I didn’t receive them from on top of Mount Sinai, but these 10 growth stock commandments are strict growth investing guidelines I try to adhere to—and advise my readers to do the same. Stick to these principles, and you should maximize your profits, limit your losses, and be able to identify the very best growths stocks the market has to offer.
Without further ado…
The Ten Growth Stock Commandments
- Thou Shalt Buy Stocks in Uptrends
- Thou Shalt Demand Strength in Story, Numbers and Chart (SNaC, for short)
- Thou Shalt Let Thy Winners Run
- Thou Shalt Cut Thy Losers Short
- Thou Shalt Follow the Trend of the Market
- Thou Shalt Not Panic in the Time of the Bear Nor Turn Giddy in the Time of the Bull
- Verily Thou Shalt Have A Plan
- Always Shalt Thou Remember That the Market Wants To Take Thy Money
- Thou Shalt Practice Patience, As the Big Money Is In the Big Swings
- Thou Shalt Be An Optimist
Meanwhile, consider the virtuous growth investor…
- For he doth not dabble in swing trading, neither doth he day trade, but rather constructeth he a concentrated portfolio composed of equal-dollar positions unto the number of 10.
- For he seeketh diligently for stocks whose uptrend is strong, whose stocks are as liquid as the river and whose price, while not above rubies, is certainly above $10 per share.
- For he placeth not hard stops upon his holdings, for he knoweth that the market will stop him out, and, having done so, resume its uptrend.
- For he trusteth not the tipster who tempteth upon the intertubes, neither doth he take a flyer on the penny stock that will empty his purse and leave him lying at the roadside bleeding from the ears.
- For in all things trusteth he above all The Chart, from which no secrets are hid.