Don't ever buy a stock without first examining its financial health. You are going to learn how to do this.
Don't ever buy a stock without first learning about its business and who its competition is. You want to focus on the leaders in an industry.
Buy when market indexes are in an up-trend.
Buy the top companies of industries or market sectors with many stocks hitting new highs.
Buy companies with new products or services that are expanding (profitably), especially young companies.
Determine if large or small-cap stocks are favored in the current market.
Pick companies with high management ownership.
Quarterly earnings should be up at least 25% in each of the past three quarters.
Earnings should be up at least 25% in each of the last three years, or at least 40% for the past two years.
If sales are not increasing by at least 10% in each of the past three quarters over the same quarters in the prior year, pass on it.
Always average up with your winners ?let your winners run.
Never average down ?get out of the stock if it goes against you.
via atozinvestments