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Quick Reference On Buying

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43 views

Quick Reference On Buying

Uploaded by

Uma Maheshwaran
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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Quick Reference on Buying

(Source: Stan Weinstein pp115 – 116)

1. Overall trend of the market should be UP.


2. Identify the best performing sector.
3. Screen for stocks that are forming a base in this sector.
4. Determine the breakout price.
5. Discard stocks that have overhead resistance very near the breakout.
6. Narrow down the list further by checking Relative Strength.
7. Buy half the desired position at the determined breakout price.
8. If Volume had gone up on the breakout and contracted on the pull back
buy the other half position.
9. If the volume had not gone up on breakout, sell your half position on the
first rally after a pull back.
10. If the stock does not rally after the breakout and instead falls below the
breakout point, SELL it immediately.

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