Here are the rules I will try to follow during my weekly tradings.
Each rule is born after errors, missed gains or big losses, and the only goal is to try to avoid errors of the past to happen again in the future.
Whenever a rule born, I open a post to explain why I need that rule and what happened when I did not apply such a rule.
This is the current list :
When To Buy
Rule : Always pick stocks with good fundamentals
Rule : When you enter, always check for a close stop loss. If none, don't buy.
Rule : Never sell/buy during the day. I should not even check stocks on daily fluctuations. Just do it about 15 minutes before the closing time.
Rule : Always be sure of which kind of current trend you are in.
Rule : If there is downtrend, short. Is there is uptrend, go long. Never bet against the market. You can win today but you will loose at the end of the week.
When To Sell
Rule : Always wait the end of the day to close a position and that the break out is confirmed with end of day price.
Rule : Never sell/buy during the day. I should not even check stocks on daily fluctuations. Just do it about 15 minutes before the closing time.
Rule : When target price is reached, is time to sell...
Rule : when the target price is reached, usually the price start to fluctuate around that price for a while.
Rule : Always sell when the target price is reached. Do not waste time nor money betting on what will happen tomorrow
Some Definitions :
Short Term Trend , I mean a trend of the last 7 / 15 days
Mid Term Trend, I mean a trend of the last 30/60 days
Long Term Trend, I mean bigger trends.
The Benchmark is the S&P 500
Other Definitions :
Trading Range
Break-Out
Moving Average
Price to Earnings (P/E) ratio
GAP
Each rule is born after errors, missed gains or big losses, and the only goal is to try to avoid errors of the past to happen again in the future.
Whenever a rule born, I open a post to explain why I need that rule and what happened when I did not apply such a rule.
This is the current list :
When To Buy
Rule : Always pick stocks with good fundamentals
Rule : When you enter, always check for a close stop loss. If none, don't buy.
Rule : Never sell/buy during the day. I should not even check stocks on daily fluctuations. Just do it about 15 minutes before the closing time.
Rule : Always be sure of which kind of current trend you are in.
Rule : If there is downtrend, short. Is there is uptrend, go long. Never bet against the market. You can win today but you will loose at the end of the week.
When To Sell
Rule : Always wait the end of the day to close a position and that the break out is confirmed with end of day price.
Rule : Never sell/buy during the day. I should not even check stocks on daily fluctuations. Just do it about 15 minutes before the closing time.
Rule : When target price is reached, is time to sell...
Rule : when the target price is reached, usually the price start to fluctuate around that price for a while.
Rule : Always sell when the target price is reached. Do not waste time nor money betting on what will happen tomorrow
Some Definitions :
Short Term Trend , I mean a trend of the last 7 / 15 days
Mid Term Trend, I mean a trend of the last 30/60 days
Long Term Trend, I mean bigger trends.
The Benchmark is the S&P 500
Other Definitions :
Trading Range
Break-Out
Moving Average
Price to Earnings (P/E) ratio
GAP
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