Stock Trading Best Practices

Last modified: June 16, 2013

Below are some rules of thumb I personally consider when trading stocks.  They are rules that I like to follow, but not hard and fast rules.  This post isn’t any kind of trading advice – please consult a professional financial adviser for that.

 

The Friday Rule (new as of 6/17/2013):

1. Under most circumstances, avoid opening new positions on Friday, due to the traditionally low volume.  Positions may be closed though, as needed.

 

Opening Long Positions (buying):

1. Buy stocks that are making a short-term dip, but are in an up-trend.  Trade with the trend.

Why: You’ll be taking advantage of short-term under-pricing, and the stock will generally continue profitably in its trend.

2. Buy only when RSI(2) is < 10 (meaning the very near term RSI is oversold). From Connors strategy.

Why: If you’ve already decided to buy, then it is best to buy when the stock has sold off recently. Effectively you’ll be buying a dip.

 

(more to come…)

 

Opening Short Positions (selling short):

1. Buy stocks that are making a short-term peak, but are in a down-trend.  Trade with the trend.

 Why: You’ll be taking advantage of short-term over-pricing, and the stock will generally continue profitably in its trend.

2. Sell short in the morning, about 30 minutes after the opening bell.

Why: In an up-trend mornings are typically (but not always) accompanied by a rise in prices, while afternoons will typically sell off.  Selling short at the high of the day is the ideal time.

3. Never hold a short position over an earnings report.

Why: A surprise upside earnings report may result in a gap up, which is especially devastating to a short position.

4. Never open a new short position on Friday.

Why: Friday’s typically consist of a slight upward rally on light volume. Opening a short trade on Fridays can put you immediately in the red, requiring further retreat to get back to profitability.

5. Sell only when RSI(2) is > 90 (meaning the very near term RSI is overbought). From Connors strategy.

Why: If you’ve already decided to sell, then it is best to sell when the stock has rallied to a peak recently. Effectively you’ll be buying a peak.

 

(more to come…)

 

 

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Andrew B. Bartels Joins the Ranks of Leading Executives

SCOTTSDALE, AZ, December 30, 2010 /Cambridge Who’s Who/ — Mr. Andrew B. Bartels, President and Chief Executive Officer of Spinnaker Capital Management, Inc. has been recognized by Cambridge Who’s Who for demonstrating dedication, leadership and excellence in finance.

Combining his talent in computer technology with his prior work experience in the banking industry, Mr. Bartels established Spinnaker Capital Management, Inc. to address the needs of special clients who wish to carefully manage their risk while profitably investing in today’s turbulent stock market. An investor himself, Mr. Bartels oversees all operations of his business, including an upcoming launch of the company’s proprietary market trading systems.

Having contributed his expertise to two previous venture startup companies, Mr. Bartels is the innovator and creative force behind three US patent applications. He has also previously appeared in industry magazines, as guest speaker at numerous conferences, and is an author of cyber security papers recently published by Cigre (www.cigre.org). His inventions have found application in multiple settings, including the healthcare, financial services, electric utilities, and manufacturing industries.

Mr. Bartels attributes his success to undying persistence and determination. He received a diploma from Mountain View High School in 1988, and is a former member of the Institute of Electrical and Electronics Engineers.

For more information about Spinnaker Capital Management, Inc., please visit http://www.spinnakercap.com.

 

About Cambridge Who’s Who

With over 400,000 members representing every major industry, Cambridge Who’s Who is a powerful networking resource that enables professionals to outshine their competition, in part through effective branding and marketing. Cambridge Who’s Who employs similar public relations techniques to those utilized by Fortune 500 companies and makes them cost-effective for members who seek to take advantage of its career enhancement and business advancement services. Cambridge is pleased to welcome its new Executive Director of Global Branding and Networking, Donald Trump Jr., who is eager to share his extensive experience in this arena with members.

Cambridge Who’s Who membership provides individuals with a valuable third party endorsement of their accomplishments and gives them the tools needed to brand themselves and their businesses effectively. In addition to publishing biographies in print and electronic form, it offers an online networking platform where members can establish new professional relationships.
For more information, please visit http://www.cambridgeregistry.com.

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Press Release Keywords:

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Link to original: [http://www.24-7pressrelease.com/press-release/andrew-b-bartels-joins-the-ranks-of-leading-executives-188982.php]

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