Spend 2 hrs a day min studying via DVDs, Video lessons, or books.
Find a stock via finviz.com scan
Do not trade tickers mentioned in CHAT if they were not on your watchlist from your scan the day before
Price over .50 & under $10
Volume over 1M trades
Float under 5%
Potential run/profit should be over $1.00 (free and clear of support/resistance)
Only trade 1% of volume
Only trade 10% max of your account (100 max for learming)
Find out why the stock is moving (hype or earnings) if its hype = short; if its earnings winner = long
Check Calandar: DO NOT trade through earnings or upcoming announcments
Only trade in the direction of the Markets
Only trade in the direction of the stock on the day (green/red)
Only trade in the direction of the Monthly/Weekly/Daily charts using Intraday charting
DO NOT Short in the Morning; only in the last 1 hour of market close
Wait for Breakout or breakdowns ONLY - make sure its not over extended (must be the first or second day on the breakout max - and candle must still be touching the 4EMA)
If you miss the entry (exactly when it breaks out), wait for pull back to the 4EMA and enter right before the close of the day, as long as the day doesn't close under the 4EMA
DO NOT enter a breakout or breakdown if its already moved 1.00 point - too late
Wair for RSI to be well over 70 (Long) or under 30 (Short) on 120 Daily chart
Wait for MACD to be well over/under zero and target is moving in your direction
Stop out or exit if the day closes under the 4 EMA ON 120 Day Chart
Have entry/exit target and mental stops in place before placing any trade
Take 50% off the table when in profit
Only trade in the first 2 hours of market open or last 1 hour of market close
No trading if I loose more than $500 that day
Do NOT trade more than 3 setups per day (no way there can be more than 3 good setups)
Do NOT trade unless the setup is perfect
Do NOT trade the same stock twice in the same day if you are stopped out
NEVER trade on Margin
Thanks. I know level 2 but what is top and bottom?
@nslookup "over extended" means when the stock is up or down for too long, for example, if its gone from .20 up to 6.00 ... only so much more it can go. Top/Bottom are support and resistance levels
@bakerlovesprofit Thanks, I'll keep updating this as I learn
@nslookup Top - when the supernova is over
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