Saturday, June 4, 2005

My trading rules

1. Always long leaders; short losers.

2. Always FOLLOW THE TREND that is DO NOT long in a bear market, DO NOT short in a bull market.

3. Long (short) a stock if it moves over the trend line of a base or a pattern with its current daily volume running above 20% of its 20 days average volume in the 1st hour.

4. Always place a stop, not more than 5%, below (above) the buy (shortselling) price right after you enter the position.

5. Do not hesitate to sell (cover) your stock should it return back under the trend line or breakout point.

6. Do not hesitate to sell (cover) your stock if it is not making the big movement within a couple of days as it was supposed to.

7. Sell 30% - 50% of your position as the stock moves 5% to 10% from its breakout point.

8. Hold your strongest (weakest) stocks the longest and sell (cover) stocks that are acting sluggish quickly.

9. Only bet what you afford to lose if you decide to hold through the earning.

note: shorting is in ( ).


AJ said...

Ucla,What are your rules for adding to an existing position ?

uclatrader said...

i usually add an existing position after the pullback ends, which certainly can not violate the uptrend at first place.

Geometric Trader said...

Ucla, can you give an example, graphically prefer, for each of your rules? It would help me to understand your trading philosophy in a practical way.

uclatrader said...

why don't u subscribe my free trial, where u will see it in a graphic and practical way?