TIMELESS RULES OF LONGER-TERM GROWTH STOCK  INVESTING

If you're a growth investor you should know that this is a treacherous game.
Although growth stocks can deliver powerful gains of 100% - 1,000% and more,
they also eventually lose over 70% of their value on average!

You need to know how to protect your gains or you could be crushed. The following
rules may be the most important stock market information you will ever read.
Print and commit them to memory.


# 1 - THE MOST IMPORTANT RULE
Sell immediately if your stock falls 7- 8% below your purchase price.
NO EXCUSES !

Don't even think about investing in growth stocks if you can't follow this rule.
We give you the proper stop loss target for each of our stock picks. We suggest entering an
automatic stop loss with each purchase unless you are a very experienced trader.


# 2 - YOU CAN "TIME" THE MARKETS
Hold stocks only when the overall trend of the market is up. It is very
hard to make money when the market is not acting well - so just get out.

We will teach you our proven market timing system that would have
kept you out of stocks during the 2000 "tech wreck" and the 1929 crash!

3 out of 4 stocks follow the general market trend!
You DO NOT  have to be in the market all the time.

" The stock market generally goes up 1/3 of the time, down 1/3
of the time, and sideways 1/3 of the time."--- Jesse Livermore
By reading our daily Market Updates you will always be "in tune" with the market.
By avoiding severe market downturns your investing results should materially improve.

 
# 3 - STOCKS MAKING "NEW HIGHS" TEND TO GO HIGHER!
In other words don't "buy low and sell high, buy high and sell higher."

This goes against our basic human nature. We tend to think if something is
selling at a lower price than before, it's a bargain. Not in the stock market.
"Bottom-fishing" is a sure way to lose money.
Our technical buy rules only lead us to the strongest stocks at or near new 52 week price highs.
Check out our latest stock picks.


# 4 - BUY ONLY THE BEST STOCKS IN THE TOP GROUPS
Concentrate on the top 2 or 3 stocks from the top Industry Groups.
“Best of breed” stocks will make you the most money. The group leaders
usually make the biggest moves, while the "also rans" barely budge.

“The key groups lead the market up and down” --- Jesse Livermore

 #6 - NEVER FOLLOW A STOCK TIP
Listen to the market and individual stocks - not the "experts" or your friends.
Our stock picking system is based on how the markets really work, not on rumors
or advice from the many TV, radio, internet, and newspaper pundits.
We use many of the same rules and principles developed by the world's greatest
traders. Rules that have stood the test of time. Very little changes in the stock
market over the years because basic human nature never changes.

#7 - “DEFENSE IS MOST of the GAME
Growth stocks typically correct 70% or more from their highs
and can devastate your portfolio.

“The leaders of the current bull market are typically
the losers of the next.” --- William J. O’Neil

You must learn and commit to memory solid sell rules to protect
your hard earned gains or they could be wiped out.
We have a dedicated an entire section of our training program to
market-tested sell rules that have stood the test of time.


#8 - NEVER BE SCARED OFF BY HIGH P/E's
If you are not willing to pay an average of 25 to 50 times earnings (or even much more)
for growth stocks, you automatically eliminate most of the past great investments
available like GOOGLE, APPLE, CISCO, etc.

The stock market is essentially an auction marketplace and stocks tend to generally
sell for about what they are worth. Hi P/E's show big demand for the stock.
We only look for the best quality stocks regardless of P/E's. Period.


# 9 - AVOID CHEAP STOCKS
Concentrate on stocks priced above $15.

Big institutions (mutual funds, banks, insurance companies, pension funds, and
hedge funds) control 80% of the buying, and most of them wouldn't even consider
buying a stock under $15 or $20, so why should you?

Obviously, stay far away from penny-stocks and stocks on the "pink sheets."
We base part of our stock selection on "institutional sponsorship." The stock
must be being bought by highly rated institutions for us to even consider it.


#10 - LEARN HOW TO TAKE A PROFIT
Most stocks run up 20-25%, then correct. Take some profits on most
stocks as soon as they run up this amount. Most people never learn
this and watch their gains disappear time after time.
We give you target prices with each stock pick to help you avoid this common mistake.

#11 - KNOW WHEN TO LET YOUR PROFITS RUN
If your stock runs up 20% or more in the first 3 weeks – try to hold for at
least 8 weeks (unless a major sell signal is triggered.) These stocks tend to
be your real winners capable of going up 50%-100%, 500% or more!

“It’s not the trading that makes you money in the
markets, it’s the sitting.” --- Jesse Livermore
You will need to master our sell rules to be able to maximize your gains.


#12 - DON'T OWN TOO MANY STOCKS
Experienced investors should hold no more than 6-8 stocks. When
you get aboard a big winner, you want it's performance to have
a big effect on your portfolio. Also, it's nearly impossible to follow
15 or 20 stocks properly.

Always sell your worst performing stocks and move the money into your
best ones. Your best performers should always be your biggest positions.
You will make your “big” money in just a few stocks in every bull market.

Many of the great investors start with 6 to 10 stocks and end up "force feeding"
their best stocks, ending up with 2 or 3. This kind of discipline is what can make
you rich in the stock market!
Our training shows you the optimal number of stocks to own for any size portfolio.