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leontes2674

Stock Market Success-how I Traded Yahoo

hot penny stocks In 1994, I started making use of the CAN SLIM method of trading stocks. This system was developed by William J. O'Neil, the founder of Investors Business enterprise Day-to-day. O'Neil employed the top performing stocks in history, as a blueprint for the technique. The technique requires implementation of both technical and fundamental analysis.

The aim is usually to locate top stocks of young, innovative corporations, ahead of they make major cost advances. This is achieved by only getting the incredibly best stocks at the appropriate time. The strategy also implements solid funds management. No system can have stock market success inside the long run, without keeping losses smaller.

In 1997, I was watching a young, innovative business named Yahoo, symbol YHOO. It went public in 1996, and was a leader inside the new online group of stocks. The fundamentals for instance earnings per share and sales had been fantastic. I knew I was watching a prospective huge winner, and my odds of stock market success were pretty substantial.

At this time, the general was within a confirmed uptrend, and Yahoo showed very good technical action. The stock located support at its 50-day moving typical several times. Then, in July, 1997, Yahoo broke via a important resistance region on very heavy volume. This can be when I purchased Yahoo at $27.00 per share.

The stock continued to show excellent technical action, as it moved up in cost. Whenever there was a downward price reaction, it was in low volume. This value and volume action told me the big institutions, including mutual funds, pension funds and bank funds, had been not obtaining out of the stock. This is quite bullish, considering the fact that huge institutions represent about 75% of all trading activity inside the stock market place.

In late October, 1997, Yahoo did break by way of its 50-day moving typical in heavy volume. This was my signal to acquire out in the stock. The huge institutions had been starting to sell. This main clue told me a massive cost decline was probably within the generating. I sold all my shares, and created almost 100% profit in about 3 months. I followed historically confirmed, purchasing and selling rules. This can be the way to realize stock market place success.

Don't be the product, buy the product!

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