Here is the 3-step process I use to sell stocks:
- When a Summary changes from On Sale to Watch or Overpriced. This tells me the financials are getting weaker.
- When a 4M score drops close to 59 or lower. This tells me the overall business is getting weaker.
- When you make a profit. In other words, I only sell when I make a profit.
Remember Rule #1 Investing:
- Rule #1, don’t lose money.
- Rule #2, don’t forget Rule #1.
Remember the 4Ms:
- MOS: The business continues to increase profits.
- Meaning: The business has multiple scalable revenue streams.
- Moat: The business has a strong competitive advantage against other companies in the same sector and industry.
- Management: The business is led by a CEO with a track record of building businesses and increasing share prices.
Disclaimer: This is not financial advice. You alone have the authority to determine if a stock is suitable for you, and you accept responsibility for any trades you make at your brokerage using the tools provided by us or our partners.