Most profits are made in active fast markets. Keep out of slow trading markets or watch until you get a definite indication of a change in trend.
The best way to make money is to take higher price stocks and buy them after they have broken into new high ground. Buying low price stocks often ties up capital for a long period of time and may take 5 or 10 years to either advance ot decline.
For stocks to show up-trend and continue to advance they must make higher bottoms and higher tops. When the trend is down they must make lower tops and lower bottoms and continue on down to lower levels.
You should have a weekly high and low chart running back 2-3 years, a monthly high & low chart that run back at least 10 years, and a yearly high and low chart, running back 5, 10 or 20 years. When stocks are very active you should have a daily high & low chart for a few months.
You will always make money by following main trend of stocks up or down. Stocks are never too high to buy as long as the trend is up and they are never too low to sell as long as the trend is down. Never sell short just because the stock is high or because you think its too high. Never sell out and take profits just because the price is high. Buy & sell according to definite rules and not on hope, fear or guesswork. Never buy a stock just because the stock is low. There is usually a good reason its low and it can go lower
You must always use a STOP LOSS to protect your capital. A small loss or several small losses can easily be made back with one large profit but when you let large losses run against you its hard to make them back.
Prove all things and hold fast to that which is good.
After stocks have a prolonged advance and wind up with a fast, active, runaway market in most cases they come down very quickly and much faster in a shorter period of time they they go up.
Get out of the market quickly as soon as you see that you have made a mistake.
When you make a trade, never risk more than 10% of your capital you have to trade with.
The best buying price is when the price declines to 50% of highest price the stock has ever sold. Next strongest is when price is 50% between extreme low & extreme high.
Stops must be above old tops or below old bottoms on a weekly or monthly chart. You must place STOP LOSS orders below the lows of swings and not just below the lows on the daily chart.