Buy stocks near their proper breakout points from sound chart bases
Focus on companies with strong current quarterly earnings and sales growth
Look for annual earnings growth and strong profit margins
Prefer market leaders with superior new products, services, or management
Buy stocks with high relative strength versus the market
Use volume to confirm institutional buying
Cut losses quickly, typically around 7% to 8% below purchase price
Avoid averaging down on losing positions
Buy higher-quality stocks rather than low-priced laggards
Pay attention to general market direction before buying
Study chart patterns such as cup with handle, double bottom, and flat base
Concentrate on supply and demand dynamics
Seek stocks with increasing institutional sponsorship
Avoid overdiversification
Sell into strength when a stock becomes extended from a proper base
Protect gains with disciplined sell rules
Keep cash when market conditions are unfavorable
Learn from historical market winners
Emphasize growth over low valuation alone
Use earnings and sales acceleration as key selection criteria
Follow a repeatable investing system with strict rules