Warfield Management
Investment Solutions

Investment Solutions

Trading Rules

This website is primarily dedicated to intraday momentum traders, those who trade from the open to close of the trading day, and swing traders meaning those who will hold a stock position for one to three days.  In order to become an efficient and effective trader one needs to have a firm foundation in chart analysis.  We don't believe in trading news or earnings.  We only deal with the facts, meaning price, that is the price that the stock is presently trading at that moment, and volume, meaning the amount of the trades done that day. The stock charts provide all the facts needed to execute a winning trade.

As New England Patriots fans, we like to listen to Tom Brady and Bill Belichik discuss some of the strategies they use to win a game.  In an interview,  Tom Brady was asked how he prepared for each game.  Physically he  trained and worked out, ate right and made sure to get plenty of sleep.  Mentally he spent hours watching game reels so that he could memorize as many senarios as possible so that during the game he could react as the pictures in his head were playing out on the field.  The same is true of trading.  There are a finite amount of  trading patterns that we look for as our signal to enter a trade.  We want to make sure that we know and understand these patterns/pictures so that as they happen we are ready execute.

Here are a few simple trading rules and reminders.(For  a complete version of our trading strategies and philsophies use the contact us page to make your request.) 

Traders Mindset


  • Stay focused. 
  • Don’t look for opportunities.  If you don’t see them they are not there.
  • Protecting your account is #1.

 

Starting the Trading Day

  • What is the overall market trend?
  • How did the market/the stocks you plan trade finish yesterday?
  • Plays chosen the night before must be reassess for viability of the set up.
  • Begin to watch the price movement of your potential plays to see their pre market activity.
  • Draw all support and resistance lines.

     

     
    When Choosing/Entering Your Trade

     

    • Only trade in the direction of the trend
    • Is there a clear set-up on the chart? Is the volume 500K+?
    • What is your objective for placing this trade (how many days, price target, etc.
    • Where is your exit (sell (profit target) and stop (risk limit) price)?

     

     

     
    Sticking to the Stop

     

    • When your stop loss has been triggered GET OUT of the trade.
    • When stock hits your stop, it is not a failed trade, you haven’t loss.  You have executed a good trade based on firm technical chart analysis.

     

     
    Ending the Trading Day

     

     

    • Take a short break ½ hour to an hour.  Long enough to relax and clear your mind, but short enough that the information is still fresh.
    • Log all your trades for the day.  If a play fails, was it the entry, target, stop loss, trailing stop, entered too late/soon, exited too soon/late, ignored stop.
    • Make a preliminary list of the next day’s plays at the end of the day and come back later to confirm it.

     

     

     

     

    Helpful Websites


    www.investorwords.com
                        www.clearstation.com

    www.investopedia.com                      www.yahoofinance.com

    www.bigcharts.com                            www.briefing.com 

    www.stockcharts.com                          www.barchart.com

    www.bullsector.com                           www.wallstreetjournal.com

    www.investor.com                              www.smartmoney.com

    www.earnings.com                             www.forbes.com

    www.bloomberg.com                         www.msnmoney.com

    www.stockfetcher.com                       www.investorsdailyedge.com

    www.quote.com                                 www.nasdaq,com

    www.ise.com                                      www.seekingalpha.com

    www.mrswing.com                             www.equitytrader.com