Module 7: Final Thoughts (Done)

Question 1

Below are David Green’s final thoughts on things you should keep in mind when trading.

Answer 1

• A/D list (by dollar amount, not by percentage)
• News that day such as unemployment, FED, GDP, employment, nonfarm payroll, company takeovers
• Note that most trading will occur in the first 60-90 minutes of the day (high volatility)
• Don’t trade between 11:30 am and 1:00 pm because people are on lunch - so go get lunch
• When moving your stops up (in a long position, for example) placing them under an EMA is a smart move because a break of an EMA can validate the end of a trend and you’ll get out
• Other than trend trades, most other trades you perform will happen quickly
• Do not trend trade after 3 pm
• Pay attention to new news such as CFOs or CEOs coming or going from companies (as David Green says, “where there’s smoke, there’s fire)
• Do not have any positions going into major events - you might as well be gambling
• Be careful with biotech stocks, you don’t want to be short and then chase it up losing it all