The 10 Commandments

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1. Figure the direction of the broader market

2. Find the hottest sectors

3. Find the top performers there

4. Evaluate fundamentals. Check for relative strength

5. Look for a sizeable prior trend (30 to 100% in the preceeding weeks/months) followed by some form of basing action

6. Check for news/earnings which translates into good price action

7. Use suggested patterns to enter and place a stop based on technical levels. This shouldn’t be more than 8 to 10%

8. Exit in tranches if your stop is not hit. You may trail the stock if it starts basing again and shows sustained momentum.

9. Allocate money according to your portfolio and risk appetite. Do not risk more than 2% of your account on a single trade.

10. You may re enter if you can determine that the stoploss was taken out due to noise and not adverse price action