26 May

We have now completed up William O’Neil’s book, 24 Essential Lessons for Successful Investment, and found it to be a huge resource of stock tips for beginners. There are plenty of huge investment tips which were highlighted at the end of each and every chapter, and to summarize the book this post we will declare 57 of them.

The most excellent thing about the book in our view was the simplicity behind the stuff. Will O’Neil always seems to do an excellent job of making the reader simple and understandable by everyone, investors, and it actually broke down his canslim style which is one of the most famous if not most broadly followed and used an investment strategy in survival today.

57 Stock Tips For Successful Investment.

  1. As a Beginner investor, be ready to take some very little losses. (See also 10 Great Ways to Learn Stock Trading as a Beginner Investor)
  2. Always cut your losses at 8 % – 9% below your buy price.
  3. Stubbornness is key when educate to invest. Don’t get discouraged.
  4. Learning to invest doesn’t happen during the night. It takes time and effort to become winning at it.
  5. When getting started, it is significant that you choose the correct full service or discount advisory. If you use an advisory, make sure he or she has a good track record.
  6. As a beginner, set up a currency account, not a margin account.
  7. It just takes $500 to $1,000 to get in progress. Knowledge is a great teacher.
  8. Avoid more unstable types of investments, such as options, futures, and foreign stocks.
  9. Focus on a few, high-quality stocks. There’s no need to own 20 or more stocks.
  10. Don’t get emotionally concerned with your stocks. Follow a set of purchasing and selling rules, and don’t let your emotions change your mind
  11. Don’t purchase a stock under $15 a share. The most excellent companies that are best in their fields simply do not come at $5 or $10 per share.
  12. Learning from the top stock market winners can lead you to tomorrow’s leaders.
  13. Always do a post-analysis of your stock market trades so that you can learn from your mistakes and success.
  14. A combination of basic and technical investment styles is necessary to pick winning stocks.
  15. Basic analysis looks at a company’s income, income growth, sales, benefit margins, and return on equity between other things. It helps narrow down your choices so that you are only trading with quality stocks.
  16. Technical analysis involves learning to read a volume chart and the stock’s price and timing your decisions accurately.
  17. To make huge money, you have got to purchase the very best companies at the right time.
  18. Strong sales and income are amongst the most significant characteristics of winning stocks.
  19. Purchasing a stock as it is coming out of a price consolidation area or base is essential to making huge gains.
  20. Always pick stocks from the leading industry sectors or groups. The majority of past market leaders were in the top industry sectors and groups.
  21. A lot of big winning stocks come from sectors such as medicine and drugs, computers, specialty retail, software, communications technology, and leisure and entertainment.
  22. Volume is the real number of shares traded by a stock.
  23. Stocks never go up by accident. There must be huge purchased, typically from large investors such as pension funds and mutual funds.
  24. By studying the most stock market winners over the past 35 years, bases formed just previous to the stock broke out into new high ground in price and then went on to make their largest gains.
  25. The most common pattern is a “cup with handle” names so because it resembles a coffee cup when viewed from the side.
  26. The optimal purchasing point of any stock is the ” axis point”.
  27. On the day a stock breaks out, volume should rise by 40 % – 50% or more above its average.
  28. A decrease in price in decreased volume indicates no important selling.
  29. Replace the old adage, “purchase low and sell high” with “purchase high and sell a lot higher.”
  30. You want to purchase a stock at its axis point. Don’t chase a stock up more than 5% past its axis.
  31. Chart price and volume action regularly can help you make out when a stock has reached its top and should be sold.
  32. History always repeats itself in the stock market.
  33. Most big stock market leaders breaking out of a sound base will go up 20% in eight weeks or less from the axis point. Never sell a stock that does this in four weeks or less, you may have a huge winner.
  34. The common market is represented by leading market indices like the Dow Jones Industrials, and the NASDAQ Composite. Tracking the common market is key because most stocks follow the trend of the common market.
  35. Ignore individual opinions about the market.
  36. A typical bear market will decline 15% to 20% from its peak price. A negative economic or political environment could cause a more severe decline.
  37. Knowing when to both purchase a sell a stock is key for success.
  38. Three out of 4 stocks, regardless of how “good’ will finally follow the trend of the overall market.
  39. After five or four days of distribution within a two to three week period, the common market will usually trend downwards.
  40. Bear markets make fear and uncertainty. When stocks hit bottom and turn up to start the next bull market loaded with opportunities, most people just don’t trust it.
  41. At some point on the method down, the indices will effort to rally or rebound. A rally is an effort by a stock or the common market to turn up and advance in price after a period of decline.
  42. Most technical market indicators are of small value. Psychological indicators like the Put-Call ratio can assist verify changes in the market’s way.
  43. Once you decide you are operating in an up trending common market, you require to choose superior stocks.
  44. Potential winners will have a strong income and sales increase, rising benefit margins and high return on equity. They should also be in a leading industry group.
  45. Using a chart service can help you decide if the timing is right to purchase a stock.
  46. Growth investors look for companies with strong income and sales growth, bigger benefit margins, and a return on equity of over 17%.
  47. Value investors find for stocks that are undervalued and have low P/E (price-to-earnings) ratios.
  48. When starting to invest, continue it simple. Only invest in mutual funds or domestic stocks.
  49. You obtain what you pay for in the market. Cheep priced stocks are usually cheap for a good reason
  50. There are 2 fundamental types of investors: value investors and growth stock investors.
  51. Options are risky because investors do not only have to be correct about the way of the stock, but also concerning the time frame in which they consider the price will go up or down.
  52. Futures, due to their very approximate nature, should be attempted to only be people with several years of winning investment experience.
  53. Broad diversification and benefit allocation are not essential. Focus your eggs in less basket, know them well and watch them very carefully.
  54. If you have previously owned the maximum number of stocks purchase want to add a new stock to your collection, force yourself to sell the small amount profitable stock to get money for the new name.
  55. Don’t allow yourself to lose money after you already had a sensible profit.
  56. 40% – 50% of stocks will pull back to their first purchase point-sometimes on huge volume- for one or two days. Don’t let this brainstorm you out of your stock.
  57. Sell a stock if its income per share shows a major deceleration in growth for two quarters in a row.
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We have now completed up William O'Neil's book, 24 Essential Lessons for Successful Investment, and found it to be a huge resource of stock tips for beginners. There are plenty of huge investment tips which were highlighted at the end of each and every chapter, and to summarize the...