Month: January 2020

David Ryan

Yes. Stocks should be at a profit the first day you buy them. In fact, having a profit on the first day is one of the best indicators that you are going to make money on the trade.

So, a stock which is at new highs has much more of an open running field?

David Ryan

Right, because no one ahead of you is at a loss and wants to get out at the first opportunity. Everybody has a profit; everybody is happy.

David Ryan

Yes, because that shows me there is something very unusual going on, and if the situation is that good, a doubling may just be the beginning. It is probably going to double again.

David Ryan

I check the number of shares outstanding. I am looking for stocks with less than thirty million shares and preferably only five to ten million shares. Stocks with more than thirty million shares are more mature; they have already split a few times. It is a case of supply and demand: Because you have more supply, it takes a lot more money to move those stocks.

David Ryan

That is what a lot of people think. They say, “It’s too late to buy the stock; the earnings are already on the table.” However, in analyzing hundreds of the biggest winners, we found that, in many cases, the earnings had been on the table for a while.

William O’Neil

The stock market is neither efficient nor random. It is not efficient because there are too many poorly conceived opinions; it is not random because strong investor emotions can create trends.

William O’Neil

Stocks are like anything else. You can’t buy the best quality at the cheapest price!

William O’Neil

Diversification is a hedge for ignorance. I think you are much better off owning a few stocks and knowing a great deal about them.

William O’Neil

Second, you have to realize that you will never sell the exact top. Therefore, it is ridiculous to kick yourself when a stock goes higher after you sell.

William O’Neil

If you aren’t willing to cut your losses short, then you probably should not buy stocks. Would you drive your car without brakes?