Trading Plan

Your Trading Plan is critical to your success. There are a million ways to make money trading in the market, but what works for you.

Establishing rules helps remove the emotional element from trading. The clearest point of a trade is when you enter your trade

Trading involves risk, but there is a business risk and a unacceptable risk. I first establish a point to admit I'm wrong and walk away. Currently it is at -5% loss on a single position. This is to be no more than 2% of the overall account value - Dr. Alexander Elder Come Into My Trading Room

Time Frame. I have a full time job and my trading system is based on End Of Day data

Markets. I am currently trading in the stock market. The futures market will be next as my capital asset base grows

Entry in the market is using Market Orders. When I decide to either enter or close I want to be filled. There have been times that I have missed a profitable trade, because I was skimping on the entry.

Investor's Business Daily
+80 EPS
+80 RS
>0 ROE
<50% Total Debt

Trading above 20 Day EMA

MACD - Moving Average Convergence / Divergence
Above zero good. Below zero bad

Bullish Moving Average Crossover
MACD moves above 9d EMA (trigger)
Bullish Centerline Crossover

IN or OUT?
Bullish
Uptrending 20-day EMA
Price location above 20-day EMA serving as support
20-day EMA above 100-day EMA
A stock in a trading range breaks through resistance on volume surge
MACD moves above its 9-day EMA
MACD moves above the zero line into positive territory
Positive divergence of MACD-Histogram centerline crossover into positive territory

Positive divergence of stochastic oscillator above the 20% line
All buy signals are more significant if confirmed by other buy signals
All buy signals are more significant if confirmed by a volume surge
A volume surge is particularly important when a stock is coming out of a trading range

That is a basic setup and now how to position my line:

Risk Setup. I risk no more that 2% of total portfolio on any single trade and will stop trading when I have lost 6% for the month

I have added a Time Stop of 7 Trading Days. When I enter a position I have 7 days for it to make money. If it does not then it's time to move on and I close out