This is a book about trading, not buy and hold. Forget
fundamental analysis, this is all technical.
The book has good insights, but you have to be interested in trading.
Pick an up-trending stock using candle sticks, and position of
price relative to the exponential moving average. (above the
Pick an initial stop loss position, say 3x average trading range (ATR) on a weekly chart.
Pick the number that is 2% of your portfolio. 2% = (buy price - initial stop loss) x number of shares. (#shares = 2%/(buy-stop loss)).
As share goes up, reset the stop loss 3xATR below share price (I
think) - Refer to Nicholson here I think.