1. Select mostly top growth stocks with over 30% increase in revenues and earnings.
2. Buy normally between $15 - $150. Lower accepted on beaten down high quality companies.
3. Limit each stock to a maximum of 5% - 10% of portfolio total.
4. Use 10% as 'play money' for buying any stock you want.
5. Keep 10% in cash to buy on dips and corrections or invest in those with upward momentum.
6. Knowing when to sell is one of the most important keys to investing success.
7. Let winners continue their ride up. Study their charts.
8. Stop loss limit of 5% - 20% - raising it as the stock price goes up.
9. Use 5% for less volatile and 20% for high volatile stocks to minimize losses.
10. Do not fall in love with any stock. Make every dollar perform to the max.


11. Trade up to best-performing stocks. Replace stocks only with better potential ones.
12. Buying opportunity trend is above 50 and 200 day moving averages.
13. Last first and last few days of the month are usually an up trend buy period.
14. Buy mostly stocks owned by top-performing mutual funds and institutions.
15. Buy mostly stocks in the top-performing industries and sectors (which is 50% of move).
16. Biggest stock winners are in the top 20% of an industry group.
17. Stick with leading stocks in a leading industry group, display market leadership.
18. Rebalance portfolio as necessary with leading stocks in leading industries and sectors.
19. A stock's move is 37% to industry performance and 12% to overall sector strength.
20. Being in the right industry group is almost as important as owning the right company.


21. Buy stocks making new highs on increasing volume. They tend to go higher.
22. Seek stocks with 25% accelerating quarterly sales growth and high profit margins.
23. Pick stocks with 20% ROE, 20% pre-tax profit, and 10% after tax-profit of it's all time high.
24. 95% of stock winners had breakthrough products, new management, or innovations.
25. Pick stocks on earnings, industry group performance, institutional sponsorship, charts.
26. Small caps ($250 million or less) tend to outperfrom big caps ($500+ million).
27. Research business and investment publications, sites, annual reports, charts.
28. Use a tax-deffered account for retirement purposes.
29. Investor's Business Daily provides most of the statistics you will need.
    • Select primarily stocks with 98 - 99 and A or B ratings.
    • Select quality companies that are at bargain prices.