So we finally get to the point of picking and buying a good stock.  How do we do that?

First, start by reading your newsletter(s).  Read a story and see if it makes sense to you.  Does it seem this stock has a good reason to go up?  Are you pretty enthused by the stock – maybe even a bit excited?

That’s good.  This may be one you want to invest in.  If the story doesn’t move you, then just walk away from it.  You don’t have to invest in it.  There is no rush to put on a trade.

But if you like the story and have real enthusiasm for it, that’s very good.  Because this enthusiasm will carry you through some of the times when it is down—and all stocks go up and down.

Now we get to the recommendation.  Here’s what it should look. like.

Buy SprintFast NYSE:S up to $5 a share and use a 25% trailing stop.

Now take all of that enthusiasm and set it aside.  We are going into the tough minded buying mindset—what I like to call the “Warren Buffett mindset.”

This means we are not going to pay one more penny over $5 for this stock, no matter how much we like it.  If the market price right now is $5.50, we are going to make the market come to us.  And if it doesn’t—WE DON’T CARE!  We won’t buy the stock.

You see, Warren Buffett isn’t desperate or eager.  He doesn’t have to be — he has his billions.  So he picks and chooses what will be a good deal for him and makes the market come to him — if not, he doesn’t buy.

He knows that buying stocks at a low price GREATLY increases your odds of success and lowers your risk.

Think about it this way.  If you just had one little stock idea, and that’s all you had in the world, you’d be in a mindset to buy—maybe at any price.  And that’s a recipe for failure.

But you’re in a much better position now because you  have a steady stream of great, well-researched stock ideas at low prices coming your way every month in your newsletters.

No need to be desperate.  Just like catching the bus—if you miss this one, another one will be along in a few minutes.  No worries.  You don’t care.

Also, you’ve paid for the research which tells you what the maximum price should be.  So if you’re paying for the research, it’s good to use it correctly, right?  So don’t buy over the “buy up to” price on any of your stocks.

Put on a billionaire’s “don’t care — make it come to me” attitude.  Now that you’ve got the right attitude, it’s time to go place an order for your stock pick.  Notice I didn’t say buy.  We don’t care if we buy or not.  We’re just going to put the order out there at the right price and see if the market will come to us — on our terms.

By the way, I realize this “buying attitude thing” is simple, but it “ain’t easy.”  But you’ll want to get used to it because I carry it to the EXTREME in the next book, Beyond Stock Investing For Beginners.

It is one of the most critical factors for your success.