What are your trading rules? Last Month we found out that folks with trading rules and stuck to them were profitable, folks that didn’t…… didn’t Here are Mike Coval’s set of rules….. Buy Rules: http://www.incometrader.com/buy_rules.htm Sell Rules: http://www.incometrader.com/sell_rules.htm

Rules for Buying Stock The stock should have a positive phase 2 score. This means an F/E score of 3.25 or better and a Price Pattern of 2.50 or better. The stock should trade in an up trending industry. Sideways is ok for covered calls but never a down trending industry. The stock should be showing 3 green arrows. These come from the 30 day moving average, MACD's and Stochastics The stock should be in an uptrend The stock can be in a sideways trend as long as the stock is showing an increase of volume.

Rules for Buying Stock A few extras: NEVER buy a stock in a downtrend - No one is good enough to guess the bottom of a stocks trend. Don't buy a stock near its resistance level if it does not have an increase of volume. Positive news and increasing volume are bonuses. With the proper technique it can be a simplified process to identify buy signals. Just follow the rules and do not try to out think the markets. 

Rules for Buying Stock

Rules for Buying Stock

Trading Game Form 10 Teams Using your trading rules, decide when to buy and sell stocks. You have up to 1000 shares to trade You can buy or short the shares Each day each team can make a trade The commission is 14.95 per trade To make a trade, hold up your team’s card and state where it is a buy or sell as well as number of shares Each team should keep a record of the trades and the day of the trade

Trading Game Let the game begin

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And the results are……..