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*30 Minute Trading Rule:
In order to prevent whipsaws, we use a 30 minute trading rule. This means that, as a
general rule, we are going to "sit on our hands" during the first 30 minutes of
trading. Additionally, if after the first 30 minutes of trading the range of the stock
pick is within the stop and buy/short boundaries presented, the trade recommendation is
valid. If the stock's range is outside of the buy/short and stop boundry, the trade
recommendation is VOID. E.g. if the recommendation is "Buy a print of 10.25, with a
stop of 9.95," and the stop trades up to 10.50 during the first 30 minutes, we would
pass on the trade. Similarly, if that stock were to trade down to 9.90 before 10:00, the
trade would also be void.
There is no 30mn rule on limit orders, but if price gaps out of the buy/stop range the
trade is void.
Past Performance is not a guarantee of future returns.
Trading is risky. Trading entails unique risks, so get with your broker and do your
homework before you take any trades based upon this or any model, newsletter, or trading
service. Never trade with money that is necessary to your near- or long-term financial
well-being.
None of the ChartSmarts Newsletters should be construed as a solicitation to buy or
sell any security or commodity. We aren't your advisor and we aren't your broker. Any
decisions you make are yours alone.
Though we do keep a hypothetical valued account track record, none of the performance
referred to should be construed to be that of an actual account. Performance is not based
upon back testing, and it does not represent an actual trading account unless explicitly
stated. From time to time, we'll be trading the same ideas that we're discussing here. We
make every effort to insure that we and our associates not "front-run"
subscribers, or to otherwise affect the price of securities that we hold or discuss. Be
aware that sometimes we, or our clients, family, or associates, will hold the same
securities that we discuss in ChartSmarts for good reason; we believe in our technical
analysis. Occasionally, our trading actions may not be the same as those discussed in
ChartSmarts, for a variety of reasons. We will never attempt to manipulate the price of
any stock for any reason. |
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