Page 911 - How to Make Money in Stocks Trilogy

Black Belt Trading: Investing Like a Pro 163

• Take note of stocks going up several weeks in a row, show-
ing institutional buying.
• Watch for too many stock splits. Several splits or an over-
sized split can sometimes make a company more lethargic
by creating a substantially larger number of shares, which
makes it harder for the stock to rise in price.
• Learn to handle a big winner once you find it.
• Many of the market’s biggest winners will have high liquid-
ity combined with soaring earnings growth.
• The market trend is the most important part of investing.
Stay in sync with the market so you are positioned to profit
from a market uptrend.

Eve Bobach

In 1995, Eve was browsing through a bookstore looking for stock investing
ideas and happened to pick up a copy of How to Make Money in Stocks. She
had always found the complexity and speed of change in the markets fasci-
nating and was immediately hooked by growth stock investing possibilities.
Later that year, Eve attended her first advanced IBD Seminar and was
excited to meet Bill O’Neil in person. She took her copy of How to Make
Money in Stocks up to Bill after the workshop and asked for his autograph.
He signed, “Buy the best companies with great earnings, coming out of
bases.” It’s something Eve has never forgotten and often reads to remind
herself of what to look for in the very best stocks.
Over the years, Eve has attended dozens of IBD Workshops. She says
they “reinforce everything that is in Bill’s book.” From them, she has
learned what to look for in the technical patterns and key fundamental fac-
tors in leading stocks.
In early 1996, Eve bought Whole Foods Market after the stock followed
through on a high-volume breakout from a cup-with-handle base and made
some nice gains. At the time, Whole Foods had only 35 stores, with plenty
of opportunities to expand. Some of the key fundamental numbers
included: latest quarter earnings 41%; latest quarter sales 24%; and
Accumulation/Distribution Rating A. (This rating measures whether a stock