have its ten commandments, here are the ten most important investment rules laid out for you.
Rule One. Market Uptrend is Investment Append. This means you have the say. Just simply reading some key sections like the "Big Picture" in IBD on a day-to-day basis shall really facilitate this.
Rule Two. You should be focusing on what to buy. This recommends that you consider only those companies having unyielding earnings growth for the precedent three years, who have intensive sales income, with current quarterly earnings high above than their peers.
Rule 3. Focus now on what time to buy. You should be able to read charts, and know how to spot buy points. It also suggests that one should purchase stocks only when they are ranging 3-5% beginning on their buy point, and never buy when the price goes beyond more than 5% o their model buy point.
Rule 4. Focus now on which one to hold. Stocks in your portfolio need to execute. This is for the reason that if one stock does well, it can be a contender for accumulation; you should be able to identify which stock to keep and which one to let go.
Rule 5. The hardest rule of all. This suggests is derived from O'Neil saying that one should vend any stock that moves down to 7-8% under the main purchase price. So knowing which kinds of stocks to handle is a big help.
Rule 6. This rule suggests that one should not acquire stocks when they are way behind. One should keep away from buying stocks with high dividends, oversimplified criteria, small price-earning ratios, and that are cheap.
Rule 7. This rule suggests that the amount you will invest on (no matter the cost) should be divided proportionately amid 5 to 7 stocks. Once you are aware of the amount you should place in every stock, calculate the amount of shares it can allow for every stock.
Rule 8. This rule shall tell you how stocks are accumulated. Do investment in stages: buy first, and if it does well, add further shares.
Rule 9. This is the opposite of the last rule. While a stock goes down, it is a high moment to sell 50% of your shares.
Rule 10. This rule recommends that you check on what you are doing on a customary basis. Assess and re-assess.
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