Trade Management Guidelines for the iStock Pick.

ENTRIES FOR LONG POSITIONS

A trade meets entry requirements ONLY if it trades over the required number and that price that prints was ‘in the market’ at the time (not outside the bid or offer).   

*If the stock gaps over entry zone, the play will be considered invalid.

ENTRIES FOR SHORT POSITIONS

A trade meets entry requirements ONLY if it trades under the required number and that price that prints was ‘in the market’ at the time (not outside the bid or offer).   

*If the stock gaps under the entry zone, the play will be considered invalid.

*If the stock does not meet the required entry on the day the play is posted, it will not be carried over as a valid play for the next day, even if the posted stop price was never reached.  If the play is still a desirable entry for the next day, it will be mentioned in the next day’s video.

STOP LOSS FOR LONG POSITIONS

For long positions the stop loss is placed under the entry bar low, prior bars low, or pivot low, whichever is lower.  

*Whenever a stock breaks the defined stop price before hitting its entry price, the play will be considered invalid.

DISASTER RULES FOR LONG POSITIONS

After the first decline and reversal, on the 5 minute time-frame, the stop loss is placed under the low of that day. Manage the trade according to section; TAKING PROFITS.

STOP LOSS FOR SHORT POSITIONS

For short positions the stop loss is placed above the entry bar high, prior bars high, or pivot high, whichever is higher.

*Whenever a stock breaks the defined stop price before hitting its entry price, the play will be considered invalid.

DISASTER RULES FOR SHORT POSITIONS

After the first advance and reversal, on the 5 minute time-frame, the stop loss is placed above the high of that day. Manage the trade according to section; TAKING PROFITS.

TAKING PROFITS

Apply these guidelines on the time-frame used to enter the trade.

Trail stop pivots in-between the entry and target price.

If the range of the bars expand and form a REE before reaching the target, the position is closed on the REE.

If the range of the bars contract as prices move in to the target area the position may be held for a larger gain, if the pattern suggests doing so.

If prices form a failure pattern prior to reaching the target, the position is closed on the failure pattern.

EARNINGS CALENDAR

If a trade is still active at the close of the day prior to an earnings report for the company, then the trade should be closed.

Click on Earnings Calendar below for a list of companies that are expected to release earnings this week.