Page 1064 - How to Make Money in Stocks Trilogy

50 HOW TO MAKE MONEY IN STOCKS—GETTING STARTED

Nasdaq Follow-Through – Dec. 2011 PCLN (+41%)
Daily Chart 3000
SWI (+44%)
AAPL (+33%)
TDG (+33%) RAX (+33%)
NUS (+22%)
V (+22%) 2800
INVN (+87%)
COH
BWLD (+44%) (+22%)
EC (+65%) ISRG (+32%) KORS
(+84%)
TSCO (+34%)
© 2013 Investor’s Business Daily, Inc.
CLR (+33%)
ALXN (+48%)
12/20/11 Follow-through
Volume (00)
14,000,000
8,000,000
4,000,000
2,000,000
11 25 9 23 6 20 3 17 2 16
November December January February March
AAPL: Apple KORS: Michael Kors
ALXN: Alexion Pharmaceuticals NUS: NuSkin
BWLD: Buffalo Wild Wings PCLN: Priceline
CLR: Continental Resources RAX: Rackspace Hosting
COH: Coach SWI: SolarWinds
EC: Ecopetrol TDG: Transdigm Group
ISRG: Intuitive Surgical TSCO: Tractor Supply
INVN: Invensense V: Visa
See how all the market cycle pieces fit together?
• Make money in an uptrend—and protect your profits as a downtrend
begins.
• Focus on “new growth”—not past leaders.
• Keep doing your routine and building your watch list during the down-
trend.
• If you don’t stay engaged while the market is down, you’ll likely miss the
next crop of big winners that shoot higher right when a new uptrend
begins.
I hope this makes clear why you definitely need to understand how mar-
ket cycles work—and how easy it is to stay in sync with those trends. Just
check the Market Pulse and read The Big Picture regularly.
And as you’ll see when we get into the Simple Weekend Routine, you can
also spot the next group of potential winners by regularly checking the IBD
50, Your Weekly Review, and other lists that highlight today’s CAN SLIM
stocks.