Wednesday, March 10, 2010

3 'S' to enter, 4'S' to exit!

I have revised and finalised my trading method.

I am openly sharing this below for my dear trading friends.

1) I will buy a stock on the basis of the 3 'S' signals below:-

"Step" (Higher Low)

"Support"

"Sleeping Volcano"

2) I will sell off the stock on the basis of the 4 'S' signals below:-

"SMA 34/8"

"Spike"

"Step-up Step-down" theory

"Stop Loss"

3) I will prefer trading high beta stocks of sound companies.

4) I will not short.

5) I will not leverage beyond my safe limit of ability to absorb 30% shock!

6) I will not day trade but swing or position trade.

Any discussion is most welcome.


Note:-

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"Step" (Higher Low)

Discussed in my post "Trading Brahmaastra"

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"Support"

Sharp support for the baseline after a correction rally

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"Sleeping Volcano"

Discussed in my post "Volcanos of stock market"

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"SMA 34/8"

Discussed in my post "Deadly combination of 34/8"

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"Spike"

Discussed in my post "Spike, Climb and Shift"

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"Step-up Step-down" theory

Discussed in my post "Trading Brahmaastra" as baseline/top line

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"Stop Loss"

Discussed in my posts "You can't be a winner..." and "Climbing mountain..." and "Guerilla..."

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