My Trading Rules

2 questions

1. Does the chart make sense to me?
2. Can I make money off this chart?

Trading Daily Routine
1) Only look at the Profit and Loss often when emotion is contained. Else check every 2 hours, 9:00 am, 11:00 am, 1:00 pm and 1 hour before close
2) Enter trades 1 hour before close, AFTER checking the charts, look for high and low of the day compare it with the day before to see if the trend is broken
3) Don't enter a new trade on the SAME DAY after being stopped out, the original analysis must be considered, because it was taken with less emotions.
4) Monitor each position, Has it hit the target, hit the stop
5) Adjust Stop, at the end of day or intra day.
6) Move the stop up to break even point, as soon as the stock moved $2 in the right direction.

• Do something everyday, don't have to trade everyday.
• No body knows what to happen, take advantage from those who think they "know" what will happen, because most likely they are wrong
• Good entry makes good stops
  

Trading Weekly Routine
1) Check the week ahead for the possible Earnings and Split plays, change of industry
2) Update Trading Journal
3) Run through the entire A-Z watch list to add stocks to Bull and Bear

Trading Monthly Routine
1) delete last month's Bull and Bear watch list


Don't trade in the vaccumn
1) what are the major indices doing
2) what are the major sectors doing
3) what are the major stocks doing

Entry Rules:
1) Candles are only important at Significant support and resistance, don't enter with just Tweezer Bottoms, or engulfing or Harami formations.
2) In line with the market posture, industry, and stock trend
3) NEVER pick the bottom or top, wait for confirmation, use price and volume (as a reference, remember price is king, and the ONLY THING PAYS is PRICE!)
4) If the overall Market Trend is strong, enter intra day, if the overall Market is not strong, need end of day confirmation.
5) look for entries especially when the price retrace to 61.6% (23% in a strong up trend) Fibo, i.e. 38% from the top of last up swing when draw from high to low (see the POT in Dec '07 below)













6) if the stop is too far, you are risking too much, don't enter the trade, wait for a better trade.
7) Ask self: No Fear, No Doubt -or- Overtrade!

Exit Rule:
1) got stop out
2) Sign of Weakness rule

2.1) Bullish trades: NOT the next day, but 2 days after entering the trade, when the price is:

2.1.1) lower low,

2.1.2) closed lower (red candle)

2.2) depending on the daily range of the stock move stop up relative to the low of the day before or 2 days before.
2.3) Move stop up relative to the low when a doji (or harimi) is formed.

3) Bullish change the stop to relative to the low on that day when it hits the target.

Note:
1) Fibo supports only works in uptrend
1.1) Fibo for confirmations only, not the trade signals
1.2) Min Fibo measures 6 to 8 Candles
2) support formed only AFTER the bounce.
3) Price Level penetration by at least 3% for Broken support or resistance, more significant at 150% volume.

2-line MACD
1) The farther the MACD two lines cross over from 0, the higher possibility the move will be.

Divergence
1) use MACD for intermediate and long term divergence
2) use RSI Wilder for hourly chart divergence indicator