Cut your losses and let your profits run

One of the first rules I mention when it comes to trading is to cut your losses and let your profits run. And if you are not profitable in the trade on the first day, close the position. You can always get back in the next day if you determine a new trade is desirable.

The most violent up or down moves in markets can take place at the end of a trend, when the market is already extended and overbought or oversold.

 

   -----Victor Sperandeo

Horizontal Trendline Broke Above

2020/7/16

Upside breakouts on the buy side

2020/7/11

Mining gold mines in Taiwan ?

Upside breakouts on the buy side

 

 

How to make money in Stocks? Select A+ stock to trade!

2020/7/2

How to make money in Stocks? Select A+ stock to trade!

Put the probabilities of Success strongly in our favor !

2020/6/5

Put the probabilities of Success strongly in our favor !

The Swing Rule

2020/05/28
The Swing Rule 6231系微 ⊕$77.1

Head and Shoulder Bottom

2020/5/4

Head and Shoulder Bottom

6165捷泰

Measuring the move, the Swing Rule

Trading for a Living in Taiwan

2020-04-20

1903士紙     ⊕  39.85

 

According to Swing Rule : A $37.8 – B $25.2 = $12.6  Trading Target C = $12.6 + $37.8 = $50.4 ????

Dow Theory

 

 

Manipulation

The first assumption is: The manipulation of the primary trend is not possible. When large amounts of money are at stake, the temptation to manipulate is bound to be present. Hamilton did not argue against the possibility that speculators, specialists or anyone else involved in the markets could manipulate the prices. He qualified his assumption by asserting that it was not possible to manipulate the primary trend. Intraday, day-to-day and possibly even secondary movements could be prone to manipulation. These short movements, from a few hours to a few weeks, could be subject to manipulation by large institutions, speculators, breaking news or rumors. Today, Hamilton would likely add message boards and day-traders to this list.

Hamilton went on to say that individual shares could be manipulated. Examples of manipulation usually end the same way: the security runs up and then falls back and continues the primary trend.

While these shares were manipulated over the short term, the long-term trends prevailed after about a month. Hamilton also pointed out that even if individual shares were being manipulated, it would be virtually impossible to manipulate the market as a whole. The market was simply too big for this to occur.

Technical Analysis for Short-Term Traders

The principal difference between Day Trading and other forms of trading is the time frame

Technical analysis assumes that prices move in trends

Trends have a tendency to perpetuate

In technical analysis we are dealing in probabilities, never certainties

Outside bars are reversal patterns that indicate a change in sentiment

Inside bars indicate that prevailing momentum has dissipated because buyers and sellers are now equally matched

The key reversal bar should be accompanied by climactic volume

A very strong signal of a reversal in sentiment

Characteristics

1.      Price opens the bar strongly in the direction of the prevailing trend

2.      Trading range of the bar is extremely wide

3.      Price should close at or close to the previous close

Characteristics of Exhaustion Bars

1.      A wide trading range following a sharp price move

2.      The close is higher than the opening in a downtrend or the opening is lower than the close in an up trend

3.      The close is more than half way up the bar in a down trend, and more than half way down in an up trend

4.      Pinocchio bars give us a false impression of what is really going on

Martin J. Pring

Accumulation/Distribulation Line

Trading Rules

1)      The best trading signals are given by divergences between A/D and prices.

2)      Just as important, A/D Line breaks out new high or low before prices.

3)      When you go long or short, following a divergence between A/D and price, remember that even market professionals can go wrong. Use stops and protect yourself.

Gap Rule

If there is a gap, and it is going to reverse, it will do so 10 to 15 minutes after the opening 95 percent of the time. If the market continues in the direction of the gap after 10 to 15 minutes, it is a strong sign that the move will continue for the rest of the day, closing in that direction as well. Even if the market reverses after 10 to 15 minute period, if it fails to fill the gap, odds are that the market will close in the direction of the gap. This also applies to stocks and other commodities.

When you have a gap above or below a trend line, it indicates an important change (news and/or fundamental) and points to a change of trend. This rule can be used only in conjunction with another confirming principle.

                                                   
                                                                                                ------Victor Sperandeo

Whipsaw

People don't use stops for three reasons: ignorance, wanting to hang on to hope, and the trouble with whipsaws.
A whipsaw means that you buy a stock, set a stop underneath, the stock declines and hits it, you exit with a loss, only to see your stock reverse and rally just as you originally expected. After several whipsaws many folks give up using stops. But trading without stops is a receipe for a disater because sooner or later, one of your 'stopless' stocks will get caught in a major downdraft and deliver a 'shark bite' to your account.

