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
line).
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.