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

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