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

2. 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.

3. 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

4. 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

5. 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

6. 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

7. 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

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

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