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Byline: MARIE BEERENS
IBD 100 stocks easily beat the broad market last year.
These top-rated companies combined for nearly an 18% gain, six times more than the S&P 500's 3%.
But capturing that outperformance in your own portfolio required disciplined trading. Blindly using the IBD 100 as a buy list could have led to big problems.
As always, combining strong fundamentals, proper buy and sell points, and keeping an eye on the general market's direction made all the difference in 2005.
Take Forward Industries. The maker of accessories for cell phones topped the IBD 100 in August and September. With its 99 EPS, 99 Relative Price Strength and 98 Composite Ratings, Forward may have appeared to be an ideal buy candidate.
But the stock did not offer a sound entry point while on the IBD 100. It had already rallied 540% since the beginning of the year to Aug. 1.