Some people automatically sell the “winners”—stocks that go up—and hold on to their “losers”—stocks that go down-which is about as sensible as pulling out the flowers and watering the weeds. 

A better strategy, it seems to me, is to rotate in and out of stocks depending on what has happened...

• Don’t become so attached to a winner that complacency sets in and you stop monitoring the story.

• If a stock goes to zero, you lose just as much money whether you bought it at

$50, $25, $5, or $2—everything you invested.

• By careful pruning and rotation based on fundamentals...

Find stocks with the following characteristics: 

• price at 52wk highs or new all-time highs
• stock is trading above its 50day moving average and the 50day moving average is above the 200day moving average
• trends upwards after a earning report
• markets are up (usin...