Page 150 - How to Make Money in Stocks Trilogy

America’s Greatest Stock-Picking Secrets 71

Price 340 300 260 220 190 160 140 120 100 80 70 60 45 38 32 28 24 20 17 15 13 11 Volume 920,000 560,000 340,000 200,000 © 2009 Investor’s Business Daily, Inc.
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Add: 1st pullback u to 10-week moving k e n % ld t h w u m Jun 1987
ot t n n p s t d t10- average g a ve Stock up 20% in 3 2 u weeks, must hold u , for 8 full weeks from for 8 full weeks from e w u buy and can now c add small amount m Mar 1987
Do Not Buy! 3 weeks is no Do Not Buy! 3 weeks is no B N D a base, sell on way up on s s a this 4th stage non-base g t 4th 4 thi h Buy: possible o y B B high tight flag high tight flag h h h w d c l So due e % s Buy Buy B ek e w 1 n o t p o h ch h s
S&P 500 e a b n n b g f y o k e r y y d p Dry-up u r

Holding for 1st 8 weeks got you through 1st pullback down 1 g r u y g k to 40 and now you’re ahead 58% rather than 20%. So due han 20% n to 40 and now you re ahead 58% rather th h e a % e to exceptional action, you can hold through stock’s first c s g g g r h a u ,

moving average line
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Mar 1985 Jun 1985 Microsoft increased 272% in 30 weeks.
Software maker for PCs and servers. Businesses and Sof ftware maker for PCs and servers. Businesses and v s k consumers become more productive and increase c o b standard of living. Stock corrects, in late 1987, for two t l i ts Stk c i f li i years back and forth then advances 100 times in
d n n tw f 1987 9 c m o or 3 o 2 e Dec 1984
from 1989 to 1999.
weeks.
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Sep 1983 Dec 1983
Microsoft–1986 Weekly Chart Jun 1983 Mar 1983
Price = 20*eps 15 14 13 12 11 10 9.00 8.00 7.50 7.00 6.50 6.00 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.25 2.00 1.80 1.60 1.50 1.40 1.30 1.20 1.10 1.00 0.90 0.80 0.75 0.70 0.65 0.60 0.55 0.50