Checklist of When to Buy or Sell Stocks

What to buy:
-buy only stocks whose macd is above zero
-buy only blue chip stocks
-buy only when the stock is above the rising 10, 20, 50, 100, & 200 day moving averages
-buy only a stock that has a favorable risk reward ratio



When to buy:
-buy only when the general market is trending up
-buy the stock when it breaks out above a major resistance area
-buy the stock when it crosses above the rising 20 day moving average
-buy after a stock bounces from a correction, when it closes above the highest high of the previous day's close.
-buy after a stock bounces from the 50 day moving average after a correction


What to do after buying:
-place a stop loss
-sell if stop loss is hit
-hold if the stock moves in the upward direction
-sell 15% of position if the stocks moves 5% above your cost, use the profit as buffer if the stocks immediately goes back and hit your stop loss.
-if the stocks continuous to rise after buying, activate your trailing stop. Raise this stop as your stock rises
-Don't ever sell unless your trailing stop is hit

When to sell:
-sell if your stop loss is hit after buying
-sell if your trailing stop is hit
-sell if you see a bearish reversal pattern OR
-OR wait for the candle confirmation the next day if the sell order is to be executed or not
-OR ignore any bearish patterns and let the stock correct and sell only if the trailing stop is hit