Page 746 - How to Make Money in Stocks Trilogy

46 HOW TO MAKE MONEY IN STOCKS SUCCESS STORIES

which he began in 1987. He’s very encouraging to newer investors and men-
tors a group of retirees as a way of giving back to the community. “The aver-
age person can definitely learn to invest successfully if they are willing to put
in some time and effort,” he says.
“Aloha Mike” says there are three key elements to investing:
1. Market Timing. Get in sync and stay in sync with the market direction.
2. Stock Selection. Find the great CAN SLIM stocks that are moving up.

3. Money Management. Start your positions small. Add if you’re making
gains.

“What you want to do is force-feed stocks that are outpacing the market,”
says Mike. “Never average down and add to stocks that are going against
you.”
One of Mike’s best trades was with NVR Inc., the parent company of
Ryan Homes, NVR Homes, and Fox Ridge Homes. Mike traded in and out
of the home builder, capturing 300% of its 429% move.
“Aloha Mike” rewards himself with a new Hawaiian shirt every time he
makes a 25% gain in a stock and says he has a closet full of them.

• KEY POINTS •

• Follow the market direction.
• Select the best CAN SLIM stocks that you can find.
• Start your positions small; add if you’re making gains.

Wait for a Follow-Through Day: The Market Is Not a Casino

Gennady Kupershteyn’s years of investing experience have taught him that
there are optimum periods of time for owning stocks.
“After the market issues a follow-through day,” says Gennady, “volatility
usually quiets down, and it becomes much easier to hold stocks, particularly
if you’re following the rules. The key is to be patient and extremely selec-
tive. Within four weeks of a successful follow-through day, new high quality
names will begin to break out.
“A lot of people have said to me that investing in the stock market is like
gambling, but to me, the market is only like a casino if you treat it like one,”