1. Believe in the power of
technical analysis – When a chart registers a daily, weekly or monthly
reversal, 9 times out of 10 it’s for real.
2. You have to learn to
believe in the power of chart patterns and learn to trade them aggressively,
especially continuation patterns etc.
2. Believe in the power of
what the chart is telling you. If a chart is surging to new highs or new lows,
that is power personified and is real.
3. Learn to go with the
flow. The trend is your friend. Try to initiate positions within the uptrend,
can buy dips and buy strength accordingly.
4. Anytime the fundamentals
are ahead of the stock price, buy the stock. The fundamentals almost always
vindicate you sooner or later.
5. A Limit Up move
is usually a big buy signal, especially if it is the first one in some time.
A Limit Down move is a very big sell signal.
6. When a stock registers
new 52-week highs, that is an _expression of developing strength and should be
interpreted as a buy signal.
7. When a stock registers
new 52-week lows, nine times out of ten that is a sign of developing weakness
and can be a very big sell.
8. Conversely new contract
highs on futures is usually an expression of trend power and is almost
always an exceptionally strong buy.
9. New contract lows on
futures is usually an even more reliable sell signal that often can lead to
sustained downtrends over long time.
10. Learn to average up and
down where appropriate. Buying strength and adding on strength can deliver
market-beating performances.
11. Be aware of sentiment
and market psychology. When sentiment gets exceedingly negative, you have to
be looking to buy selloffs.
12. Be decisive. Bidding for
stock can result in disappointment. When you make a decision. Buy or Sell at
market. Get what you want.
