[mayoub]

1.Buy only when the stock market is trending higherForget about buying on weakness. A market downturn puts overwhelming pressure on stocks. More.2.Concentrate on strong industries and sectorsNearly half of a stock's advance can be tied to a move by its industry or sector. More.3.Look for strong profit growthSpecifically, look for quarterly earnings per share growth of at least 25% plus high annual EPS growth. More.4.Seek top fundamentalsBesides earnings, key factors to watch are sales growth, profit margins and return on equity. More.5.Watch for strong price actionA stock should be a leader in terms of price strength vs. the overall market. More.6.Prefer stocks at or near new price highsIn a healthy market, stocks at new highs tend to go even higher. More.7.Pick companies with new products or servicesGroundbreaking products or favorable changes in industry conditions are seeds of winning stocks. More.8.Watch for companies with increasing institutional sponsorshipNothing compares to the buying power of institutions. More.9.Avoid low-priced stocksQuality stocks trade at a premium. Stocks trading above $15 a share are preferable. More.10.Prefer companies with management ownership of stock