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       Trading Guidelines  |  Buy & Sell Criteria

TRADING GUIDELINES

We utilize technical analysis and proprietary algorithms to pinpoint precise entries & exits

 but we must still follow basic trading rules when executing trades in Real Time:


Each trading plan comes with a detailed technical chart outlining Not only price  

entries and exits but also technical targets as well.

We call these entry and exit points "triggers" and you should set your alerts as 
according to these trading plans we post these in real time each day

For example if a chart says buy BBRY on a break northward of 16.22 then you set 
your alerts on your charting software to alert you when the price has breached that 
price at which point you need confirmation before "pulling the trigger".

CONFIRMATION PARAMETERS

Once the alert goes off you need confirmation by watching price stay above the   

entry point on our chart for 15 - 20 minutes before entering long to prevent from 

being "whip-sawed" on a mere fake out as AAPL does all the time.

Each morning go through the charts under the weeks trading plan to determine 
which chart has been updated and which one hasnt..the trades will remain on the 
board until it has triggered - We recommend taking only one or two trades per day so 
you can easily monitor your positions - it only takes one great trade per week to 
make a months worth of profits.

STOP LOSS ALERTS

Trading the stock market is all about managing risk and letting your winners run 
while cutting your losers short.....any pro trader will tell you that you will have a 
losing position at times but you simply must cut it loose and not trade off Hopes and 
dreams of it turning around, chances are if it doesn't go green in an hour it won't ever
if your alerted that your stop loss has been triggered and you stop out then right 
away reset your alert to notify you should price cross back over your stop loss so 
you may re-initiate your position

TAKING PROFITS

Many of our trading plans include targets that are reasonable but when your position 
is up 10% to 20% or so then take some off the table....don't be greedy and never let a winner 
turn into a loser.  If the pre market is up significantly always sell now and ask questions

later...you can always get back in later, Stock Options especially gain value quickly on

explosive moves then peter out as the day drags on, hence take GAINS quickly if using

options, Always scale out of positions, at least leave 10% or so . We utilize trailing stops

to capture momentum & PROFITS.


FOLLOWING THE RULES

If you don't follow your rules the market will crush you, for instance if the chart says 
to buy on a break of 15.77 and you buy at 15.20 then you just broke the rules and 
more than likely you will get faked out and price will fall and you will get stopped out 
at a loss and sometimes those losses add up in a hurry so don't try to out smart the 
market , follow the alerts and trade without emotion or greed and you will have much 
success in being a swing trading professional, (yes, most trades are 2 to 4 days)

At the market open sit on your hands and don't be anxious to buy for at least 15 to 
30 minutes unless the stock that you have in your crosshairs has already triggered 
and even then only initiate your position with a 3% to 5% position size until your 
stock has successfully tested significant resistance and support levels as indicated 
on charts in Trading Room - if your position goes against you SELL IT

 

Plaque on our office wall:  "The market Giveth....and The Market taketh away."

2014 DayTradersGroupofAmerica.com

 

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