Disciplined Strategy

I have made some vows when trading that includes the following rules.

Be patient. The odds that my entry point is a couple cents below the stock’s lowest bottom are very minimal. Relax, just like experience has taught me, the price will usually go down to initial entry point I’ve set within time. Never rush into a stock.

Orders shall come in packs of three. Predicting an absolute high and absolute low will never happen. When I’ve placed an order to buy, make sure once its purchased that a stop order to sell and a limit order to sell are put. The limit order to sell is set at the price target I want it to reach and one stop sell order for if the stock falls beyond a certain point. The stop order minimizes my loss, and the limit order makes for a smooth exit point. Typically these two amounts will depend on the situation, but a good ball bark figure is to sell once it’s made 3%, or if it lost 1.5%.

Be an active trader, not a lazy one. This means not holding a stock for more than a week, or more than 24 hours preferably.

Research different stocks for at least one hour before making a decision.