Page 1221 - How to Make Money in Stocks Trilogy

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HOW TO MAKE MONEY IN STOCKS—GETTING STARTED
7,000,000
4,000,000
2,000,000
26
28
22
24
38
42
30
34
19
11
12
12,000,000
10
15
17
13
14
46
80
70
90
100
110
60
50
Volume
Price
Drops 67% from peak
Fails to break out from
this late-stage base
in 12 months
Proceed with caution. China Mobile already up 158% in
just 19 months. Bull market that began in March 2003
Cup-with-handle
4th-Stage Base
Mobile shows similar choppiness over next several
now over 3 1/2 years old, becomes choppy. China
months, but continues to trend generally higher.
Now a Late-Stage Base
China Mobile and most leading stocks
Don’t forget impact of overall market:
Bear market begins Nov. 2007. Takes
3rd-Stage Base
Base-on-base
down with it.
Jun 06 Dec 08 Sep 08 Jun 08 Mar 08 Dec 07 Sep 07 Jun 07 Mar 07 Dec 06 Sep 06 © 2013 Investor’s Business Daily, Inc. lead to good gains, but they are riskier than first- and second-stage patterns.
2nd-Stage Base Base-on-base Mar 06 Dec 05
Sep 05 Jun 05 Mar 05
2008 Biggest gains typically made from 1st- and 2nd-stage bases. 3rd-, 4th- or later-stage bases may work, but are riskier. By the time a stock forms that many bases, it typically has already made a big move and the underlying Dec 04 Sep 04 Later-stage bases can
– 1st-Stage Base Cup-with-handle Jun 04
Mobile Beware of Late-Stage Bases bull market is getting old. Mar 04
China Weekly Chart Dec 03