Before Buying
Check the markets and trade in the direction of the prevailing market trend.
Check the industry - are the stocks showing signs of topping out or bottoming?
Make sure the industry is top ranked.
Look at the weekly scale for any threatening chart patterns.
Find another chart pattern in the same stock and see how it performed in the past.
Check the indicators.
Check how this industry is doing compared to others.
Wait for price to turn up before buying.
Get a quote before trading.
If the stock is up too much intraday, skip the trade.
Look for overhead resistance.
Look for underlying support.
Avoid any stock showing a dead-cat bounce within the last six months.
When to Sell
The stock is about to hit your stop.
A bearish chart pattern has broken out downward.
The stock has closed below an up-sloping trendline.
Price has hit the target.
Stocks in the industry are topping out.
The market is up but the stock is down.
Indicators are diverging from price.

Trading Checklist

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