MY FIRST LOSS BAUER AG

I made my first loss with BAUER AG (WKN 516810). I had to make more economic reasoning to understand why the markets are going down. I think the markets will go up again but I already sold my BAUER AG Stocks.

MY FIRST LOSS BAUER AG

I made my first loss with BAUER AG (WKN 516810). I had to make more economic reasoning to understand why the markets are going down. I think the markets will go up again but I already sold my BAUER AG Stocks.

when to sell a stock?

It is as much important as to know when to sell a stock as to buy. There are the following 3 CANSLIM methods that you can flow when selling a stock.

1. Always sell when to stock falls 8% of its cost
2. In a market downtrend, reduce your holdings
3. Take profits when the stock is 20%-25% up.
   

when to sell a stock?

It is as much important as to know when to sell a stock as to buy. There are the following 3 CANSLIM methods that you can flow when selling a stock.

1. Always sell when to stock falls 8% of its cost
2. In a market downtrend, reduce your holdings
3. Take profits when the stock is 20%-25% up.
   

CANSLIM investing

I am currently reading a book about CANSLIM investing. This method is good for beginnners.
I found another usefull checklist for the beginners at the investors.com website which I also found in the CANSLIM investing book. You can also watch the CANSLIM investing video.

1. Consider buying stocks with each of the last three years' earnings up 25%+, return on equity of 17%+ and recent earnings and sales accelerating.

2. Recent quarterly earnings and sales should be up 25% or more.

3. Avoid cheap stocks. Buy higher quality stocks selling $15 a share and higher.

11. Buy mostly in the top six broad industry sectors in IBD’s New High List.

12. Select stocks with increasing institutional sponsorship in recent quarters.

13. Current quarterly after-tax profit margins should be improving, near their peak and among the best in the stock's industry

14. Don’t buy because of dividends or P-E ratios.

15. Pick companies with a superior new product or service.

16. Invest mainly in entrepreneurial New America companies. Pay close attention to those with an IPO in the past 8 years.

17. Check into companies buying back 5% to 10% of their stock and those with new management.

18. Don’t try to bottom guess or buy on the way down. Never argue with the market. Forget your pride and ego.

19. Find out if the market currently favors big-cap or small-cap stocks.

20. Do a post-analysis of all your buys and sells. Post on charts where you bought and sold each stock. Evaluate and develop rules to correct your major past mistakes.

CANSLIM investing

I am currently reading a book about CANSLIM investing. This method is good for beginnners.
I found another usefull checklist for the beginners at the investors.com website which I also found in the CANSLIM investing book. You can also watch the CANSLIM investing video.

1. Consider buying stocks with each of the last three years' earnings up 25%+, return on equity of 17%+ and recent earnings and sales accelerating.

2. Recent quarterly earnings and sales should be up 25% or more.

3. Avoid cheap stocks. Buy higher quality stocks selling $15 a share and higher.

11. Buy mostly in the top six broad industry sectors in IBD’s New High List.

12. Select stocks with increasing institutional sponsorship in recent quarters.

13. Current quarterly after-tax profit margins should be improving, near their peak and among the best in the stock's industry

14. Don’t buy because of dividends or P-E ratios.

15. Pick companies with a superior new product or service.

16. Invest mainly in entrepreneurial New America companies. Pay close attention to those with an IPO in the past 8 years.

17. Check into companies buying back 5% to 10% of their stock and those with new management.

18. Don’t try to bottom guess or buy on the way down. Never argue with the market. Forget your pride and ego.

19. Find out if the market currently favors big-cap or small-cap stocks.

20. Do a post-analysis of all your buys and sells. Post on charts where you bought and sold each stock. Evaluate and develop rules to correct your major past mistakes.

Investor's Checklist: Rules for successful stock investing

I am reading The Five Rules for Successful Stock Investing: Morningstar's Guide to Building Wealth and Winning...By Pat Dorsey at the moment. I found the following checklist on the page 11.

1. Have a personal discipline, do not listen crowds. It is therefore crucial to have solid well-grounded investment philosopy.
2. Do not buy a stock unless you understand their business.
3. Look for companies with compatitive advantage.
4. Do not buy a stock without a margin of safety.
5. Buy and hold stocks for the long term.
6. Know when to sell. For example sell when it exceeds its instrinsic value.