Ten Lessons from Success

 

 

Lesson 1:
Follow the Street's Lead

Trading in the wake of the big funds and using their momentum (after you've done your own homework) can be a winning strategy. More

 

Lesson 2:
Be Contrarian, but Still Make Money

Betting against the Street takes a thorough understanding of a stock's story and how money managers think. More

 

Lesson 3:
The Street's Never Bullish or Bearish Enough

There can be opportunity in taking your opinion to the extreme that an analyst won't. More

 

Lesson 4:
Don't Be a Snob

The Wall Street fat cats don't always spot (or believe in) lowbrow trends that can fuel successful companies. More

 

Lesson 5:
Pay Attention to Politics

The Street is too focused on money to spot the currents in government spending. More

 

Lesson 6:
Know the Rhythm to Undiscovered, Momentum Small-Caps

Undiscovered gems can be a great ride as they grow popular. Just be sure you get off at the right time. More

 

Lesson 7:
Use Tips as a Contraindicator

When you start getting nudges about a name, revisit your homework on the stock. More

 

Lesson 8:
Hype Plus Massive Short Interest Equals Sell

Sometimes more than just figures add up to a reason to exit a stock. More

 

Lesson 9:
Know How to Spot Downturns in Other Cycles

Learn how to spot a bad cycle and everything levered to it so you can get out in plenty of time. More

 

Lesson 10:
Look Out for Multiple Contraction

When growth stocks with high forward price-to-earnings ratios. More