Don't Buy On IBD Ratings Alone, Use Charts To Time Your Trades.(B)(INVESTOR'S CORNER)

Byline: CHRISTINA WISE

A key part of successful investing involves sifting through the thousands of stocks on the market to zero in on the winners.

IBD's stock ratings simplify that process. They show you how a firm's earnings, sales, profit margins and other fundamental characteristics stack up against the competition. There are also ratings that gauge a firm's industry group and price appreciation compared to other stocks in the market.

Though powerful, the ratings are just one piece of equipment in your investment toolbox.

They can help you filter down thousands of stocks to the 40 or so you might be interested in. But by themselves, they won't tell you when to get into or out of a stock. Nor will they tell you if the stock's nearing the end of its run and it's time to bail out. They offer few clues about the stage of the overall market cycle. To gain this knowledge, you have to look at a stock's price and volume charts, as well as those of the major indexes.

Weekly charts for leading stocks appear throughout IBD's paper edition. The investors.com Web site also has daily and weekly charts to help you follow a stock's price and volume action.

IBD research has shown ...