Some Upsidetrader Guidelines For 2016

here to help 1

Hopefully this will be of help to new and old subscribers alike. I think also that its good for newer traders.

1- Try your best to stay away from the market for the first 30 minutes, I call that period the “wild wild west”, you will usually get a better price if you wait for the dust to settle, that goes for longs and shorts. My experience tells me that you will get a better entry if you are patient, strong stocks usually pull back to a more “buyable” level, same with short ideas. If we miss an idea that’s OK there are 3000 stocks and I will find another one.

2- I will always give advice on exiting a recommendation via email alert and on the chat room, so none of you will ever miss anything. I usually recommend the sale of 1/4 to 1/3 of your position when a stock is moving higher. Example, if I recommend to buy a stock at $40 and it breaks out and trades to $44-45 take 1/4 to 1/3 position off the table. Some stocks will move higher after the partial sale, that’s OK you will still have a 3/4 or 2/3 position remaining. Always raise your stops as price goes higher, I will telegraph that to you as well. I will guide you on all of this.

3- After I take a partial gain I will usually raise our stops so we are protected.

4-  Rarely will I ever average down in a stock and rarely will I chase a stock unless the technicals tell me to.

5-  We will have periods where we have a good run and then things can get a little cooler (always short lived), when the market is in a strong uptrend we will be mostly long, when the market is in a downtrend we will have more cash and maybe some short exposure.

6- Be diversified, meaning have exposure to as many names on my list as you can. Maybe 5-10% per idea is a good start. You don’t want to be overweight in one idea because that could be the one that fails.

7- I will trade opportunistically and I will change my mind based on events. Good traders change their mind.

8- I shun conventional wisdom and NEVER listen to the pundits, I think the financial media is dangerous to a trader’s health.

9- I never watch the financial media during trading hours, or ever for that matter. Turn it off, you’ll be surprised and pleased with the change.

10- Economists never traded and they are usually wrong.

11- – Don’t EVER buy a “tip”, it’s like borrowing someone’s Chapstick, you don’t know where it started.

12- JP Morgan said” I will never buy at the bottom or short at the top, but I will make my money in that 60% area” I feel the same way.

13- The market is the one place where following trends and not making them is cool.

14- – STOPS- —as you will see on the P&L, I always have stops for each stock. I want you to honor those stops to the best of your ability, HOWEVER, stops are not an exact science, merely a level to protect yourself, so I usually give the stop a little ” wiggle room” depending on the action of the tape.

I hope this helps a bit. They are basic rules to follow. Also I am available to all of you, if you ever have questions on your portfolio, a particular, stock, just reach out by email. I am happy to help in a anyway I can.  The market coud get scary in 2016, so reach out to me if you need to.

Good luck in 2016 folks




Previous Post
No 2016 Predictions, But Here Are Some Possible Scenarios
Next Post
Another Year In The Casino

Recent Articles