Monday, January 12, 2015

New checklist for trading

I'm stating some strict rules for entries that I have to check before taking a position.

1. At least one of the following criterias must apply.

A, Chart is in a blow off top
B, Chart is in a test of resistance
C, A very strong fundamental case for entry exists

2. Manage bet size. A 3X leveraged chart must be able to withstand 700% from bottom to top.

3. When exiting shorts do not re-enter them when the chart goes back up. See point 1.

4. Tests of resistance should be bet very carefully from low positions.

5. Limit the total number of trades. Really good setups do not come that often.

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