Page 45 - How to Make Money in Stocks Trilogy

© 2009 Investor’s Business Daily, Inc.
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Dec 1929
Note: 5 red weeks
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d week
Note: 5 red week
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from prior week
with volume up
with volume up
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fewer can bring themselves, af fter selling a stock at a loss,
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and can’t bring themselves to cut every loss at 8%. Even
Sep 1929
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This is the difference between
to buy it back higher. This is the difference between
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Jun 1929
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successful and unsuccessful investors.
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Mar 1929
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Dec 1928
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International Business Machines increased 400% in 161 weeks.
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to buy it back higher
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Sep 1928
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IBM was expanding and developing new, successful products Price s u r s p a in the 1920s. In 1925, it released horizontal sorting machines in the 1920s. In 1925, it released horizontal sorting machines i a t d 5 500 with a speed of 360 cards per minute and the first standard r n s m c D
Jun 1928
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Mar 1928
Dec 1927
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should drift down along lows
stock wedged up along lows
over prior 12 weeks. Handle
over prior 12 weeks. Handle
Sep 1927
due to premature buying,
Sell: down 8% from cost
Sell: down 8% from cost
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new industries and jobs.
new industries and jobs
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Jun 1927
was released
was released
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Add Add Add 7-week base e 7 w r dd e tk o It o Mar 1927 Dec 1926
, a h h h a g b Buy y B 36-week cup-with-long-handle handle l long o with that finally corrects for wedging up along lows by shaking out. It up along lows by shaking out t h Volume picks up on shakeout p e Sep 1926 Jun 1926
Intl. Business Machines–1926 Market correction t Very important: after shakeout : i if stock comes back up through if stock comes back up through c 10-week line on even greater n e volume you must buy it back! u m week cup c 36 y l then goes up 400% p s g 3/1 6/5 Mar 1926 Dec 1925 S
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Price = 20*eps Weekly Chart 20 18 16 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