companies to avoid which ones, page-25

Avoid buying companies in downtrends.

Buy 10 stocks, put stoplosses on them, if they drop by say 15%, sell. If they go up by 20% put more money on them. If they go up another 30% put more money on. When the price is double, take the first lot of shares out. Buy shares that are liquid. Put your big wins into some real estate and diversify.

A stock will do three things, it will drop in price, it will stay the same or it will go up. Plan for each of these when you buy in.

Actually it can do four things, go into suspension. Just ask any NKP holder. Don't have too much on any one stock. I aim for max of 10% on a company. Wonder how the Pike River shares are doing right now?

You have to cop a few losses to become keen in your stock selection.