Trading strategy for trading on the NYSE,NASDAQ,AMEX (Draft, I will constantly finish writing)

 

In the process of editing 21.10.2010 The essence of my trading strategy is simple, it is trading on the continuation of the trend or reversal of the stock within the day after a significant rise or fall.

The main signals for the continuation of the trend:

  • On the daily chart, the stock must rise or pass a key level. Most often, I trade stocks that are on an annual high or have passed some significant level for 100 days.
  • Look levels on the day and 15 minute scale, there should be a clear trend

  • It is good if the volume rises on the daily chart
  • Look smoothness of the action and her adequacy, so that there are no large shadows and some kind of sharp movements that are not understandable
  • Pay attention to how it holds horizontal levels. The most important levels are usually figure, this is an even number (10$,11$,12$) second most important every 50C (10.50$ 11.50$ 12.50$) and every 25FROM (10,25$ 10,75$)
  • I put stops behind these levels, or they hold well or I am already guided by the chart
  • I try to enter the position in the area +-10C from levelI, no more. (For example, a stock rises and passes prices in 10$ i will try to get in the range 10.00-10.10 not higher, I rarely enter the level)

Examples of :

  • Drawing the bottom, in the form of a saucer, reversal stock . Stock must pass at least 2-3$ from the opening and trading in the afternoon such signals.
  • Reversal, after a strong climb stock and explosion volume. Minimum 1$ must grow and starts at level abut.

 

Money management ( Risk management) :

  • If a 3 days in minus, 4 I don't trade for a day.
  • If a 3-4 deal minus, rest for a while( min. 30 minutes )
  • More 5 deals with O result, resting for a while( min. 30 minutes )
  • I share the intraday loss limit :
    • 60% from limit I can lose before 12:00
    • 40% from limit I can lose after 14:00
  • ON OPG I can lose depending on the position size, for every 1000 shares ~ 7C loss.
  New Year fiasco

Example: if I have a position 1000 shares then after an open loss in 70$ i will cover the position,

on 10 000 not more 800$ etc

  • ON MOC already 10C on 1000 shares , not more 1000$ on 10000 shares
  • STOP in all positions about 10C, but not more than 15C .

Research. Selection of shares for trading on NYSE

Watching news :

  • RBK
  • www.quote.ru/shares/today_news.shtml
  • www.k2kapital.com
  • briefing.com
  • bloomberg.com
  • www.plan.ru/

Economic numbers that will be released:

  • www.briefing.com/Investor/Public/Calendars/EconomicCalendar.htm

During company reports , то Earnings Calendar :

  • www.briefing.com/GeneralContent/Investor/Active/ArticlePopup/PagePopup.aspx?PageId=3270

Upgrades and Downgrades for shares:

  • www.briefing.com/Investor/Public/Calendars/UpgradesDowngrades.htm

Technical selection of shares : I select the shares that passed the most yesterday in dollars, minimum volume in shares 500K, traded on NYSE, 52 high or low

  • finviz.with
  • www.investertech.com
  • stockcharts.com/def/servlet/SC.scan
  • www.prophet.net/analyze/javacharts.jsp

So stock turns out 250-300, I am already taking them on schedule. As a result, it remains 20-30 stocks at best for trading and less, not counting the shares which are reported . I could forget something, if I will add something later.

 

Superstitions, ritual

I'm not superstitious. I have no pre-trade rituals, if I notice any such things behind me, I immediately catch myself thinking and never repeat them. I have no happy things or objects, these are all superstitions and I isolate myself as much as possible from this. My success depends only on me, and not from signs or things.

 

 

 

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