Submitted by IceDuck ( in our Chat-Room )
Long Term Charts - Long
term charts of the Dow ,S&P ,Nasdaq , Gold and
Treasury Bonds - http://stockcharts.com/charts/historical/
20 Rules For Stock Market Success
If all of IBD's 20 rules are
carefully followed (not just the ones you like), your
investment results should materially improve:
- Consider buying stocks with
each of last three years' earnings up 25% or more, return
on equity of 17%+ and recent earnings and sales
- .Recent quarterly earnings
and sales should be up 25% or more.
- Avoid cheap stocks. Buy
higher quality stocks selling $15 a share and higher.
- Learn how to use charts to
spot sound bases and exact buy points. Confine your buys
to these points as stocks breakout on big volume
- Cut every loss when it's 8%
below your cost. Make no exceptions so you can always
avoid huge, damaging losses. Never average down in price.
- Have selling rules on when to
sell and take a profit on the way up. Review "When
to Sell and Take a Profit" in How to Make Money in
- Buy when market indexes are
in an uptrend. Reduce investments and raise cash when
general market indexes show five or more days of volume
- Read IBD's "Investor's
Corner" and "The Big Picture" columns to
learn how to recognize important tops and bottoms in the
- Buy stocks with a Relative
Price Strength Rating of 85 or higher in the IBD
SmartSelect® Corporate Ratings.
- Pick companies with
management ownership of stock.
- Buy mostly in the top six
broad industry sectors in IBD's New High List.
- Select stocks with increasing
institutional sponsorship in recent quarters.
- Current quarterly after-tax
profit margins should be improving and near their peak
- Don't buy because of
dividends or P-E ratios. Buy the #1 company in an
industry in earnings and sales growth, R.O.E., profit
margins and product quality.
- Pick companies with a new
product or service.
- Select mainly New America
entrepreneurial companies (they had an IPO within the
last 8 years).
- Check into companies buying
back 5% to 10% of their stock and those with new
management (what is management's background?).
- Don't try to bottom guess or
buy on the way down. Never argue with the market. Forget
your pride and ego.
- Find out if the market is
currently favoring big cap or small cap stocks.
- Do a post-analysis of all
your buys and sells. Post on charts where you bought and
sold each stock. Evaluate and develop rules to correct
your major past mistakes.