Page 722 - How to Make Money in Stocks Trilogy

26 HOW TO MAKE MONEY IN STOCKS SUCCESS STORIES

names. He prefers stocks that have low debt, a return on equity above 35%,
and a relative strength line that is making new highs. (A relative strength
line compares a stock’s performance to that of the S&P.) A stock that Ashish
found using these strong fundamentals was SolarWinds in October 2011.
Through mid-September 2012, he had gains of 122%.

• KEY POINTS •

• Concentrate on the top 25 names in the IBD 50.
• Look for low debt, a high return on equity, and a relative
strength line making new highs.

Stocks on the Move
Bharani Ramamoothi
Bharani is an IT professional with little time during the trading day. When
he has a quick coffee break, he checks Stocks on the Move at Investors.com
for stocks that are moving up or down on heavier than average volume sig-
naling institutional buying or selling. (Seen in IBD’s unique Volume %
Change.) This often alerts him to stocks that he puts on his watch list.
Bharani bought Tractor Supply out of a 3-weeks-tight pattern in March
2012 for a 20% return.

• KEY POINT •

• Check Stocks on the Move at Investors.com for stocks moving
up on above average volume.

IBD’s Videos and Weekly Radio Show
Brian Gonzales
Brian works in the IBD Meetup Development Department. When he was
first learning the CAN SLIM Investing System, he says, “The most helpful
tool I found was to watch the Market Wrap video on Investors.com/IBDTV
because it helped me stay in touch with what the market was doing on a
daily basis as well as how leading stocks were performing.”