Page 1169 - How to Make Money in Stocks Trilogy

154 HOW TO MAKE MONEY IN STOCKS—GETTING STARTED

• How have big investors reacted to recent news about the stock? Did they
sell even though the news was good? Or did they buy more shares even
though the news was bad?

By understanding that story and looking for certain signals, you’ll know if
now is a time to buy, sell or hold.

Start with the Basics
At workshops and IBD Meetup events, I’ve worked with countless investors
looking at stock charts for the very first time. From that experience—and my
own—I’ve boiled down the basics of chart-reading into a few key concepts.
The goal here isn’t to get into advanced techniques. It’s about getting
started: By the end of this chapter, you’ll have everything you need to run
your stocks through the “Chart Analysis” items on the buying and selling
checklists.
Here’s how we’ll do that one step at a time:
• Chart-Reading 101: You’ll learn what’s in a chart and 3 ways to “see” if
institutional investors are heavily buying or selling a stock.
• 3 Telltale Patterns That Launch Big Moves and Alternative Buy
Points: You’ll see that spotting “bases” and “buy points” is really not that
hard—and can be immensely profitable.
• Using Charts to Go Through the Checklists: I’ll show you how to
start using the “Chart Analysis” items on the buying and selling checklists
to help capture—and keep—solid gains.

Stick with It
Even if it seems a little confusing at first, don’t give up. Watch the videos
and take the Action Steps. You’ll soon get the hang of it and realize that
chart-reading truly is a lifelong money-making skill.
As Bill O’Neil has said: “Fortunes are made every year by people
who learn to properly read charts.”