|Sent on:||Friday, June 8, 2012 9:00 AM|
Hello everyone, I posted Ted's trading rules on the discussion board.
Here they are for further discussion and use in our next meetings.
Leader List: Buy blue, sell red (7% stop loss from purchase price)
Cut list: Buy ATM put with at least 30 days to expiration on first cutlist appearance, sell put when you make 20% (This rule needs clarification of what to do when trade goes against you).
Using Paper and Investors.com
1 stock per day. Use 'Up movers' in big picture for short list, go to time savers table and pick highest ranked stock of the in shortlist.
Entry: 10 cents above previous high in flat base, or top of handle in cup w/ handle base. Use IBD 50, weekly review, IBD big cap 20 annotation to see what correct buy point is. Price move should be accompanied with 150% ADV.
Exit: any of the following 1) gap down with close lower than previous day's close 2) break of major support, usually 50dMA, but could be less if stock has been holding a tighter MA line 3) institutional selling (more than 150% ADV on down day) 4) market enters a correction 5) stock reaches target of 25% from buy point 6) stock falls 7% from buy point.