Trading Rules
Posted on May 21, 2008 at 4:34 pm
Every active trader has a set of trading rules they follow to not only keep themselves consistent, but also disciplined.
It is critical to follow your trading rules and to be continuously updating them as you go along. For those who do not know me this page will explain not only my style of trading but also my rules.
Investor Classification: Short Term Momentum Trader
Typical Outlook: Less then a week
Industry Focus: Whatever is in trend
General Buy Rules
- Have a target purchase price (TPP) of where you want to buy into the stock.
- Use limit orders or stop limit orders only to purchase.
- After purchase setup 2% stop loss immediately to limit downside.
- Market and/or Industry Group must be in general uptrend to go long (use moving averages to monitor), and a general downtrend to go short.
- Take screenshot of stock chart at time of purchase - Archive with others for future reference.
General Sell Rules
- Have a target sell price (TSP) of where you want to sell the stock. Also define in advance key technical resistance areas in way of TSP. Typical TSP should be initially 10%.
- Sell only using limit orders.
- Don’t hesitate to take profits for it is simply said, “winning is winning”.
- Don’t celebrate until you’ve sold - If you can don’t celebrate at all.
- Take screenshot of stock chart at time of sale - Archive with others for future reference.
About Me
See about Blain Reinkensmeyer.
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[...] My Rules [...]
good idea with the screenshots. i always look back and forgot why i was thinking about trading and the screenshots should solve that
They are a must! Great for doing research and tweaking your strategy.
[...] Trading Rules [...]
[...] Trading Rules [...]
[...] Trading Rules [...]
Cool info Blain