Fundamental Analysis and Position Trading: Evolution of a Trader

CHAPTER 23

What We Learned

This book focused on buy and hold (value investing) and position trading. Those two styles are complementary since knowing when to exit a long-term holding is often the key to making and keeping money when investing in the stock market.

This chapter lists all of the discoveries I shared with you in these pages, sorted by chapter.

CHAPTER 2: STOCK SELECTION

See this chapter's introduction for criteria I use to select stocks.

Stocks that double substantially outperform the following year 53 percent of the time. See the section “What Comes After Large Price Moves?”

Stocks that drop 50 percent or more outperform the following year 68 percent of the time. See the section “What Comes After Large Price Moves?”

Stocks that drop most in a bear market bounce higher one year after the bear market ends. Stocks that drop least perform worse. See Table 2.1

Pick stocks of companies that you know and like. See the section “Stock Selection the Easy Way.”

Check for poor ...