You’ve got a stock Portfolio! What’s next?

Create a Plan Put your strategy in writing, and stick to it. Are you bull, bear, cow, dog, chicken? Set goals When will you take profits? Sell? Buy? Hold? Do not fall in love with any stock. Trust none. Decide on a loss threshold When will you cut your losses. What percentage? Make it realistic. Not high; Not too low.. Focus on the specific stock. Holding can be good. Cutting losses can mean selling, but also buying more.

Diversify Select stocks from different industries, sectors: Technology Manufacturing Energy Health Agriculture Financial Entertainment Retail Clothing Understand patterns in each industry to maximize gains. Be willing to jump in/out quickly

Follow Your Investments Be aware of: Chart trends News reports Investor and analyst sentiment Earnings forecasts; Earnings reports Legal factors; Regulatory events Factors that impact future growth: Changes in management Future plans Competition Market responsiveness: Dow; S & P etc. Buyouts; Mergers Buy-Backs; Splits; Spin-offs; Takeovers

Perform Technical Analysis Do not be solely dependent on TA but, Be aware of: Support levels Resistance levels Breakouts Spikes +/- Patterns Moving averages Expecting that the future will be same as the past

Do Fundamental Analysis Learn how to read financial statements: Balance Sheets Cash & other assets; Liabilities; Equites Income Statement Revenues, Costs, Expenses Cash Flow Statements How cash is being earned and used Financial Ratios

Rebalance Periodically Asset Allocation Adjust for significant gains and losses across portfolio Don’t be a pig Considerations: Risk tolerance Tax implications Cash preservation Value preservation

Actively Manage Minimize losses: Stops Trailing stops Limits Profit taking Shorting House money strategy

Gain When Prices Drop Short selling Options Dollar-cost averaging Buy Puts Dollar-cost averaging