This chapter is a combination of trading checklists and what we've learned in this book. The checklists are helpful tips from my market experience. The second are the bullet items highlighted in the chapters and listed here for reference.
In the checklists that follow you'll see duplicate entries. The rules for not buying a stock are sometimes the same as for selling.
Here's what I look for before buying a stock:
If the averages are climbing, that's a good sign. If the averages are trending lower, then wait for them to bottom before buying. A simple moving average may help call the turn. Many use a 200-day moving average. Before it turns up, have a shopping list ready so that when the turn comes, you can buy immediately. Be aware that when you add an indicator (such as a moving average) to the mix, you'll be buying late. Buying late is better than buying too soon.
When reviewing the general market, I look for support and resistance zones, then project price movement into the ...