TheRumpledOne
6,407 posts
msg #28096
- Ignore TheRumpledOne |
8/27/2003 9:23:30 AM
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TRADING TACTICS as of JULY 02, 2003
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ENTRY
- Only trade from list, lower Linear Regression (LR) bounce. RSI(10)<20% or news driven
- Look for POSITIVE DIVERGENCE
- Must be BELOW upper Bollinger Band on Daily Chart
- Look for stocks near the lower Linear Regression on 5 day intraday and/or daily chart
- Daytraders wait for 1, 2 or 3 green/white candles in a row after RSI(10)<20%
HOLD
- If goes up and passes breakeven, 1%, 2%
- Wait for RSI and/or LR to peak
- For lower LR bounce set at .01 above breakeven, 1%, 2% then wait...
EXIT
- Set STOP LOSS LIMIT ORDER
- Set above BREAKEVEN
- NEVER lose a ZERO or FIVE - capture profit/prevent loss (daytraders)
- SELL at UPPER LR or RSI >90% - don't be greedy or SELL when the green/white candles turn red/black.
STOCKS TO TRADE
- Entry at RSI < 3% on Daily Table/Chart
- Exit at RSI > 90% on Daily Table/Chart
FOCUS ON % NOT $... THE $ WILL COME!!
STOCKS TO KEEP IN PORTFOLIO
- Load the Lower/Upper LR levels in your alerts first thing in the morning
- SELL/BUY back to gain shares
- Switch OUT when at UPPER LR on Daily Chart
- Look to reenter at 13/26 ema or Lower BB/Lin Reg on Daily Chart
Many have asked about what STOP LIMIT they should use. Backtesting has found that a 15% trailing stop works the best. THIS IS FOR SWING TRADERS ONLY… DAYTRADERS TAKE YOUR PROFITS ACCORDING TO ABOVE.
Example.
Buy at $1.00 per share.
Stop Limit set at $.85.
If stocks drops to .85 you get stopped out.
If stock goes up, move the stop limit order up. If stock reaches $1.20, set the stop limit to $1.02. If stock reaches $1.50 set the stop limit to $1.27. If the stock goes to $2.00, the stop limit would be $1.70.
DISCLAIMER
We are not liable for any investment decisions by the reader. The information offered is not to be construed as an offer to buy or sell any securities. All information obtained is from sources deemed to be reliable but is not guaranteed. Information for the stock observations was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the stock observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein.
We are not brokers. NO advice is given or implied. This information is for educational purposes ONLY. Nothing should be considered a recommendation to buy or sell any stock or security. We strongly recommend that you consult with a professional broker or financial planner before you buy or sell any stock or security. We believe the information in this publication to be true but assume no responsibility for any incorrect information. This is not a solicitation to buy or sell any security. The author may at times hold positions in any of the stocks mentioned in this document. Investing in securities carries a high degree of risk and you can lose all of your investment money. Past performances do not guarantee future results. Please consult with your own independent tax, business and financial advisors with respect to any investment, including any contemplated investment in any company mentioned. All information contained in this publication must be independently investigated for accuracy. We will NOT be responsible for the consequences of anyone acting on this purely educational material.
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