Page 1065 - How to Make Money in Stocks Trilogy

Buying Checklist 51

The Trend Is Your Friend

It’s an old cliché, but it’s stuck around all these years for a reason: It’s true!
You will build a solid foundation for making money in stocks if you sim-
ply buy when the market is trending up, and protect yourself when it starts
trending down.
Everything flows from understanding market cycles and the current mar-
ket direction.
In a strong uptrend, the top-rated CAN SLIM stocks will give you multi-
ple opportunities to make significant profits. By following the rest of the
Buying Checklist and the Simple Weekend Routine, you can have them on
your watch list, ready to act when those opportunities arise.
Next up: Let’s see what specific traits to look for as you search for the
next big winners.

• ACTION STEPS •
Here are some quick To Dos to learn more about how market cycles
work—and see which way the market is trending right now. To take
these steps, visit www.investors.com/GettingStartedBook.
1. Read The Big Picture column in IBD or on Investors.com.
• Is the market currently in an uptrend—or correction?
• What else does it say about current market conditions
and the action of leading stocks?
2. Watch the latest Market Wrap video under the IBD TV tab
on Investors.com.