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Mikey's Short Term Trading Rules

1) Make up a list of stocks, commodities or ETF's to trade. This list should be names that have good earnings and high relative strength.
2) Monitor this list and throw out the weaker names
3) Buy only stocks or ETF's that are intermediate and daily up (green) and the market is Daily and intermediate term up (green)
4) Buy pullbacks on these stocks to the 20 and 50 day averages
Usually you get 4 to 6 20 day pullback buys and 2 or 3 50 day pullback buys in an intermediate term trend
5) More agressive traders can buy the 7 day average in the first 3 to 8 weeks of the uptrend.
6) Buy pullbacks not runups. A buy should not be easy or exciting but difficult and somewhat scary. DO NOT CHASE
7) Place stop at 5% below the buy price. Do not remove
8) Sell 3 to 5 days after the stock price takes out its most recent 2 week high with at least 15% gains
9) Uptrends that are 12 weeks or more may be ripe for a correction. The first 2 pullbacks to the 50 day are usually safe.
Intermediate term uptrends and downtrends generally last from 8 to 16 weeks with 12 weeks being the norm.
10) Shorting is a viable strategy in downtrends for experienced traders only. In general, reverse the above rules
11) Tweet Mikey @themarketshadow with questions or ideas

Monday, May 11, 2009

Mikey's Mission

I have followed this circus for the past 32 years. This blog is designed to shed the light of day on the system. I do not expect anyone to believe what I am saying and I do understand that. For some reason it is important for me to spread the word.
I do not receive any compensation for this blog and am not sponsored by anyone and do not have an axe to grind other than I do not approve of the way the system is run. I think their is a much better way of doing things and for those people who want to learn and pay their dues I am doing my small part to help. I do not believe that there is another blog out there telling it the real way that it is. I guess in some sense that is my small contribution to my fellow man.....Mikey


Order to buy DRYS at 5.75
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