|
defining trades
date 09/12/07 time 6.44 pm
hi all,
i am extremely sorry as i could not write this week as i was finalising the mode of writing here. i wanted to develop a simple yet effective way of communicating with u all in numbers and the aim has now been achieved. Excuses they say is the mother of all liars lol, so i wish and pray that u dont think me to be one.
so here are a set of rules that i follow in my trading style.
1] i never trade against the main trend of the market.
2] i never trade against the main trend of the stock.
from rule one and two we logically arrive at the conclusion that we cannot trradee in securities whose main trend is not in line with that of the market or vice versa.
3} our entry and exit points have to be predermined.
4] entrty and exit points apply to both money ( price ) and time. ( how much time we stay with the trade.
NOTE it is very important to understand this point and ingrain the principles involved in it.
5] never enter the market without a plan. the plan has always to be decided before market hours not during market hours.
so much for now
|
