Wednesday, April 11, 2012

Rules To Trade By

These are ground rules I trade by.

Risk Management
• Every trade gets a stop, 5% maximum loss total on any trade.
• Protect profits at all times. 
• Don't let a profitable trade turn into a loss... ever.
• Profits - Some of it is better than none of it. You'll never get all of it. 

• Buy at support.
• Don't buy or short on the 3rd day of a move.
• Be more patient, go for 10-30% profits rather than 2-5%

Seeking Opportunities
• Look for technical patterns and potential breakouts.
• Before a buy or short check conditions: Market > Sector > Stock

No comments:

Post a Comment