The Trading Plan

Yes gang .. It's lock and load time! Time to search for your first great low-
price stock. Before we take aim and pull the trigger on some poor little
unsuspecting stock, we need to be sure to stick to our game plan. This
always includes doing all of our research before we buy anything.

The major risk (in buying stocks) comes in not doing all of your research
before investing your money. This is a very true statement. Don't ever
forget it. The amount of time it takes to check out the stocks you want to
buy, will be time well spent.

As we said at the outset, we'll be focusing on stocks that trade in the five
dollar or less range. We'll be looking at stocks that meet the fundamental
requirements that are necessary to sustain solid and steady growth well
into the future. This is a wise course even for short term trading.

We're looking for stocks that have a verifiable trading history, good sales
or earnings, good management, and great products. If these stocks have a price history of cycling up and down off a 52 week low base, then that's just icing on the cake. We'll take a big slice.

Many low-price stocks exhibit all the good traits and solid fundamentals
needed to sustain solid and steady growth, yet they never seem to move
out of that up and down cyclical price range. Well guess what? That's just
great! We'll buy in at the 52 week low and sell out near the top.

You also want to focus on low-price stocks that have new product lines, new technology, new management teams with great track records, and
any other news that might send the stock to new highs. Once a major
brokerage recommends these stocks a buying frenzy moves the price up.

Once you start receiving your monthly newsletter, you'll have plenty of
stocks from which to make a choice. Always do your fundamental analysis
for each stock you consider buying. You can use your technical analysis
software to do basic price and volume charting for back-up support.

Always read the company's annual report before you make your final
decision on buying any stock. This is "must do" work for each stock.