CHAPTER 5

TRADING WITH THE TREND

I don’t set trends. I just find out what they are and exploit them.

Dick Clark

MY SUCCESS AS A STOCK TRADER relies on a combination of science and art. Mechanical signals backed by scientific research and intuitive feel are both important tools. In the stock market, few things are purely black or white. To succeed, an astute stock trader must learn to read between the lines and decipher and make decisions often on the basis of incomplete information. There are, however, certain characteristics that are not ambiguous or even open for interpretation. I call them nonnegotiable criteria.

When I am screening for superperformance stocks, my initial filter is rooted in strict qualifying criteria that are based purely ...

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