Page 1257 - How to Make Money in Stocks Trilogy

More Tips and Tools for Getting Started Right 239

• When in doubt about what to keep or cut, focus on the “big rocks”:
■ Which stock has the biggest earnings growth?
■ Which company has the most innovative product or service dominat-
ing its industry?
■ Which stock is being most heavily bought by institutional investors?

Maintain Your Watch List in Strong and Weak Markets

Keep building and refreshing your watch list even if the market is in a down-
trend. The best stocks form bases during a correction, then quickly shoot
higher when a new uptrend begins. To catch these winners and make big
money when the market is up, you need to prepare while the market’s down.

• ACTION STEPS •

To take these steps, visit www.investors.com/GettingStartedBook.

• Watch my 2-Minute Tip video: 5 Steps to Building &
Maintaining a Profitable Watch List.
• Create your watch lists: Near Buy Point and Radar Screen
(or whatever setup works for you).
• Start regularly doing the simple routines to find new stock
ideas (Chapter 4).
• Make a game plan for stocks on your Near Buy Point list.