Subscribe and you will get the spreadsheet that produces the direction and the buy & sell triggers for the stocks you choose.

Tuesday, December 16, 2014

TRADING RULES(and SOME RANDOM THOUGHTS)

1. I do not look at the stocks below 1bn in market cap. It is because bid/ask spread risk increases if you invest in stocks that have low activities. Stocks with smaller market caps tend to have low activities.

2. You stay with the trend until the direction changes. That means you will not confine the holding period to any number of days or obviously one day. Sometimes I do close a position in one day, not to capture profit, but to minimize losses. The average holding period is about a week or so. 

3. My algorithm is based on US stocks.

4. It does not work with day trading using high leverage. I do however trade using a margin account with 2:1 leverage.

5. You will not quadruple your money in a year. At least I don't know how to. The system you will be subscribing to will help you maximize profit while minimizing the risk as much as possible.

5.1 There are certain classes of stocks that I just cannot find a way to squeeze anything out of. However, I realize that the algorithm minimizes the losses even for those stocks.


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