Page 845 - How to Make Money in Stocks Trilogy

112 HOW TO MAKE MONEY IN STOCKS SUCCESS STORIES

• KEY POINTS •
• Learn to read charts.

• Let the overall market trend be your guide, whether it’s a
good time to be in stocks or not.

• Follow a daily routine to stay in sync with the market and
leading stocks.
• Take most profits at 20 to 25%.

• Cut every loss 7 to 8% from the price paid for the stock.
• Never buy stocks right before earnings.

Jerry Samet

Jerry had been a professional investor in the stock market for several years
before coming across the CAN SLIM Investing System. After the crash of
1987, which left many investors stunned, a friend handed Jerry a copy of
Investor’s Business Daily. After seeing the quality of the paper and the
information that was in it, Jerry bought How to Make Money in Stocks and
devoured the book. Suddenly, a lot of things made sense about the market
that he had never realized before, even as a professional trader.
By the time the bull market of 1991 started, Jerry formed an investment firm
with a partner and began to experience tremendous gains using the system.

A Stock That Triples in Price Can Still Go Up
Jerry had his first eye-opening experience with growth stock investing when
he bought ECI Telecommunications. The stock had already tripled in price
before he bought it in August 1991. Jerry sold ECI in March 1992 for a gain
of nearly 200%. Before he learned CAN SLIM Investing, Jerry “thought
anyone would be crazy to buy a stock that had already tripled in price before
they bought it.”

The Unexpected
In 1992, Jerry found himself in a very difficult and stressful situation. His part-
ner had died of a heart attack, leaving him the burden of managing $10 mil-
lion by himself. Jerry says he was never really the corporate type. Addressing