My Trend Trading Rules

Entry:

• an uptrending stock bounces off support
  
• confirmed bounced, close higher than the high of the low day, can be hollow or filled candle, full position size
• unconfirmed bounced:
  
  1. uptrending stocks,
  2. low of the day falls between 33% and 66% retracement of the last upswing.
  3. must be a up day with hollow candle, enter on Bullish Engulfing, Bullish Piercing Line, Bullish Belt Hold.
  4. half position size, add the next half on the confirmed bounce (sometimes on the confirmed bounce, the risk is too high to enter the next half).

Stop Loss:

• Option 1: 2% below the trend line connecting the lows of the uptrend.
• Option 2: $0.20 below support, if it is on the dollar, move to 0.92
  
• if broker does not allow the stop to be placed because it is too wide, then use the maximum allowed value
• Move stop loss up weekly, never move it down, (change the stop from GTC to day on Friday then enter a new stop over the weekend.

Re-entry, when got stop out watch for bounce:

• redraw the trend line, see if you can make a confirmed trend line.
• watch for the bounce.

Position size, rule #1 is the strong rule.

1. each position is approx 10% of the entire portfolio
2. trade risk 1% of the portfolio