Does Your Stock Trading System Answer These Questions?
Are you playing the strongest groups? Do you play the market leaders within that group? Do you know what momentum truly means?
Do you watch for volume expansion as the stock breaks upward or downward? Do you understand the significance of contracting volume?
When you trade is working out, do you pyramid up with the momentum (add to your position through margin)?
Do you hold your strongest stocks the longest? Do you sell your stocks when they quit moving up or begin to act sluggish?
Can you tell when a stock has gone too far too fast?
Can you recognize momentum and how it is expressed? Do you know the signs of a vulnerable stock?
Do you know the difference between continuation sequences and reversal patterns? Do you understand the significance of consolidation boxes or zones? Do you know how to utilize the support and resistance points of your favorite stocks?
Do you know how to identify developing momentum movement based on moving averages and trend lines? Are you equally comfortable playing both the long and the short side of the markets?
Do you know how to protect your initial capital and new found profits through the judicial use of stop-loss orders? Do you know where and how to place them so the specialists will not rob you blind?
Do you know how to tell when you have mastered your system, the markets, and your emotions? Do you have safeguards built into your money management system?
