Free Investing Tips
These are some of my Option Stock Trading Rules that I follow religiously. I think you should too.
1- Never, ever, ever, ever try to catch a falling knife. Never, ever, ever, ever try to catch a falling knife. When a stock is trading lower, Do Not buy thinking it will bounce right back after you buy. The equity may keep falling a lot more than you think and you will have to double, triple or quadruple down to just to get back to the break-even point.
2- Never, ever, ever, ever try to go against the overall market. Never, ever, ever, ever try to go against the overall market. Vivid example is today's market. So many people tried to go against the market trying to predict a bottom and got hurt pretty bad. When in doubt, follow the trend lines to see where the market is heading before you take a position.
3- Always set trailing stops for winning trades. Always set trailing stops for winning trades. Especially, when the trade jumps in its first few days after getting filled. Set a trailing stop for 10%. Which means, if the option goes down in price by 10%, then you are automatically out. You can set the trailing stop at whatever you are comfortable with but just keep in mind that however easy you make the $$, you can easily lose $$ too.
4- Always set stops for initial entries. Always set stops for initial entries. After you get filled, set your stop loss at a target you are comfortable with. Simple but not followed by a lot of traders. Trades will go awry. You don't want to lose a lot of money and have none to get back in the game the next day. Take it from me! I lost a lot of money not setting stops. I don't want you to make the same mistake I made.
5- Always keep an eye on the overall market for signs of strength or weakness. Always keep an eye on the overall market for signs of strength or weakness. There is an all adage in Wall Street "The Trend Is Your Friend". It can't be any more true when the market is heading up, buy calls on securities that have shown strength. If the market is going down, buy puts on the securities that have performed the worst in the up market.
6- Never try to predict a bottom. Never try to predict a bottom. So many great investors just recently tried to call in a bottom and lost Billions. Try not be a hero. There will always be opportunities to chose from.
7- Never try to predict a top. Just when you sell thinking the top had been reached, securities can keep going up! You try to get back in thinking you have missed on the upside opportunity and the bottom falls off. Keep your eyes on the signals (Candlesticks, western, sentiment, news...)
8- Always use candlesticks for confirmation.
9- Always use support and resistance points.
10- Always use trend lines.
11- If an equity gaps up and consolidates without trading below the low of the GAP in 5 trading days or less, take a long position as soon as the high of the GAP is broken.
12- If an equity gaps down and consolidates without trading above the high of the GAP in 5 trading days or less, take a short position as soon as the low of the GAP is broken.
13- Use Williams %R 30 to confirm entry and exit of positions.
14- When volume capitulation occurs, take a position for a quick trade.
15- On downtrending markets, use bearish engulfing patterns, with second candle’s top body price is at least 15% of first candle’s top price, with 2nd candle’s volume is at least 130% of 1st candle’s volume, when 1st candle of pattern made a new high.
16- Keep an eye on the global economic health by keeping an eye on Copper. Copper goes up, healthy global economy. Copper goes down, you guessed it, weak global economy.
17- Keep an eye on Dry Shippers. They bottom, buy coal stocks. They top, sell coal stocks.
18- Shanghai stock market bottoms, buy coal and dry shippers.
19- As the mighty Dollar weakens, buy gold stocks, exporters stocks, oil stocks.
20- To learn more about Technical Analysis Go Here: Yahoo Finance
More Option Stock Picks Trading Rules will follow.
If you would like to excel at options trading like myself, you will need to read the book by Steve Palmquist. Check it out:
Candlesticks are one of the most widely used technical tools in trading. Designed to provide detailed, at-a-glance information, these charts are integrated into almost every web site and charting software solution. But, despite their popularity, the definitions of these candlestick patterns are often vague and misleading. Now, for the first time ever, Steve Palmquist hands you the secrets for effectively using candlestick patterns in all market conditions. Data that would take years to compile and years to interpret is now at your fingertips. Based on intensive back testing and research, Money-Making Candlestick Patterns shows how to appropriately use the most popular candlestick patterns in bull, bear, and sideways trends.
Built from PROVEN FACTS, not theory, you'll learn:
*Clear definitions of each selected pattern to remove guesswork and improve performance
*Exactly what you need to know about back testing to increase your wins and minimize your losses
*The impact of various market conditions on the most powerful patterns to remove surprises and increase profits
*Keys to eliminating common testing mistakes that can prevent you from making money
*The candlestick pattern that has shown triple ROI in back testing
This book rigorously tests the assumptions inherent in standard candlestick pattern definitions. Each chapter breaks down the pattern to examine how parameters such as current volume, average volume, and price level will impact results. The definitions that most often produce profitable trades are identified and outlined with complete usage instructions for increasing your winning trade percentage. In this book, technician Steve Palmquist hands you his years of research. The information on back testing and the insight into your favorite patterns will give you a seasoned advantage in a fraction of the time. Thorough and efficiently organized, this book will allow you to use candlestick patterns to exploit every move the market makes.
