RULES OF A TRADER:
1)Never allow a winner to become a loser, or a profit of at least 3/4 of a point get away from you...
Example: some people on this thread played EGAM recently..They watched the stock go up from 3.00 to 6.00...Question is, did you ride it up and then ride it down..Never let that happen...How to avoid, follow your winners with trailing stops..You can set them under the intraday low, or you can determine some % figure, I many times trail a stock with a 3-5% trailing stop..If I get taken out, I get taken out..So what..
2)Never hold a losing position overnight...Sometimes I have bought a stock toward the close, thinking I could play the gap the next morning..But the stock moves down and does not close near the day high..It is going to close lower than I bought it...Reaction, I sell and take minimal losses...If I miss the gap up so what, better to keep my losses minimal than experience a gap down...
3)Always set a protective stop immediately after you enter a position..You must determine the figure...Many times, I will put mine, 3 to 5% below entry..
4)At 10:00 A.M. plot the intraday high and low of the Nasdaq gainers, as well as any of the stocks on your watch list...It is important to watch the stocks on your real-time system at both ends of these trading bands...I look for large volume on Nasdaq gainers, then download data on ones that are flashing wildly, and do a TA study on them..I have to see where the overhead is, plot the pattern, so I know if the stock has continued firepower or not....
5)Take material from Jeff Cooper and Larry Connors and commit it to memory...Talk to the wall...These guys, IMHO, are the best traders in the country...I will be out walking my dog, and say,(sounds crazy), "Sassy, tonight we will discuss the Non-ADX 1,2,3,4", Sassy, listen up,
A)Stock has three lower lows or two lower lows and an inside day..
Inside day is a lower high and a higher low..Or you can focus on three lower lows with the close...
B)ADX less than 30
C)stock is above 50 day moving average
D)watch for potential buy above yesterday's high...
5)Be your own trader..don't follow anyone..never buy on a tip from a friend...I will only buy a stock if it fits my TA guidelines..Granted sometimes my friends have good picks, that do fit my guidelines, but on Silicon, I have learned to trust very few people..This place is loaded with stock promoters, investment newsletter people, seminar salesman,brokers, and general hypsters...They all have a vested interest in what they promote..With me, I trade because I love to trade...I have a full-time job outside the market..
There is a lot more to be said, but I have to give dog morning walk and take daughter to school at 7:30...Have a good trading day...
Out of your picks, I will watch ZOMX...
Mark |
