Page 134 - How to Make Money in Stocks Trilogy

America’s Greatest Stock-Picking Secrets 63

Price 30 26 22 19 16 14 12 10 8 7 6 4.5 3.8 3.2 2.8 2.4 2.0 1.7 1.5 1.3 1.1 Volume 1,640,000 980,000 580,000 340,000 200,000 © 2009 Investor’s Business Daily, Inc.
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Add A s e week e w i part 2/1 Sep 1983
weeks weeks k we 4 we w 4w w tight closes l h 1 o u t nt t i o y 8 moths apart t t a h m Jun 1983
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S&P 500 in plit in t in pli l p p and volume e m o d s but price weekly k e e h u - o ti ti e comes back above 10-week comes back above 10 a c average line on big volume increas o n stock will w c s e y b lo Splits only 8 moths apa Splits only 8 n s Mar 1983
Sell: second 2/1 split in Sell: second 2/1 split / d c e months and only 8 months and t ths t n 8 s but price weekly p es but p increases bt u ncreases a c ds retrace much of e r spreads ads a me price area from 26-3 a a r ame same e m Add: price co e co Add: price c c

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Tight closes Tight closes s c A 5 o A p u k a b b Volume up Volume up m Vo Jun 1982
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Add d e e e Mar 1982
Buy y 38-week cup-with-handle handle n with week cup p Dec 1981 Sep 1981

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Note: If you pyramid, keep your average cost low, e r a o o keep d ramid p by never buying more shares at the higher prices, by never buying more shares at the higher prices o do not get top heavy with more dollars in at higher y prices than amount purchased earlier at lower t l t
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erage cost low
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Don’t get excessive.
Don t get excessive
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If
Note
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Buy Huge volume Sep 1980 Jun 1980
Market Mk k correction correction e n g u Mar 1980
Huge earnings acceleration c g a g Dec 1979
The Limited–1982 Weekly Chart Sep 1979 Jun 1979 Mar 1979

Price = 20*eps 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 0.10 0.09 0.08 0.07 0.07 0.07 0.06 0.06 0.05