Free Investing Tips
Free Options Picks Education
My Record
Compound Returns Sample
Chart Of The Week
Free Options Picks Of The Week
Disclaimer
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1- Never, ever, ever, ever try to catch a falling knife. Never, ever, ever, ever try to catch a falling knife. When a stock is trading lower, Do Not buy thinking it will bounce right back after you buy. The equity may keep falling a lot more than you think and you will have to double, triple or quadruple down to just to get back to the break-even point.
2- Never, ever, ever, ever try to go against the overall market. Never, ever, ever, ever try to go against the overall market. Vivid example is today's market. So many people tried to go against the market trying to predict a bottom and got hurt pretty bad. When in doubt, follow the trend lines to see where the market is heading before you take a position.
3- Always set trailing stops for winning trades. Always set trailing stops for winning trades. Especially, when the trade jumps in its first few days after getting filled. Set a trailing stop for 10%. Which means, if the option goes down in price by 10%, then you are automatically out. You can set the trailing stop at whatever you are comfortable with but just keep in mind that however easy you make the $$, you can easily lose $$ too.
4- Always set stops for initial entries. Always set stops for initial entries. After you get filled, set your stop loss at a target you are comfortable with. Simple but not followed by a lot of traders. Trades will go awry. You don't want to lose a lot of money and have none to get back in the game the next day. Take it from me! I lost a lot of money not setting stops. I don't want you to make the same mistake I made.
5- Always keep an eye on the overall market for signs of strength or weakness. Always keep an eye on the overall market for signs of strength or weakness. There is an all adage in Wall Street "The Trend Is Your Friend". It can't be any more true when the market is heading up, buy calls on securities that have shown strength. If the market is going down, buy puts on the securities that have performed the worst in the up market.
6- Never try to predict a bottom. Never try to predict a bottom. So many great investors just recently tried to call in a bottom and lost Billions. Try not be a hero. There will always be opportunities to chose from.
7- Never try to predict a top. Just when you sell thinking the top had been reached, securities can keep going up! You try to get back in thinking you have missed on the upside opportunity and the bottom falls off. Keep your eyes on the signals (Candlesticks, western, sentiment, news...)
8- Always use candlesticks for confirmation.
9- Always use support and resistance points.
10- Always use trend lines.
11- If an equity gaps up and consolidates without trading below the low of the GAP in 5 trading days or less, take a long position as soon as the high of the GAP is broken.
12- If an equity gaps down and consolidates without trading above the high of the GAP in 5 trading days or less, take a short position as soon as the low of the GAP is broken.
13- Use Williams %R 30 to confirm entry and exit of positions.
14- When volume capitulation occurs, take a position for a quick trade.
15- On downtrending markets, use bearish engulfing patterns, with second candle’s top body price is at least 15% of first candle’s top price, with 2nd candle’s volume is at least 130% of 1st candle’s volume, when 1st candle of pattern made a new high.
16- Keep an eye on the global economic health by keeping an eye on Copper. Copper goes up, healthy global economy. Copper goes down, you guessed it, weak global economy.
17- Keep an eye on Dry Shippers. They bottom, buy coal stocks. They top, sell coal stocks.
18- Shanghai stock market bottoms, buy coal and dry shippers.
19- As the mighty Dollar weakens, buy gold stocks, exporters stocks, oil stocks.
20- To learn more about Technical Analysis Go Here: Yahoo Finance
More Option Stock Picks Trading Rules will follow.
If you would like to excel at options trading like myself, you will need to read the book by Steve Palmquist. Check it out:
Candlesticks are one of the most widely used technical tools in trading. Designed to provide detailed, at-a-glance information, these charts are integrated into almost every web site and charting software solution. But, despite their popularity, the definitions of these candlestick patterns are often vague and misleading. Now, for the first time ever, Steve Palmquist hands you the secrets for effectively using candlestick patterns in all market conditions. Data that would take years to compile and years to interpret is now at your fingertips. Based on intensive back testing and research, Money-Making Candlestick Patterns shows how to appropriately use the most popular candlestick patterns in bull, bear, and sideways trends.
Built from PROVEN FACTS, not theory, you'll learn:
*Clear definitions of each selected pattern to remove guesswork and improve performance
*Exactly what you need to know about back testing to increase your wins and minimize your losses
*The impact of various market conditions on the most powerful patterns to remove surprises and increase profits
*Keys to eliminating common testing mistakes that can prevent you from making money
*The candlestick pattern that has shown triple ROI in back testing
This book rigorously tests the assumptions inherent in standard candlestick pattern definitions. Each chapter breaks down the pattern to examine how parameters such as current volume, average volume, and price level will impact results. The definitions that most often produce profitable trades are identified and outlined with complete usage instructions for increasing your winning trade percentage. In this book, technician Steve Palmquist hands you his years of research. The information on back testing and the insight into your favorite patterns will give you a seasoned advantage in a fraction of the time. Thorough and efficiently organized, this book will allow you to use candlestick patterns to exploit every move the market makes.
Free Investing Tips
Free Options Picks Education
My Record
Compound Returns Sample
Chart Of The Week
Free Options Picks Of The Week
Disclaimer
Home
posted by Stock Options Picker at
1:37 PM
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