1. Find individual stocks that are the best patterns. Find optimal entry. Set buy order. Find exit. Set sell order. 5-15% moves.
2. At all costs, avoid shorting bull markets, except as a hedge, with a small position.
3. At all costs, avoid going long bear markets; same rules as #2.
4. Avoid shorting or going long indices. Find individual equities in pullbacks from the major trend. Remember, in a bull, individual equities (and even sectors) may double or triple while the overall index moves up by 10%. Don't be afraid of the work. If you can't find individual equities to go long/short, that means you shouldn't go long/short. Maybe the trend is changing or there will be a reversal soon.
5. Maintain 2-4 different positions. Don't put all capital into one position. This enables you to move on from one losing position. Always be looking for other positions; other equities.
6. Always know the exit point -- or where you will exit this trade if things don't work out.
7. Plan to make money in the long-term. No doubling in two weeks.
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