Page 850 - How to Make Money in Stocks Trilogy

116 HOW TO MAKE MONEY IN STOCKS SUCCESS STORIES

Many of these are stocks that have already broken out. Stocks that are a
bit extended are great candidates, because Jerry knows from market history
that these are the stocks that are most likely to go higher. Stocks making new
highs tend to go higher.
Jerry looks for stocks with strong fundamentals, big earnings and sales,
and a great new product or service that is in demand.
He follows this “leaders index” as a gauge of the general market and
updates its performance on a daily basis. Jerry e-mails the daily results of the
index to several IBD Meetup Groups. He says that sharing the results helps
him stay “honest about what the market is actually doing.” Jerry also helps
teach at several IBD Meetup Groups and always enjoys the exchange of ideas.
He says, “I can wear Hawaiian shirts and shorts to work, come and go as
I please, take a vacation when I want, have the luxury of spending more time
with my family, and I don’t have a boss telling me what to do. It suits my per-
sonality well.”

• KEY POINTS •

• Winning stocks repeat themselves with similar patterns
and behaviors.
• Keep watching stocks that don’t work out the first time
they are bought. They may offer another opportunity.
• It’s important to get in early in a new bull market cycle.
That’s when market leaders really take off.
• If you’re doing very well in the market, be sure to keep
emotions under control.

• Reward yourself in some small way if you’ve had success.
• Stay out of a trendless market; small losses add up.

Mike Hicks

Mike first became interested in stocks through business courses taken in
college. His first job was at a CPA firm that had a library and a couple of
books on equities. After reading a few books, he decided to dabble in the
market.