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Stock Screening
The trading system looks at the Energy, Healthcare, Financial and
Technology sectors and performs the first scan of the entire stock
market within these industries based on the following criteria.
Traders can change this according to your trading style.
Price: $1.00 to $25.00 stocks
Average Daily Volume: at least 1,000,000 shares or more
Market Cap: billion dollars or more.
This will give you a decent amount of stocks to choose from. You can
eliminate stock you don't like or set the screener for different
stocks, primarily based on before the open news, announcements,
results reporting or analyst upgrade downgrade initiation. You can use
5 minute charts for the stocks you like to try and trade. You should
watch them throughout the trading day.
Money Management is that you only trade what you can afford. The
number of shares of each stock that you can purchase and stay within
your trading plan.
Risk Management
A protective Stop Loss is placed upon entry at a level that shows
resistance, or previous highs and lows are used to determine this
price level. If the price moves in your direction a stop loss can be
moved to break even or a trailing stop is put in place.
Entry Signals
The entry signal is given by a break in any given period of the 100
period Simple Moving Average of the stocks’ volume and the buyers are
showing support on your level II.
Exit Signals
When you entered the stop loss ,this determines the exit at a loss
level near resistance, This is used to determine the traders exit at a
profit. When the stop loss is moved towards break-even, an exit at
this level could happen. You can do a manual sell if the trend changes
direction supported by volume size like the one present when you place
the buy order.
Basic strategy for trading the stock market
Stock trades should not be taken before 9:45 a.m.
Traders in positions are closed end of day or when the trade reaches a
profit point.
Good price with out a gap up or down AND strong volume coming in must
be present to start a trade. Price moves without volume or volume.
Spikes without price movement are not good and should not be traded.
Watch trend lines are used drawn to aid in determining the time to
exit the trade.
You should use longer term time frames 30 min ,1 hr, 1 day are good to
start with when deciding on making a trade.Traders should us regular
stop losses or trailing stops. Moving averages 9,18 EMA and MACD
whether it is above below the zero line.
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