There are following rules that I follow:
1. At time of decision compare criteria for chosen stocks and choose one best
2. Criteria is: longer moving average results, shorter moving average and volatility
3. If the chosen stock is the best, but is below 50 day moving average, all goes to cash (or SHY if you prefer).
4. If a chosen stock during the month closes below 50 day moving average for two consecutive days, convert all to cash (or SHY if you prefer)
For obvious (copyright/trade secrets) reasons, will not get into details what I do, but after a bit of research, you might be able to repeat results (if you want to do it). Let me know if you’re successful!
Simple, isn't it? Very clear signal what to buy, very clear signal to sell when in danger! And, my allocation is, considering I’m using etf’s 100% to chosen one.
My next blog will be on September 30th with new pick, around 3:30 so you can see it (and I have time to actually do the trade). I will provide free picks for next 6 months. After that period, if you like results, there will be charge for the pick, or (bigger charge!) to purchase method. By-the-way, did you check results from previous years – if not, please see one of the previous blogs.
Disclaimer: I'm not suggesting in any way that you should do what I'm doing. If you do it, this is your sole responsibility! All losses that can (and will!) occur using this model is your sole responsibility! Trading is risky business and can result in serious loss, and I shell not be held responsible for it. If you have any troubles understanding this disclaimer, please reply to this post.
© 2012 Created by Skot Kortje.
You need to be a member of Stock Trends Traders Network to add comments!
Join Stock Trends Traders Network