After getting the list of stocks that meet your individual parameters, click on Analyze these stocks and check all of the additional information that is provided. Also type in the symbol for the stocks selected in the Yahoo field at the top of the page, and review the chart, additional data and news for these companies. Monitor the stocks for several weeks or months to make sure these stocks are performing to your expectations. Then commit funds. We would expect better returns if we tightened up the parameters and monitored the stocks over a period of time before committing funds, as suggested above.
Most investors have a hard time getting out of a stock.
The feeling is that it will come back and so it is best to hang on. There are also instances where an investor will hold onto a stock too long, even though it has gone up. In these cases, the stock price may have reached a plateau or is starting to trend down. Because of this, it is very important that the investor set two limits at the time of purchase of a stock. This is a number that if the stock price drops to that level, the stock will be sold and the investor will accept the loss.