When I started to trade stocks back in '94-'95 I was urged to follow Cisco, Microsoft, Intel, and Dell because those were the most actively traded stocks. My "Watch List" has changed a bit over time with the addition of several Internet/Networking names, but through Boom and Bust it has remained remarkably the same over the last decade.

Richard Wyckoff wrote about the importance of trading only the most active stocks in his classic book, Studies in Tape Reading, which was published in 1913:

In Wyckoff's day the active, leading stocks were the railroads: Union Pacific, Reading, New York Central, etc. When we lived in Chicago we visited an old Montgomery Ward warehouse where the trains could drive directly inside. The tracks were still there but the trains don't come anymore: the place now houses a server farm. I thought there was something poetic about that conversion.

Here's the current list:

• Cisco Systems (CSCO)
• Juniper Networks (JNPR)
• JDS Uniphase (JDSU)
• Broadcom (BRCM)



• Microsoft (MSFT)
• Oracle (ORCL)
• Sun Microsystems (SUNW)
• Dell (DELL)



• Intel (INTC)
• Applied Materials (AMAT)
• KLA-Tencor (KLAC)
• Maxim Integrated (MXIM)
• Novellus (NVLS)
• Xilinx (XLNX)



• Nextel (NXTL)
• Qualcomm (QCOM)



• USA Interactive (USAI)
• Amazon.com (AMZN)
• Yahoo! (YHOO)



• Amgen (AMGN)

The Chairman at the end of a long day

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