Page 119 - How to Make Money in Stocks Trilogy

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A WINNING SYSTEM
Volume
140,000
80,000
40,000
Price
3.8
4.5
3.2
2.4
2.8
26
22
34
30
19
12
10
16
14
50
60
40
6
8
7
S&P 500
3/2
2/1
Mar 1979 Jun 1981 Mar 1981 Dec 1980 Sep 1980 Jun 1980 Mar 1980 Dec 1979 Sep 1979 Jun 1979 © 2009 Investor’s Business Daily, Inc. Flightsafety International increased 958% in 195 weeks.
lly lly l o e g e Dec 1978
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Company provides high technology h p training to operators of aircraf ft and i f s ships through the use of simulators ships through the use of simulators s u Lowers cost of pilot training. s General General a market turn t s s eeks tight closes and volume ral d s l ht s ti k back
d
t
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ii
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n n Market correction Market correction e Buy: 12-week cup-with-handle a u with prior 3 weeks tight closings with prior 3 weeks tight closings l e Buy: 3 weeks ti Buy: 3 weeks ti Buy: 3 week 3 Bu back abo back abo a le le Volume up Volume up l Mar 1978 Dec 1977
Flightsafety Intl.–1977 Weekly Chart M 1 p Buy 23-week double- 23-week double- b w hand bottom-with-hand h with bottom t Note: volume e Note: ote: y-up in handle dry-up in handle a y y Sep 1977 Jun 1977 Mar 1977
Price = 20*eps 3.00 2.50 2.25 2.00 1.80 1.60 1.50 1.40 1.30 1.20 1.10 1.00 0.90 0.80 0.75 0.70 0.65 0.60 0.55 0.50 0.45 0.40 0.35 0.30 0.25 0.23 0.20 0.18 0.16 0.15 0.14 0.13 0.12 0.11