Page 1018 - How to Make Money in Stocks Trilogy

Start Here 11

Step 3: Take Most Profits at 20% to 25%.
Cut All Losses at No More Than 7% to 8%.
Start with this simple selling plan to make sure you lock in some good gains
and avoid any serious damage.

Potash Corp – 2011 Take 20% gain at 61.44 Price
Weekly Chart
Buy point: 51.20 60
50
46
42
Gains disappear for
people who held 38
Flat base
34
30
28
26
24
22
Volume
120,000,000
70,000,000 © 2013 Investor’s Business Daily, Inc.
40,000,000
20,000,000
Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11 Jun 11
Take most gains at 20% to 25% to lock in good profits and grow your portfolio.

Mindray Medical – 2008 Price
Daily Chart Breakout
Cut ALL Losses Short
Mindray ended up falling
71% below buy point
40

Sell Immediately
Stock drops 7% 35
Faulty cup-shaped base below buy point
© 2013 Investor’s Business Daily, Inc.
Volume
1,200,000
700,000
400,000
200,000
28 11 25 9 23 6 20 4 18 1 15 29
April May June July August
Never let a little loss become a big one: Always sell if
a stock drops 7% to 8% below your purchase price.