How To Trade Stocks Without Emotions(6)

When in doubt stay out.


Here are the rules I have followed over years. Read on and these might help you as well.

1) Buy strong stock from a good sector when they clearly breakout.

The clear breakout will weed out a weak market.

Double sure the breakout on a closing basis.

The only other times to buy it will be when it is down 15% (25 to 30% for a speculative stock) or it closes positively after a long down turn.

By long I mean couple of weeks.

Spend time on it before buying, when in doubt stay out.




By Jay Deb