Page 1222 - How to Make Money in Stocks Trilogy

204 HOW TO MAKE MONEY IN STOCKS—GETTING STARTED

110 100 90 80 70 60 50 46 42 38 34 30 28 26 24 22 19 17 15 14 13 12 11 10 7,000,000 4,000,000 2,000,000 © 2013 Investor’s Business Daily, Inc.
Price Volume 12,000,000 Dec 08

Fails to break out from this late-stage base Drops 67% from peak in 12 months Sep 08 Jun 08

4th-Stage Base Cup-with-handle Now a Late-Stage Base Proceed with caution. China Mobile already up 158% in just 19 months. Bull market that began in March 2003 Mar 08 Dec 07 Sep 07

Don’t forget impact of overall market: Bear market begins Nov. 2007. Takes China Mobile and most leading stocks 3rd-Stage Base Base-on-base now over 3 1/2 years old, becomes choppy. China Mobile shows similar choppiness over next several months, but continues to trend generally higher. Jun 07 Mar 07

down with it.

Jun 06 Sep 06
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