Thursday, October 25, 2012

MY CORE DAY/SWING TRADING STRATEGIES

DON'T:
  1. Don't open a position in premarket.
  2. Don't enter a setup before it breaks out.
  3. Don't enter a position trading below ADV - average daily volume (less than quarter ADV first half  hour and/or half ADV the first hour of regular trading session).
  4. Don't hold over night if not trading near High of the Day (HOD).
  5. Don't allow a gain to turn into a loss.
DO:
  1. Sell in the first hour and buy in the last hour.
  2. Enter a position with "Changing of Guard" turns from red (negative %) to green (positive %).
OTHER:
  1. Stochastics have a greater influence over Bollinger Bands.
  2. Fair Value = SQUARE ROOT (22.5 x EPS x Book)

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