Sublime

At the same time, sell and eliminate stocks that start to show losses before they become big losses.

take 20% profits when you have them (except with the most powerful of all stocks) and cut your losses at a maximum of 8% below your purchase price.

I learned that your objective in the market was not to be right, but to make big money when you were right.

the day’s volume should increase at least 40% to 50% above normal.

Steve Birch, another of our in-house money managers, started managing money earlier. He took advantage of the roaring bull market of the late 1990s and protected most of his gains by going mainly to cash in the bear market. Between 1998 and 2003, he had gained over 1,300%.

As for stocks, I like Peter Lynch’s book Beating the Street for his formula for selecting stocks that grow in value.

Therefore, you should apply your CAN SLIM system and select the best possible stock at the best possible time.

C Current Quarterly Earnings and Sales: The Higher, the Better A Annual Earnings Increases: Look for Significant Growth N New Products, New Management, New Highs: Buying at the Right Time S Supply and Demand: Shares Outstanding Plus Big Volume Demand L Leader or Laggard: Which Is Your Stock? I Institutional Sponsorship: Follow the Leaders M Market

The winning investor’s objective should be to have one or two big winners rather than dozens of very small profits. It’s much better to have a number of small losses and a few very big profits.