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Trading/Investing Guideline:
Important notice: always use these figures as
guidelines, and realize gains and losses according to your personal risk
parameters. Furthermore, we recommend researching the type of stop order
that is appropriate for your specific style of trading.

The oldest rule of investing is that “the higher the
risk, the higher the return.” Highly volatile stocks have higher risk
rating. With that said, the Swing Trader Bulletin Picks with a “4th
quartile” risk rating are the riskiest stocks. However, these stocks
tend to produce great returns as compare to those with a lower risk
rating.
For a new potential Swing Trader Bulletin Pick to be
entered in the Swing Trader Bulletin Portfolio, the stock must be
"TRIGGER".
However, if a new potential Swing Trader
Bulletin Pick initially gaps higher (ABOVE the trigger price) by more
than 5%, it is NOT considered for purchase.
The same rule is
applied for short-sell. That is, if a new potential short
candidate initially gaps lower (BELOW the trigger price) by more than
5%, it is NOT considered for short-sell.
Note: the set-up(s) will be automatically remove
from the watchlist if the stock pick didn't trigger after 5 trading
sessions and/or move above/below the pre-set stop loss point.
Capital preservation is the first step towards
prolonged profitability. An exit strategy (or stop-loss point) is
assigned to each and every Swing Trader Bulletin Pick to reduce risk and hence preserve capital.
At least 2 targets are provided for every new
potential Swing Trader Bulletin Pick. When the stock had achieved
its first target, a portion (usually about 75%) is recommended for sale
- profit taking in other words. The stop-loss point will also
raise on regularly basis as the stock shows strength against the overall
market.
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