The Philosophy
The market follows trends the same way consumers do. What's trendy today, may not be tomorrow.
Prepare.Plan.Profit.
The market is driven by psychology and societal trends. Just stop and look around you. What is everyone doing, buying, getting rid of, talking about, and wearing? By using this as your starting point, learning how to master the market is easier than you think.
Prepare.Plan.Profit.
The market is driven by psychology and societal trends. Just stop and look around you. What is everyone doing, buying, getting rid of, talking about, and wearing? By using this as your starting point, learning how to master the market is easier than you think.
Trading Rules
When developing trading rules, its critical to FOLLOW THEM! All too often, rules are created only to be broken time and time again.
Buying
1) Stock has pulled back 6% from high
2) CMF is rising
3) Brand/Product/Company is noticeably 'in style' and changing our culture. NOT A FAD!
ex. Everyone carrying around Starbucks cups as a badge of honor, lines for iPhones, men and women dressing more athletically and eating healthier (yoga pants, Nike shoes, Chipotle over McDonalds), etc.
4) RSI is rising on the weekly
5) MACD is crossing over on the weekly
6) Breaks (and holds) downtrending channel (on the weekly) on larger than average volume
7) Increased Earnings YoY
Selling
1) The stock falls 6% below the initial buy point within 14 days after the trade.
2) Stock breaks the intermediate term (4-8 month) line of support
ALWAYS DEFINE A GOAL AND EXPLAIN YOUR REASONING WHEN PURCHASING OR SELLING. DO NOT GET CAUGHT UP IN THE EMOTIONAL ASPECT OF TRADING.
Buying
1) Stock has pulled back 6% from high
2) CMF is rising
3) Brand/Product/Company is noticeably 'in style' and changing our culture. NOT A FAD!
ex. Everyone carrying around Starbucks cups as a badge of honor, lines for iPhones, men and women dressing more athletically and eating healthier (yoga pants, Nike shoes, Chipotle over McDonalds), etc.
4) RSI is rising on the weekly
5) MACD is crossing over on the weekly
6) Breaks (and holds) downtrending channel (on the weekly) on larger than average volume
7) Increased Earnings YoY
Selling
1) The stock falls 6% below the initial buy point within 14 days after the trade.
2) Stock breaks the intermediate term (4-8 month) line of support
ALWAYS DEFINE A GOAL AND EXPLAIN YOUR REASONING WHEN PURCHASING OR SELLING. DO NOT GET CAUGHT UP IN THE EMOTIONAL ASPECT OF TRADING.