Swing trade ideas for Aug 4th-8th: GALT, EDAP, HZNP, EHTH, ABTL, HIL, WWWW, VCRA,SREV, OCN, ASGN, GNW, HLF, ADNC, QUIK, YRCW
RULES FOR SWING TRADER
Rule 1: Price has memory.
What happened the last time a stock traded at a certain level? Chances are it will happen
again. Watch the tape closely when price returns to a past battleground. The prior action
can predict the future.
Rule 2: Stand apart from the crowd at all times.
Trade ahead, behind or contrary to the crowd. Be the first in and out of the profit door.
Be ready to pounce on ill-advised decisions, poor judgment and bad timing.
Rule 3: Buy at support. Sell at resistance.
Trend has only two choices upon reaching a barrier: continue forward or reverse. Get it
right and start counting your money.
Rule 4: Avoid the open.
Rule 5: Control risk before seeking reward.
Wear your market chastity belt at all times. Attention to profit is a sign of immaturity,
while attention to loss is a sign of experience. The markets have no intention of offering
money to those who do not earn it.
Rule 6: Big losses rarely come without warning.
You have no one to blame but yourself. The chart told you to leave, the news told you to
leave and your mother told you to leave. Learn to visualize trouble and head for safety
with only a few bars of information.
Rule 7: Bulls live above the 200-day moving average while bears live below it.
Are you flying with the birds or swimming with the fishes? The 200-day moving
average divides the investing world in two. Bulls and greed live above the 200-day,
while bears and fear live below. Sellers eat up rallies below this line while buyers
come to the rescue above it.
Rule 8: Perfect patterns carry the greatest risk for failure.
Demand warts and bruises on your trade setups. The prettiest patterns set up the most
painful losses. If it looks too good to be true, it probably is.
Rule 9: See the exit door before the trade.
Assume the market will reverse the minute you get filled. You’re in big trouble when it’s
a long way to the exit door. Never toss a coin in the fountain and hope your dreams will
come true.
Rule 10: Don't try to get even.
Trading is never a game of catch-up. Every position must stand on its merits. Take your
loss with composure, and take the next trade with absolute discipline.
Rule 11: Don't trade over your head.
If your last name isn't Buffett or Cramer, don't trade like them. Concentrate on playing
the game well, and don't worry about making money.
Rule 12: Don't forget your discipline.
Learning the basics is easy. Most traders fail due to a lack of discipline, not a lack of
knowledge.
Watchlist for Swing trade:
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| EHTH |
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