Monday, March 19, 2007

Systematic trade Plan

Identify the stocks & assign points to it. While assigning points take in account the market pattern i.e. trading or trending & specify the points. Select first 5 stocks with highest points. Check out their weekly charts & filter it to 3 stocks. Use Bollinger Band & PL1/PL2 to assign the target.

Select the brokerage house to trade with for the particular stocks according to the brokerage system & expected result.

If funds permit, trade in Futures with strict sop loss system. Trade only in options whose stocks are liquid. Always trade options in 3 rd week of series, when premium is less & time value is also sufficient. Try to locate a stock who has bottomed out / topped during the first or second week & the reversal has started.

Watch the opening rates & take position when the market stabilizes after 10 minutes.Try to concentrate on single stock which looks better among 3 stocks selected