Page 859 - How to Make Money in Stocks Trilogy

122 HOW TO MAKE MONEY IN STOCKS SUCCESS STORIES

excessive stock splits. Mike made note of this and called his broker that
afternoon. He took his entire gains off the table. After Taser released earn-
ings and disappointed analysts’ expectations, the stock cratered 29%.
Mike had sold exactly at the right time and had bagged a 294% gain in a
stock on top of earlier gains of 105%. This was a very emotional moment for
Mike. He closed the door to his office and sat in his chair as tears welled up
in his eyes. It was a life-changing moment. Mike had made a six-figure profit
in a stock, and he could now pursue his retirement dream of selling his CPA
firm and turning to investing full time.
Having a huge gain was both a blessing and a curse, however. After the suc-
cess Mike found with Taser, he felt every stock would be a huge winner and, as
a result, has had a tendency to be a home run hitter since then. The problem
he found is that not all market environments produce giant gains like Taser.
Mike has since learned to take profits at 20 to 25% instead of giving back
hard-earned profits.
One thing that helps him stay in step regularly with the market and
reduce his mistakes is teaching. In October 2003, after Mike’s first big gain
in Taser (TASR) of 105%, he formed an IBD Meetup Group in his home-
town of Clearwater, Florida. He said this was one of the best decisions he
has made in his stock market career. He has found other people who are
passionate about the market and who invest the same way. Mike has also
enjoyed helping a number of newer investors get started and enjoys watch-
ing their success.

• KEY POINTS •

• Focus on stocks with strong fundamentals breaking out of
areas of consolidation on big volume.
• Sit patiently with a stock that is a true market leader.
• Don’t try to be a home run hitter all the time. Not all market
environments produce gains like Taser’s.
• Read The New America article.
• Look for unique products that are in big demand.