#1: Look for stocks with strong earnings growth: The key to making money in stocks is to invest in companies that have strong earnings growth.
#2: Follow the market's major trend: To minimize risk, follow the market's major trend and only investing in stocks that are in uptrends.
#3: Use technical analysis to identify buy and sell points: Using technical analysis to identify buy and sell points in individual stocks. This involves analyzing price and volume patterns
#4: Cut losses quickly: The importance of cutting losses quickly if a stock starts to go against you. He suggests setting a 7-8% stop-loss point for each stock you own.
#5: Take profits when you have them: Taking profits when you have them, rather than holding onto a stock for too long and risking giving back your gains.
#6: Avoid buying stocks that are extended: Cautions against buying stocks that are extended, meaning they've already had a big run-up in price and are now trading at a high valuation.
#7: Look for stocks with strong institutional support: They're being bought up by mutual funds and other big investors.
#8: Stay focused and disciplined: When investing in stocks. This means sticking to your investment strategy and avoiding emotional decisions.
#9: Continuously educate yourself: Investors should continuously educate themselves about the market and investing. This can include reading books, attending seminars, and studying successful investors.
#10: Lastly be patient: Finally, O'Neil advises investors to be patient and to have a long-term outlook. Investing in stocks is not a get-rich-quick scheme, and it can take time to see significant gains.
Disclaimer : Above content purely for Educational purpose, Do your own research before taking any position.
Source : Books
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