Billion Dollar Baby, page-58

Buying high and selling much higher is where the big money is to be made. I like to buy stocks trading at new 6 or 12 month highs. Note that NEA today traded at a new 12 month high [1].

Buying into stocks trading at new 6 month and 12 month lows is fraught with danger that will ultimately lead to a trading account blowing up. This is especially true when buying into weak stocks with leverage. When a stock is trading at an unusually low price, this is because almost nobody wants to own it. The new 52-week low list is the junk pile.

Conversely, winners buy high and sell much higher. They chase stocks that almost everyone would like to own.

Portfolio: AX1, ALU, AWC, BPT, BVS, JIN, NEA, NHC, NST, RRL, RMD, WSA.

1. http://clients.weblink.com.au/clients/equitiesinfo/