Chrib's Trades: Important

Significant revisions to How To Trade My System. Please read it if you plan to trade my ideas, or if you are trying to develop (or don't understand the concept of) a trading system.

How to Trade The Ideas

Please read my full post on this topic: How To Trade My System

My ideas are stocks I think might break out in the coming days. In most cases each idea may be traded in one of two ways: Aggressively or Conservatively. Aggressive traders should refer to the table's Exit A column, and Conservative traders the Exit C column.

Entry: The breakout price level is indicated by the "Entry" column. My system buys on the breakout, not in anticipation of a breakout; thus, a stock is only purchased if it's trading at or above the Entry price.

Exit A/C: Depending on whether you plan to trade in an Aggressive or Conservative style, use Exit A or C. This is your initial stop-loss price. If the stock should trade below this price and you own it, SELL THE STOCK. You may also combine the two exits by making Exit C the initial stop-loss and, in addition, sell at market if the stock goes below Exit A on a closing basis.

Order Entry: Use stop-limit buy orders through your broker to buy the stocks, and stop-limit sell orders once you've purchased the stock to protect your capital in case the stock moves against you.

Chrib's Trades

Sunday, August 24, 2008

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