• Free Book
  • Store
    • Books
    • Free First Chapters
    • Free Newsletters
  • Recent Articles

TradingMarkets.com

Quantified Stock Market Trading Strategies & Systems

  • Home
  • New Trading Research
  • Education
    • Articles
      • Connors Research
      • ETFs
      • Options
      • Stocks
      • Volatility
      • Contributors
        • Larry Connors
        • Kevin Haggerty
        • Matt Radtke
    • Trading Lessons
    • Connors Research
    • Glossary
    • Interview Archive
    • Videos
  • Python
  • Quantamentals
    • Quantamentals: The Next Great Forefront of Trading and Investing
    • Quantamentals Resources
  • Courses
  • Store
    • New Book! The Alpha Formula
    • “Buy The Fear, Sell The Greed” – Best Seller!
    • Swing Trading College 2019
    • Trading Books and Guidebooks
    • Street Smarts
    • Online Trading Courses
    • Private Mentoring with Larry Connors
    • Customized Trading Research
    • Amibroker Strategy Add On Modules
Home » TradingMarkets 10 Trading Rules: #7 – If You Buy Stocks, Buy Established Companies

TradingMarkets 10 Trading Rules: #7 – If You Buy Stocks, Buy Established Companies

October 14, 2008 by David Penn

This basically ties into the same philosophy as Rule 6 which is to try to minimize overnight risk. Overnight gaps in equities occur all the time. But they tend to occur more in less established companies, especially those in the technology industry.

Therefore in order to lessen overnight risk, look to trade the better, more established blue chip companies, especially those found in the S&P 500. For those of you who are willing to assume a bit more risk, you can expand your universe to the Nasdaq 100 companies.

If you find these TradingMarkets Rules worthwhile, then take the next step and learn more information about our Swing Trading College. The Swing Trading College is one of the most popular courses we have offered and a variety of traders – from real-world professional money managers to end-of-day part-timers – have taken advantage of our 14-week course to give their short term trading the extra tools – or major overhaul – they need in order to profit in volatile markets. To learn about the Swing Trading College in greater detail, Click Here.

To read our series “TradingMarkets 10 Trading Rules”, click here for Rule #1, Rule #2, Rule #3, Rule #4, Rule #5 and Rule #6.

You can also read the next installment in our series: Rule #8 – The Relative Strength Index: A Short Term Trader’s Best Friend, by clicking here.

David Penn is Editor in Chief at TradingMarkets.com.

Filed Under: Commentary, Recent Tagged With: Buying Established Companies, Stock Trading Strategies, trading stocks, TradingMarkets 10 Trading Rules

Beginner's Guide to Python

new Book By Larry Connors and Chris Cain, CMT

The Alpha Formula

Buy The Fear, Sell The Greed

Buy The Fear, Sell The Greed

Programming in Python For Traders

Programming in Python For Traders

Company Info

The Connors Group, Inc.
185 Hudson St., Suite 2500
Jersey City, NJ 07311
www.cg3.com

About Us

About
Careers
Contact Us
Link To Us

Company Resources

Help
Privacy Policy
Return Policy
Terms & Conditions

Properties

TradingMarkets
Connors Research

Connect with TradingMarkets

Contact

info@cg3.com
973-494-7311 ext. 628

Free Book

Short Term Trading Strategies That Work

© Copyright 2020 The Connors Group, Inc.

Copyright © 2021 · News Pro Theme on Genesis Framework · WordPress · Log in

TradingMarkets.com logoTradingMarkets.com supplies active traders with the education and tools they need to make trades based on data - not emotion and delivers content, tools, data, and trading systems aligned with the proprietary trading methodologies developed by Connors Research. Learn more about our products and services here!