Skip to main content

Improve Your Trading with These 20 Rules

Improve your trading with these 20 Golden Rules. But treat these rules as guides; with markets, there is no sure thing. But these will enhance your odds.
  • Forget the news, remember the chart. You're not smart enough to know how news will affect price. The chart already knows the news is coming.
  • Buy the first pullback from a new high. Sell the first pullback from a new low. There's always a crowd that missed the first boat.
  • Buy at support, sell at resistance. Everyone sees the same thing and they're all just waiting to jump in the pool.
  • Short rallies not selloffs. When markets drop, shorts finally turn a profit and get ready to cover.
  • Don't buy up into a major moving average or sell down into one. See #3.
  • Don't chase momentum if you can't find the exit. Assume the market will reverse the minute you get in. If it's a long way to the door, you're in big trouble.
  • Exhaustion gaps get filled. Breakaway and continuation gaps don't. The old traders' wisdom is a lie. Trade in the direction of gap support whenever you can
  • Trends test the point of last support/resistance. Enter here even if it hurts.
  • Trade with the TICK not against it. Don't be a hero. Go with the money flow.
  • If you have to look, it isn't there. Forget your college degree and trust your instincts.
  • Sell the second high, buy the second low. After sharp pullbacks, the first test of any high or low always runs into resistance. Look for the break on the third or fourth try.

  • The trend is your friend in the last hour. As (if) volume cranks up at 2:00 pm don't expect anyone to change the channel
  • Avoid the open. They see YOU coming sucker. I like to wait 30 minutes.
  • 1-2-3-Drop-Up. Look for downtrends to reverse after a top, two lower highs and a double bottom.
  • Bulls live above the 200 day, bears live below. Sellers eat up rallies below this key moving average line and buyers to come to the rescue above it.
  • Price has memory. What did price do the last time it hit a certain level? Chances are it will do it again. But not forever
  • Big volume kills moves. Climax blow-offs take both buyers and sellers out of the market and lead to sideways action.
  • Trends never turn on a dime. Reversals build slowly. The first sharp dip always finds buyers and the first sharp rise always finds sellers.
  • Bottoms take longer to form than tops. Fear acts more quickly than greed and causes stocks to drop from their own weight
  • Beat the crowd in and out the door. You have to take their money before they take yours, period.

Comments

Popular posts from this blog

California: A Model for the Rest of the Country, Part 2

Part 1 here . On Leaving the Golden State Guest Post by NicklethroweR . Posted on the Burning Platform. The fabled Ventura Highway is all that separates my artist loft from the beach where surfing first came to the United States. Both my balcony and front patio face the freeway at about eye level and I could easily smack a tennis ball right on to the ever busy 101. Access to the beach and boardwalk is very important to a Tourist Town such as mine and I can see one underpass from my balcony and another underpass from the patio. Further up the street are two pedestrian bridges. Both have been recently remodeled so that people can not use it to kill themselves by leaping down into traffic. The traffic, just like the spice, must flow and the elites that live here do not like to be inconvenienced as they dart about between Malibu and Santa Barbara. Another feature of living where I live would have to be the homeless, the insane and the drug addicts that wander this particular...

Top Five Consumer Cyber Security FAQs

Business, technology, environmental and economic changes are a part of life, and they are coming faster all the time. All of these changes and advancements can be distracting and make us more vulnerable to cyber scams. That's why protecting your credit is a critical part of protecting yourself from cyber security threats. Security researchers have reported that hackers and scammers are using any opportunity or vulnerability to target both individuals and companies. You may have already seen these attempts in the form of fake emails or calls. Here are the top five questions Equifax ®  has received about how individuals can protect themselves from cyber security threats and help to improve your credit protection. 1. How can I better protect my credit? Check your credit reports frequently. You can get free credit reports from the nationwide credit reporting agencies (Equifax, Experian ®  and TransUnion ® ) at annualcreditreport.com. Check your credit reports frequently to closely...

School Choice Passed by Texas Senate

The Texas Senate on Thursday approved a $500 million school choice bill mostly along party lines after hours of passionate debate. It will now head for consideration in the House, where members rejected similar proposals during the regular session. Senators passed Senate Bill 1 by a 18-13 vote, with one Republican joining all Democrats in voting against the measure. The bill will likely face steep resistance in the House, where Democratic members and many rural Republicans have vehemently opposed such proposals. School choice programs, also called education savings accounts or vouchers, use public money to help pay for a child’s private schooling. “We must recognize that a one-size-fits-all approach doesn't fit the needs of our diverse student population,” said Sen. Brandon Creighton, R-Conroe, who authored SB 1 and estimated the proposal could serve about 60,000 students. Texas has about 5.5 million children in public schools. Public schools have failed the American people, especi...