Secrets for profiting in bull and bear markets
Sam Weinstein
Check market indicators for overall direction
Scan the industry groups to know which one to zero in
Cull out the stocks with the most potentially profitable formation within the favourable groups
Concentrate majority of buying in continuation-type buy patterns that are already in Srage 2, and reverse for bear markets
Know where protective stop will be (ALWAYS use it) set before entering the order – if it's too far away, look for other stock or wait to purchase when safer level forms
Never sell a stock in Stages 1 or (especially) 2, AND never buy a stock in Stages 3 or (especially) 4 – stage analysis can be applied to any investments that are governed by supply and demand
Never guess a bottom (and go long)
Don't feel that one has to be 100% invested all the times. Differentiate when charts and indicators point to fully invested and when to extreme caution
Always be in harmony with the market – buy Stage 2 strength; sell Stage 4 weakness
In case of conflict between price volume action and the earnings, always go with objective message being supplied by technical approach
Always be consistent. Keep a diary and analyze actions
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