Book : How To Make Money In Stocks Getting Started A Guide..

-Titulo Original : How To Make Money In Stocks Getting Started A Guide To Putting Can Slim Concepts Into Action

-Fabricante :

McGraw Hill

-Descripcion Original:

Excerpt. © Reprinted by permission. All rights reserved. How to Make Money in Stocks Getting StartedA GUIDE TO PUTTING CAN SLIM CONCEPTS INTO ACTIONBy Matthew GalganiThe McGraw-Hill Companies, Inc.Copyright ©2013 McGraw-Hill Education LLCAll rights reserved.ISBN: 978-0-07-181011-1ContentsForewordIntroductionCHAPTER 1 Start HereCHAPTER 2 The CAN SLIM® Investment SystemCHAPTER 3 Buying ChecklistCHAPTER 4 Simple Routines for Finding Winning StocksCHAPTER 5 Selling ChecklistCHAPTER 6 Dont Invest Blindly: Use Charts to See the Best Time to Buy and SellCHAPTER 7 More Tips and Tools for Getting Started RightAcknowledgmentsIndexExcerptCHAPTER 1Start HereBefore we get into the details in later chapters, I want to make sure you seethe primary goals-the big picture-here.So lets start with a quick look at the investing forest, then well startexamining the trees.If you ever start to feel a little overwhelmed as we go through the checklistsand charts later in the book, take a breather and come back here. You may evenwant to put in a bookmark or dog-ear this page as a reminder.That will help you stay grounded and focused on what matters most: Using basicrules and routines to both grow-and protect-your money.How to Protect Your MoneyThe Basic Game Plan for Making Money in StocksAction StepsHow to Protect Your MoneyTalking about how to protect your money-how to avoid big losses-isnot the most exciting way to kick off a discussion about building wealth. Butits absolutely critical.Job #1 in making money in stocks is to protect the money you already have.And you can do that just by following two basic rules. They will protect youeven when-in fact, especially when-the market becomes volatile andslips into a downtrend.When we go through the Selling Checklist later in the book, youll see severalcommon signals that tell you its time to lock in your gains or cut any losses.Over time, youll become better and better at spotting those signs, but fornow-at a minimum-be sure to stick to these two rules. Theyll helpyou safeguard your money as you learn new ways to grow it.1. If a Stock Drops 7% to 8% Below What You Paid for It, Sell. No QuestionsAsked.This one simple rule puts a cap on potential losses-like having insuranceto protect you against whatever the market does. Simple and sensible.Youll find its much easier to grow your money if you follow this rule. Insteadof trying to make up for larger losses, youll be adding to and compounding yourgains.I cant emphasize enough how important this rule is.Every investor-including legendary traders like Bill ONeil-makesmistakes. But successful investors quickly acknowledge those mistakes- andcut their losses short. Always. You should do the same, and you can do it byfollowing this one simple rule.See the Selling Checklist section for more on this rule-and how I learnedit the hard way.2. Only Buy Stocks When the Overall Market Is in a Confirmed UptrendIBDs study of every market cycle since 1880 shows 3 out of 4 stocks move in thesame direction as the overall market, either up or down.The overall or general market refers to the major indexes, primarily theNasdaq Composite, S&P 500, and Dow Jones Industrial Average.When the market is trending down, about 75% of all stocks will eventuallydecline with it.Does that sound like a good time to buy stocks? To keep the odds in your favorand make it much easier to grow your money, be sure to only make new purchaseswhen the market is in an uptrend.As youll see in the next section, The Basic Game Plan for Making Money inStocks, youll know if the market is in an uptrend or downtrend simply bychecking the Market Pulse inside IBDs The Big Picture column.Only make new buys when the current outlook is Confirmed uptrend.See the Buying Checklist section for more on this key rule and how to apply it.Protect and ProsperMost people start out focusing on what stocks to buy and ignore the otherabsolutely critical part of the puzzle-when to sell.All too ofte