C A N S L I M
Investors Business Daily (IBD) system of investing and trading growth stocks can result in attaning gains of 2 to 2 and 1/2 times better than the general market - utilizing the performance of the $SPY as a proxy for the performance of the general market. Here is an excellent video by Richard Moglen who goes into the details of the highlights of IBD system of trading growth stocks.
Review it on a regular basis to keep you grounded to the system. We have been in a bullish trend since February of 2016 with minor pull backs of 3% to 8% along the way. That is perfectly normal and something every growth stock investors looks for. Minor corrections helps shake out the weak holders of stocks. It also helps set up new bases for stocks to take a breather and set up for the next move higher.
August and September months are traditionally some of our weakest months in the market. It's hard to make progress with your portfolio when the market is volatile as it has been for the last couple of weeks. Don't be dismayed though. Observe the strict rules of mitigating risk and dispose of stocks that are not making much progress. It's best to conserve CASH right now and harvest partial profits in stocks that have attained gains of +20% to +25%. Our best months in the market tends to be between November through April. History suggests that if the market is up the first 6 months of the year, than the latter 1/2 of the year will also have a positive performance. Have the CASH available in your account to take the advantage of rally in the Fall.
Happy Trading !
Amin
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