                                                                  -------Dr. Alexander Elder

There are no certainties in the markets, only probabilities

2018/11/16

There are no certainties in the markets, only probabilities. Even a reliable pattern, may fail occasionally.

Market forecasting is a matter of probability, the risk of being wrong is always present.

Many people make the mistake of thinking that market is truly predictable. Nonsense, trading in the markets is an odds game, and the object is to always keep the odds in your favor.

The way to build wealth is to preserve capital, make consistent profits, and wait for the right opportunity to make extraordinary gains.

High-flying stocks

2018/10/4

Stocks with no assets or earnings can fly on hot air. A value trader who feels he is missing those spectacular moves has a choice. 1. He can stick to his method, soberly saying, “Can’t catch them all”. 2. Or he may decide, “When living with the wolves, howl like a wolf” and start buying upside breakouts. If you do that, the only asset separating you from the manic crowd is your risk control – your stops and money management.

   -----Dr. Alexander Elder

Making your strategic decision-bull or bear on a long-term chart, then switch to a shorter-term chart to buy and sell

2018/9/29

A perfect indicator doesn’t exit. Markets are complex, you cannot win using a single tool.
When a rising slow moving average identifies an uptrend, then buy pullbacks into the value zone.

Stock Market Wizards

If you read about many of the great traders in history, you’ll find that a very large percentage of them blew out (lost all their money) at least once, and some of them blew out two or three times in their career. Add to this the fact that only about 5% of commodity traders make money, and you have to wonder. “What’s going on here”.

There are many reasons why people lose money in the market, but one huge and easily avoided mistake is putting too much capital at risk in a single position betting it all. The mistake arises because people don’t set forth a business philosophy for themselves before making a trade in the markets.                                                                                                                                                           Many people make the mistake of thinking that market behavior is truly predictable. Nonsense, trading in the market is an odds game, and the object is to always keep the odds in your favor.

                                                                                            

                                                                                                            ---Victor Sperandeo

 

 

Mark Weinstein

How much were you losing each day ?

 Before that trade, I had nearly $1.5 million in my trading account. So I was losing nearly 10 percent of my equity level prior to the trade each. I was devastated. I felt like I was wounded in a trench and watching myself bleed to death. The market went limit-down five days in a row, and I lost over $600,000. On the fifth day, I remember sitting in a park holding hands with a girl I had picked up, literally crying on her lap. I was practically in a psychotic state. I thought about getting out of the business altogether. I started to think that what everybody was telling me was true-maybe it was luck that I had made money all those years. I worried that If I continued trading, I could wind up losing it all, and being forced to go back some job I didn’t like.
------Mark Weinstein ( The man who turned the $100,000 into over $900,000 in three months US options trading contest)

Wall Street Master

I always combine technical, statistical, and fundamental economic factors to assess the risk of any speculative position. Only when all three factors point in the same direction do I get involved in any significant way. Moreover, through experience, I have learned how crucial it is to be aware of existing or potential government intervention in the marketplace.

 

By Victor Sperandeo

Stock Picking Secrets CAN SLIM system

CAN SLIM system

Each letter in the CAN SLIM system stands for one of the seven basic fundamentals of selecting outstanding stocks. Most successful stocks have these seven common characteristics at emerging growth stages, so they are worth committing to memory.

C = Current Quarterly Earnings per Share: The Higher, The better

A= Annual Earnings Increases: Look for Significant Growth

N= New Products, New Management, New High: Buying the Right Time. And most important, buy stock as they emerge from sound, properly formed chart bases and begin to make new highs in price.

S= Supply and Demand: Shares Outstanding Plus Big Volume Demand. Look for big volume increases when a stock begins to move out of its basing area.

L= Leader or Laggard: Buy market leaders and avoid laggards. Buy the number one company in its field or space. Most leaders will have Relative Price Strength Ratings of 80 to 90 or higher.

I= Institutional Sponsorship: Buy stocks with increasing sponsorship and at least one or two mutual fund owners with top-notch recent performance records.

M= Market Direction: Learn to determine the overall market direction by accurately interpreting the daily market indexes' price and volume movement and the action of individual market leaders. You need to stay in gear with the market.

                                                     -------- How to Make Money in Stocks   William J. O'Neil