Its a dream for everyone to make money trading in stocks but very few master it.There are some proven paths to learning the skills and making money.Its better to study them before taking a plunge in stock trading.

TRADING RULES

 Some trading rules to follow 

1.Moving Average crossover

if shorter term moving average crosses above the longer term moving average on closing basis ,its buy signal

some moving averages which  I like to follow are 

10 day EMA/  50 day SMA

15 day EMA/150 day SMA

10 day SMA/200 day SMA

50 day SMA/200 days SMA

to add to this  and make it more robust 

we can add MACD  and  RSI .If MACD is showing positive divergence , and RSI is above 50 but below 70 long position can be taken.

of course the general market should be in positive territory.

Sale position to be taken when the short term crosses below the long term moving average again.if the RSI goes above 70 then also profit can be taken.

Stop loss to be kept at max 1% of the capital.

2. Turtle trading rules

it basically covers 2 trading systems

system 1- 20 days to determine the high and low prices

Buy when the price exceeds the highest high of last 20 days ,provided 50 days MA is higher than 200 days MA. Vice versa for short

10 days low for exit long

system 2- 60 days to determine the high and low prices

Buy when the price exceeds the highest high of last 60 days ,provided 50 days MA is higher than 200 days MA. Vice versa for short

20 days low for exit

ATR channel breakout

7 ATR (average trading range + 350 days MA) -channel top

350 MA-3ATR- channel bottom

A long trade is entered on the open if the previous days close exceeded the top and short for vice versa

Bollinger breakout

350 days MA +/-2.5 Standard deviation .long trade entered if previous days close is above the top of the channel and vice versa.

DONCHIAN trend system

20 days breakout for entry and 10 days breakout for exit.

filter is 25 days EMA/350 DAYS MA.

STOP is 2 ATR

DUAL MOVING AVERAGE

100 days and 350 days ,long trade is entered if 100 days MA crosses over 350 days MA.

TRIPLE Moving average

150 days 250 days and 350 days

150 days crosses over 250 days and both are on the same side of 350 days ,if its higher then long trade to be entered.

sudhir kumar Blog, Stocks

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