24 October 2007

Summary of my call / put strategy

What are the things most important to my decision making of whether to enter a trade or not ? These are the most crucial factors :

(1) Trendline - daily, 15min
(2) Breakout ( i call box up or box down based on Darvas's Box Theory)
(3) MACD (5,35,5) - daily, 15min, 5min must all sync in 1 direction
(4) MA20 cross MA50 for Daily & 15min charts
(5) Price above or below MA20 for 5min chart
(6) Extreme price swing in 1 night
(7) Candlestick patterns -esp. Bull/Bearish engulfing, Doji, head & shoulder, double top & bottom

I do look at Bollinger band occassionally to look for outliers that can cause an immediate pullback or rebound (but rarely). I do look at volume sometimes to gauge the strength of the breakout (rarely also).

I dont look at news (except earning announcement date), i dont care about other things. I only look at 7 counters permanently now, and i dont care about the rest of Nasdaq or NYSE stocks (unless my friends told me to take a look at).

These are the only 7 counters I look at everyday :

(1) GOOG
(2) GS
(3) BSC
(4) BIDU
(5) AAPL
(6) MA
(7) RIMM

They are all highly volatile stocks, thus you may say I trade volatility essentially.

I guess there's nothing much to say about my strategy any more.

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