By Lita Epstein, Grayson D. Roze

Part of Trading For Dummies Cheat Sheet

In a bull market, when investor confidence is high, the sound approach to trading is to look to buy fundamentally strong companies with the following characteristics:

  • With earnings that are growing faster than average

  • In a strong sector

  • In a growing economy

  • While the stock is approaching a technical buy signal on its bar chart and performing better than the average stock with high relative strength