MY FEW SIMPLE RULES

  • See the difference between Price and Value. Must able to decide whether a stock is priced above or below our estimate of its value.

  • Always start with the longest-term picture we can get i.e. 20-year, 5-year. Starting our analysis with as much history as we can.  This gives us more perspective. 

  • The Other Traders. Find out why someone would sell the stock to us.  Pros / Cons list.

  • PATIENCE IS TO

    • WATCH stock trade for few days to get a FEEL. Understand WHERE the particular share price is with regard to its current TREND. Where has Price been? Where is it likely to go? 

    • Let the market STOP going down. Let the stocks HOLD Higher and only then Load Up. LOW VOLUME ON THE PULLBACK, HIGH VOLUME AS THE STOCK ADVANCE HIGHER

  • DISCIPLINE IS TO

    • Always trade IN THE DIRECTION of the MAJOR TREND

    • ​Do Not be the FIRST to buy

    • Only take a trade if RISK/REWARD is at least 1:3. Set Protective Stop, Entry Point and Apply EW + Fibonacci to calculate probable Target Price. 

    • Always UNDER-TRADE! PROBING small position first

    • WHEN I AM WRONG. I GET OUT OF MY POSITION!! NO IFs, ANDs, BUTs, or MAYBEs about it

  • COURAGE IS TO

    • Buy High and Sell Higher. Don't afraid to join later in a strong trend. 

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© 2016 by aTrader