Friday, April 26, 2013

How do I Trade

Here's the list on how I trade the market:

1. BUY : By Indicators
1.1 EMA changed direction from down
to up. If my sts/rsi is in oversold
level and already pointing up, i do
not wait EMA to change direction,
and the price is on or broke the
lower band.
1.2 MACD is in the negative zone.
1.3 MACD Histogram is in the negative
zone but already rising.
1.4 RSI is oversold and pointing up
1.5 STS is oversold and pointing up
1.6 Bull power's latest peak is higher
than previous
1.7 Bear power is negative but rising

I build my position in four tranches, 50% , 25% and another 25% of my planned size or number of shares.


I usually SELL my position when the above indicators started to reverse OR if there is a sudden NEWS that may cause the price to drop. resistance and upper band are also my indicators to SELL. What i like with this trading approach is that it exposes me to minimum risk and a high chance of big profit.


2. BUY : On Rumors OR Stock Disclosure
There are times in the market that i get information about backdoor, inclusion to the index, new asset aquisition, new business aquisition, dividend declaration and other rumor or news that causes the price of the stock to go higher. I then check the chart of the stock according to my indicators, if it fits to my buy signal, well and good. If not i will watch the volume and price action and will try to trade the price movement. This approach is very risky. PROFIT and LOSS is very high. When i trade using this approach, i expose a small amount of capital and jump out quickly when price go against my position.

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