Investors Business Daily has spent many years of in depth research to determine what works and makes money in the stock market. Below is a summary of their research from 1880 to present day. Also a video is included that summarizes these principles.

  1. Buy high and sell higher.
  2. Sell short when a stock has gone down substantially and buy back even lower.
  3. Buy leading stocks near their 52 week highs.
  4. Make buys only when the market is in a confirmed uptrend.
  5. Only buy stocks that are priced at $15 or more, stocks are below $15 for good reasons.
  6. Always buy into  price strength on the way up in price.
  7. Only buy market leaders and only hold them for their runs while they are leaders.
  8. Buying and holding stocks is dangerous over the long term.
  9. Only trade proven, researched, and tested systems.
  10. Buy the stocks that big institutions want to own at correct buy points.

Here is a current watch list for Monster Stocks based on price action. $AAPL $GOOG $CMG $CMG $ISRG

By Steve Burns

After a lifelong fascination with financial markets, Steve began investing in 1993 and trading his accounts in 1995. It was love at first trade. After more than 30 successful years in the markets, Steve now dedicates his time to helping traders improve their psychology and profitability. New Trader U offers an extensive blog resource with more than 4,000 original articles, online courses, and best-selling books covering various topics.