Stock Check List for Success

1.  Phase 2 = 2 Green Arrows Up

        MG-Zacks – 3.25 +

        Mkt Guide – 3.25 + [Bad – 2.75

        Zacks – 3.25 +     Neutral – 3.0]

        Price Pattern – 2.5 or higher

        Volatility – 2.5 or higher

2.  Phase 1 = 5 or more Green

3.  ERG = 80 or Greater

4.  Big Money Entering

     a. Volume (Commitment) – 150%

             or greater OR

     b. Acc / Dist Current = 60+

             (Don’t need both)

     c. Sideways movement REQ Volume

5.  Big Chart - Institutional Money 

           moves the stock 50% or more

           Green - $ in 

           Yellow - Transition time 

           Red - $ out

6.  Group Rank – 70+  or

         Stock & Group “Trending Up” 

7.  Ck Highlights & Performance Charts

8.  Insider Trading – 5+- Check it out

9.  Valuation Analysis – Sticker Price

10.  News – Pass (No bad news)

 

 

 

 

 

 

 

 

 

 

 

 

Call Option Check List

1.  Trend must be Positive

2.  All Green Indicators

3.  Volume is Increasing

4.  Industry Group is Increasing

5.  Find the Stocks Trading Pattern

       Time and Distance as it bounces

       off the 30 day moving average

6.  Choose an Expiration Month 2-3

       weeks beyond the stocks trading

       pattern time period

7.  Choose a Strike Price using the 

       average trading pattern move      

       above the 30 day moving average

8.  Use Options Calculator

 

Plan Your Exit Strategies

1.  Target Price or Resistance is Hit

2.  30-40% Profat ! – Take IT!

3.  MACD & Stochastics turn lower

4.  Stop Loss hits at 30-50% or it   

     Breaks thru Support. Max loss 50%

5.  Sell half when you double your $

6.  Sell Orders are ranked & they get   

     filled in this order:

     a. Market Order

     b. Day Limit

     c. Limit Order Good Til Cancelled

     d. Stop Loss

    

    

    

    

 

 

 

 

Put Option Check List

1. What is the Market Forecast

       Bearish or Bullish ?

2. Choose a Stock - Waiting for the

       right stock & not trying to force

       a stock into the Put Mold is key

3. Check the Charts

       a. Look for the weakest down-

       trending stocks in weak industry

       groups

       b. Look for stocks that are just

       breaking thru support or are

       trading consistently BELOW

       their 30 day moving average

       c. Look for a declining MACD just

       as the stock reaches resistance

       d. Weak volume on rallies &

       increasing volume on down days

       e. Look for a poor Phase 2 score

4.  Choose Expiration Date

       a. Define 12 month trading pattern

       find high points then 1st low point

       b. How many weeks did it take?

       c. Add them up & average

       d. Choose Date 2-3 weeks beyond

5.  Choose a Strike Price

       a. What is the expected move of

       the stock?

       b. Check for best return %

6.  Plan Your Exits

       a. Set Stop Loss at 30-50%

       b. Sell when strike price hits

       c. Sell if stock does not reach

       strike price before starting a

       bounce higher on an increasing

       MACD
7. Place order w/ 30-50% Stop Loss
8. Monitor your positions

Money Management Rules

1.  Research 1 hour / day

2.  Strong Buy – 3 Green Arrows  

        with Commitment

3.  STOP LOSS… STOP LOSS…!  

     a.  “Breathing” pattern past 2 wks

     b.   Put Trailing Stop Loss in

             place 3% below support or

             tighter if you don’t want to  

     c.   Putting a Stop Loss helps

             minimize risk & maximize the

             option play

4.  Exit Strategy - View 4 Sell Signal

     a.  2 Red Arrows – Keep moving

             stop loss up

     b.  2 Red Arrows & crosses below  

            30 day moving average - Sell

     c.  3 Red Arrows - Sell

     d.  Know what you expect when

             entering the trade... or ...

             Don't Trade it! 

5.  Never loose more than 1-2% of  

        TOTAL account on  any one  

         trade.  How much can I loose  

         & still sleep?

6.  Hot Line to Verify  800-468-5902

7.  NapaInvestoolsMarketSamurai@

         yahoogroups.com

8.  Daily - 1 Great Stock Find

9.  Weekly - 3-5 Great Trades

10.  Monthly - $20,000 Growth

 

 

TT’s Mission & Goals

 

1. College – For Dad’s 3 Girls

     “Scamp, Bear, the Big Girl”

2. Traveling back to Europe

3. Financial Security by age 60

4. Work at Office 4 Days /Wk

      Tapering down to 3 days

 

INCOME GOALS

2006 - $140K    (7 Mos)

2007 - $240K Add'l Income

2008 - 2010 Make & Spend Lots

2011 – $1Mil Value

2016 - $3Mil Value

 

 

  

DISCLAIMER
* NapaINVESToolsMarketSamurai & INVESToolsUG is run for and by students of the INVESTools Method.
* We are neither stockbrokers nor investment advisers.
* Members may use web sites which belong to any of the INVESTools Brands: Business Week or Success Magazine.
* The information provided by members is obtained from various sources that have been deemed reliable, however, the information is not guaranteed to be accurate or complete.
* Members do not make recommendations on stocks or strategies.
* You are responsible for making your own decisions regarding any trade.
* Stocks or options may be discussed for educational purposes only.
* Members are expected to refrain from discussing products or software that conflict with or are in competition with the INVESTools Method.
* We expect that you will be honest in your education level. If we find out otherwise we reserve the right to remove you from the group.