Page 1256 - How to Make Money in Stocks Trilogy

238 HOW TO MAKE MONEY IN STOCKS—GETTING STARTED

Don’t hesitate to be picky! Only keep stocks that pass the Buying
Checklist with flying colors on your list. Over the long term, focusing on the
strongest stocks will generate the biggest returns.

■ ✔ Use the Simple Weekend Routine and IBD tools to find quality
stocks.

• See “Simple Routines for Finding Winning Stocks” (Chapter 4) and
“More Ways to Find Winning Stocks” (later in this chapter).
• Run the most promising stocks through the Buying Checklist. If they
pass, add them to your Near Buy Point list. If a stock has the CAN SLIM
traits but is not currently near a buy point, you can add it to your Radar
Screen list.

■ ✔ Make a game plan for stocks on your Near Buy Point list.

To catch a stock as it breaks out, you need to make your game plan ahead
of time. It’ll often be too late if you wait until after the stock has begun its
move.
At a minimum, be sure to note:

• The ideal buy point
• How many shares you’ll buy if the stock breaks out on heavy volume

Trade triggers: You can also set up automatic trade triggers ahead of
time if you can’t watch the market during the day (Chapter 4).
Earnings season: Check when a stock you’re tracking is scheduled to
report. Stocks can make a big move—up or down—when they release their
latest numbers (Chapter 3).

■ ✔ Review and refresh your watch list regularly.

Your watch list will only be actionable and effective if you keep it focused
and up to date.
• Regularly refresh your list as part of your weekend and/or daily routine.
• If you’ve reached the maximum number of stocks you set for your list, be
sure to remove your weakest stock before you add a new one.