Strategy Examples of 10 Trading Principles
Strategy Examples of 10 Trading Principles
Jul 13, 2007
What a prize. I don’t have the occasion to tie in as many revelant, organized links from our content as I do today.
Yesterday Dr. Brett Steenbarger of TraderFeed put together a list of 10 Principles of Short-Term Trading.
Notice how articulate Dr. Brett is with his plain English description of ideal trading patterns? Quite succinct. This is the point I made yesterday.
A great coach always reminds his/her players of the fundamentals at the best times. In this summertime period now is a great time to review a few of these principles as they apply to Trade-Ideas strategies we’ve posted.
1) Strength Begets Strength and 5) Strong Tests of Prior Market Highs or Lows Tend to Persist
Related Trade-Ideas posts:
- Strategy Session: Persistent Strong Closes
- What’s Above the 20 Day SMA and Up 5 Days?
- Strategy Session: Gaps Above Previous Days High
- Strategy Session: Objects in Motion Stay in Motion
- Strategy Session: Price, MA Crossovers on Strong Volume
- Strategy Session: 8-Day Highs Evidence of Momentum effects
2) Weak Rises Tend to Reverse and 4) Weak Tests of Prior Market Highs or Lows Tend to Reverse
Related Trade-Ideas posts:
- What to Do When You’re Suspicious of Low Volume Rises in the Market
- Strategy Session: Exhausted Rallies
- Strategy Session: Moved Up on Lite Volume? Fade It.
6) Weak Pullbacks Following a Strong Move Will Reverse
Related Trade-Ideas posts:
- Strategy Session: Sequence Analysis
- Strategy Session: Catching the One That Got Away
- Stocks Fit Enough for a Comeback
9) Important Market Moves are Often Triggered by Intermarket Events
Related Trade-Ideas posts:
- Be Prepared for Tomorrow’s Fed Decision
- Strategy Session: The Fed Watcher
- Strategy Session: The News Watcher
7) Markets Are Dominated by the Sentiment of the Largest Participants
Related Trade-Ideas posts:
- Strategy Session: How to Hunt with the Pack
- Strategy Session: Take Advantage of Other Traders’ Fears
- Stock Sellers May Be Overreacting
I notice that the strength and momentum strategies in the first set contain the largest amount of examples. That’s an interesting observation and a belief perhaps in the power of the bull and our optimism.
There’s also a common thread through many of our strategy ideas: the seed comes from Dr. Brett Steenbarger – a frequent and appreciated source of inspiration. Have a great weekend.