Sunday, August 12, 2012

my trading tactics

 this is version 2 of my 21 march 2012 post (see: when do i buy - 1)

1. trading by indicators

1.1  buy when the following conditions exist (there are exceptions to this rule):

1.1.1 macd < 0

1.1.2 macd histogram < 0

1.1.3 macd histogram just changed direction .. . from negative/pointing downwards to positive/pointing upwards or ... when macd gives a buy signal

1.1.4  sts (at oversold levels) pointing upwards

2. range trading

2.1 buy when the price nears support (indicators 1.1.1- 1.1.4 need not be met .. e.g. macd may be > 0 ..etc.)

3. breakout trading

3.1 buy when the price breaches resistance (indicators 1.1.1 - 1.1.4 usually are not met as the price is already at its highest in the macd cycle (macd bottom to macd top) ... hence breakout trading is more risky compared to trading using indicators and range trading).

4. speculative trading

4.1 buy when a speculative opportunity presents itself (trading using 1-3 conditions do not apply) .. this is more like blind trading ... which i do only in very exceptional cases.

back to: my trading rules