Page 190 - How to Make Money in Stocks Trilogy

America’s Greatest Stock-Picking Secrets 91

Price 140 120 100 80 70 60 50 40 34 30 26 w w 22 19 16 14 12 10 8 7 6 5 Volume 12,000,000 7,000,000 4,000,000 2,000,000 © 2009 Investor’s Business Daily, Inc.

On top On top day, major Wall Street Wall Street brokerage b oke f f firm raises i m m m target price r up 50 more up 50 more up 50 points pullback ng as not a wn 8% below n8%below % s Peak close on Peak close on c huge volume v e 12% 8 8 r r Largest weekly
p On On O O O day Wa W f ar tar u u u poi OK to pu pu o pu ong as long n n own down n your cost c a g g g OK for handle to n h correct over 8–12% e if in bear market n bear market m m e down volume n Mar 1999
ll: climax top : climax top x m ell: cli Sell: cl Sell: c Se o o o k m a n d p r e OK K O s dow you you o yo O t r c a a n i if in i at time i a a o o e e e 3/2 Dec 1998

S&P 500 Stock breaks out on follow- s r k S through day in general market, through day in general market y u h beginning of new uptrend e f g n g n chwab never touches wab never touches s h t e wa Schw Sc c 0-week moving average line a v g v e 0 10 from buy at 29 until af ft

0
10
10
h
Dec 1997
3/2
Sep 1997
Jun 1997

Mar 1997 Charles Schwab increased 409% in 26 weeks.

Dec 1996 Sep 1996

Schwab was the pioneer o w of discount brokerages. a k t b u Jun 1996 Mar 1996

fdi
Dec 1995 Sep 1995

Charles Schwab–1998 Weekly Chart 3/2 Jun 1995 Mar 1995
2/1

Price = 20*eps 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 0.45 0.40 0.35 0.30 0.25 0.23