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Byline: DAVID SAITO-CHUNG
Some readers prefer to mix their own rules with IBD's system on how to buy, select and sell stocks. Doing so is unnecessary and in fact can lead to serious losses.
A big no-no: bottom-fishing for penny shares or other cheap stocks.
Of course, it can be thrilling to buy a stock at 50 cents a share and sell at $2 or $4. But few people can consistently succeed at such extreme bargain hunting. Top-notch value investors use a special set of skills to uncover such hidden treasures.
That's not IBD's goal. The proprietary ratings, screens, charts, features and ongoing education are designed to help you find the truly great growth stock, the one that leads a market rally with a big breakout and rises 100%, 200% or more.
To achieve more consistent results, focus on stocks that prove they have the potential to become long-term winners. These trade at a minimum of $10 a share.
The best stocks trade much higher than that when they begin their massive rallies. "IBD market studies have found that 97% of all the greatest Nasdaq stocks broke out of their initial sound chart patterns at prices of $15 or higher and NYSE stocks at $20 or higher," says "How to Make Money in Stocks Desk ...