GeaSphere LLC and its representatives recommend the Investor's Business Daily:
20 Rules For Investment Success to our clients. Please follow these guidelines when investing,
to ensure safe and profitable investments throughout your lives.
- Consider buying stocks with each of the last three years' earnings up 25%, return on equity of 17% and recent earnings and sales accelerating.
- Recent quarterly earnings and sales should be up 25% or more!
- Avoid cheap stocks. Buy stocks selling for $15 to $100 or more.
- Learn how to use charts to see sound bases and exact buy points. Confine buys to these points as stocks break out on big volume increases.
- Cut every loss at 8%. Make no exceptions, and you may avoid huge losses!
- Follow selling rules on when to sell and take a profit during an uptrend.
- Buy when market indexes are in an uptrend. Reduce investments and raise cash levels when general market indexes show five days of increased volume distribution.
- Read IBD's Investor's Corner and Big Picture columns to learn how to recognize important tops and bottoms in market indexes.
- Buy stocks with a Composite Rating of 90 or more and a Relative Price Strength Rating of 85 or higher in the IBD SmartSelect Corporate Ratings.
- Pick companies with management ownership of stock.
- Buy mostly in the top six broad industry sectors in IBD's New Highs List.
- Select stocks with increasing institutional sponsorship in recent quarters.
- Current quarterly after-tax profit margins should be improving, near their peak and among the best in the stock's industry.
- Pick companies with a superior new product or service.
- Invest mainly in entrepreneurial New America companies. Pay close attention to those with an IPO in the last 8 years.
- Check into companies buying back 5% to 10% of their stock and those with new management. Look at the new management's background to further assess potential.
- Don't try to bottom guess or buy on the way down. Never argue with the market. Forget your pride and ego.
- Find out if the market currently favors big-cap or small-cap stocks.
- Do a post-analysis of all your buys and sells. Post on charts where you bought and sold. Evaluate and develop rules to correct your major mistakes. It's what you learn after you think you know what you're doing that's vital. That's how you improve your results.
For further information about this list, and the factors considered in comprising it, reference Investor's Business Daily.
