July 2, 2016

Rules I live by/ my chrome homepage

Basic rules

  • Identify the trend using peak/ tro method
  • Keep risk per trade at 1% of capital
  • Cut losses fast and let profits run
  • OK to take lots of small losses

Trading rules (long)

  • Trade breakouts from resistance areas
  • SL at low of breakout candle or swing low or low of higher degree candle
  • Delivery: scan for top gainers or stocks at 52 week highs or lifetime highs
  • Focus on setups with minimal risk
  • Ignore trade if multiple resistances are nearby

Time frames

  • F&O : intraday - 5 min; positional 15 min / hourly charts
  • Short term delivery: daily charts
  • Long term delivery: weekly charts

Price action / points to consider:

  • Bar completion
  • Location of breakout bar in context of bigger trend
  • Significant bars - tall bars, pin bars, engulfing / reversal bars etc
  • Fast move in opposite direction
  • Immediate reversal of breakout bar
  • Consider reverse trade on breakout failures

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