For those who used to read my old site you know that I'm a huge fan of what's come to be known as the "Dummy" style of trading. I wrote a lot about it back in the day. In my mind the tenets of that style are, to quote myself (there's a lot more detail over there):
- Keep It Simple, Stupid (KISS)
- Trade with the trend
- Trade only active, liquid stocks
- Define any risk
- Manage risk by adjusting a stop loss order.
- Always enter a protective stop loss order
- Always trade with good reward-to-risk profiles
- Have a well-defined plan and stick to it
At some point several years ago MaoXian re-did his site and the original lessons were lost. Well I've just discovered that the original 'Trading for Dummies' lessons can be accessed via the Wayback Machine. I highly recommend reading several of the trade examples / lessons. I still use concepts from those lessons all the time and that's partially why you'll see so many range contraction scans and alerts here on SwingTradeBot.com.