Page 487 - How to Make Money in Stocks Trilogy

How I Use IBD to Find Potential Winning Stocks 357

els of successful stocks in all of past history and provide sound techniques
and methods for managing your portfolio wisely.
We also give classes and several levels of paid workshops, from beginning
to very advanced, on investing; in addition, we have a chart school, have sev-
eral books out, including this fourth edition of the one you’re reading, and
offer a home study course. We view our mission as being to teach anyone
who wants to learn how to become a better investor and protect himself so
he doesn’t get hurt in bear markets.
NYSE + Nasdaq Stocks On The Move
The first thing I read on page B1 is the “NYSE + Nasdaq Stocks On The
Move” tables—a feature that’s in no other publication. We have a massive
computer database that each day screens for those stocks that had the great-
est increase in trading volume over and above their average daily volume in
the last three months. This isolates the true demand for securities you
would not otherwise notice. On these lists, you’ll find many new, innovative
companies with names you may not know. But if they appear frequently,
you’d better find out what they’re doing or making. They could be the next
Microsoft or Apple.
In this current issue, Visa is on the NYSE list. It was up 4.6 points on a
volume increase to 239% more than normal for the credit card company.
Visa just reported earnings during a bearish period. There were also a few
medical stocks on the lists.
In addition to price and volume change, the tables show the same com-
pany variables IBD shows in its main stock tables. For example, IBD shows
the Earnings per Share rank of Visa as 99, meaning its earnings growth rate
in the last three years and in recent quarters puts it in the top 1% of all com-
panies in our database. This doesn’t mean the stock’s going to go up. But it
certainly means it has characteristics worth checking if you’re hunting for
entrepreneurial stocks that might outperform in a future better market.
We boldface those names on this list that have Earnings per Share and
Relative Strength ratings of 80 or higher, meaning they’re in the top 20% of
all stocks based on those measurements. The stocks with stronger records
are the ones you want to investigate.
Below the list of stocks that advanced for the day is a list of stocks that
were down in price. They too are ranked by percentage increase in volume.
You can judge the market environment and how well our new government
is doing by how many stocks are on the upside versus how many are on the
downside. In the example shown, the table has eight NYSE stocks on the
upside versus 36 on the downside, meaning there were more stocks that day
with greater-than-normal volume that dropped in price than that increased