Page 184 - How to Make Money in Stocks Trilogy
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88 A WINNING SYSTEM
Price 80 70 60 50 40 34 30 26 22 19 16 14 12 10 8 7 6 4.5 3.8 3.2 2.8 Volume 1,560,000 940,000 560,000 340,000 200,000 © 2009 Investor’s Business Daily, Inc.
or below d d or below w w ine. Buy n in moves moves o ver line with ver line with ase in volume Jun 1996
Sell rule clicks in s ule cli l e Add: second c Add Add d d pullback at or pullback at o k b u 10-week lin k w 0 k m as stock m k m as stock k k t s ve e back ov back ov k a eas increas n o u k k llb e - e moving average line moving average line e a me up Vo
S&P 500 Sell rul S S S d Add Ad Ad n ne ne Volume dry-up on r m l second pullback a u d bit below 10-week l v n Dec 1995
Add: first llba pullba pullb b b bounce off bo bo w 10 eks ks week e e w must hold u u Sep 1995
rst irst s s llback and back and k week line 10-week line k d V c s b o 2/1
ht tig k Up 20% in only 2 wee Up 20% in only 2 wee o o kf
t A p b b 1 mus m buy b b m m
3 of 4 3f 4 4 4 weeks k w close tight e l e g rule e y % 0 rom buy point, mu y b for 8 weeks from e 8 w 2/1 s e Jun 1995
es e e r n s n d n n z l n n n Market correction c r End of 8 week o n holding rule holding r i o Buy B Up U fro fo Volume increases Volume increases Volume increases e n Mar 1995 Dec 1994
This is all about money management and following sound rule o n m rather than personal opinions, emotions or being lazy and not t i i b ti t i i i l o th doing any homework but just hoping to be lucky doing any homework but just hoping to be lucky j w Sep 1994 Jun 1994 Mar 1994 Dec 1993 J
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4. The next week, the stock has its first the stock has its first t The next week w 20% correction and shakeout that you sit a 0 through and the stock rallies back to 28, through and the stock rallies back to 28 r rection. Here then 30 and starts another cor rrection. Here ts anothe o here yo
J L G Industries–1995 Weekly Chart 4. 1. Stock up 20% in first 3 weeks s Stock up 20% in first 3 weeks s % so must hold for complete 8 e o h weeks from pivot buy point weeks from pivot buy point n v h 2. At end of 8 weeks, stock 2. At end of 8 weeks, stock c w s now up 33% so with more wit
Price = 20*eps 3.50 3.00 S 1 m 2.50 e 2.25 At 2.00 o 1.80 g pro pr 1.60 1.50 1.40 o 1.30 mov 1.20 r 1.10 d 1.00 e 0.90 r 0.80 0.75 0.70 N 3 0.65 t 0.60 k r 0.55 v. 0.50 lit 0.45 b 0.40 Y Y e 0.35 r 0.30 y c
