Page 261 - How to Make Money in Stocks Trilogy

142 A WINNING SYSTEM

the stock at last tightened up its price structure from points I to J to K, and
15 weeks later, at point K, it broke out of a tight, sound base and nearly
tripled in price afterwards. Note the stock’s strong uptrend and materially
improved relative strength line for 11 months from point K back to point F.
So, there really is a right time and a wrong time to buy a stock, but under-
standing the difference requires some study. There’s no such thing as being
an overnight success in the stock market, and success has nothing to do with
listening to tips from other people or being lucky. You have to study and pre-
pare yourself so that you can become successful on your own with your
investing. So make yourself more knowledgeable. It isn’t easy at first, but it
can be very rewarding. Anyone can learn to do it. You can do it. Believe in
your ability to learn. Unlearn past assumptions that didn’t work.
Here are some faulty wide-and-loose patterns that faked people into buy-
ing during the prolonged bear market that began in March 2000: Veritas

Veritas Sftwr Large weekly pointpoinweer Price
spreads from high to low
spreads from high to lowhighds frr w w 190
Weekly Chart 160
140
Do NOT BuyNOT BuyOT Buo
Do 120
100
80
Stock falls 57%falls 57%7k fallst % % 70
Stock
i
eeksekss
we
wee
in 3 wn3wwn wee 60
50
40
34
30
26
22
3/2 3/2
Volume © 2009 Investor’s Business Daily, Inc.
50,000,000
30,000,000
18,000,000
Dec 1999 Mar 2000 Jun 2000 Sep 2000 Dec 2000 Mar 2001
S
Anaren Microwave Stock % % Price
Stock up 129%up 129%9ck up
in 9 weeksween
80
Weekly Chart 70
60
D
Do NOT Buy y y y 50
Do NOT BuyBuyNOT
40
34
30
26
22
19
16
Second leg downg dowond
First leglegei First 52% in 3 weeks;weeks% in 3 14
down 56% in56% in6% i
dow
down d doesn’t undercut’tsn’t d dercu t 12
3 weeksk
3 weeks 10
3/2 2/1
Volume © 2009 Investor’s Business Daily, Inc.
1,600,000
800,000
400,000
200,000
Dec 1999 Mar 2000 Jun 2000 Sep 2000 Dec 2000 Mar 2001 Jun 2001