Thursday, October 31, 2013

Long-term Trading Rules

Update 5/6/2014: The trading plan outlined in this post has been revised. See "Revised Long-Term Trading Plan" for details.

I recently posted an essay titled, tongue firmly planted in cheek, "The I Hate Stocks Trading Plan".

The title may have been tongue in cheek but the strategy, based on 12-month moving average crosses, was intended seriously.

I am implementing the strategy in my own accounts, beginning Friday, Nov. 1, as a vehicle for longer-term trades.

The Turtle Trading signals that I use are shorter-term vehicles. My positions last from weeks to a few months, and never long enough to qualify for the lower long-term capital gains tax rates, or for dividend income.

My hope is that my new, longer-term strategy will remedy that lack.

The new trading rules for longer-term trades can be read here.

My schedule for trading is to screen stocks on the last day of each month and make the trades on the following trading day. For this first batch, I'll be looking at today's close (Oct. 31) and opening the positions on Friday (Nov. 1).

I don't intend to do individual analyses of each symbol but shall post a monthly accounting of my longer-term trades on the first trading day of each month. The one for November, to be posted on Friday, will be titled "November Long-term Trades".

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.
No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

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