Daily Discipline/Routine

1. Look at stocks currently in our portfolio

-Are there any 3 and 3 signals present? If yes, calculate new stop and move stop on activity report
-Were any stops hit? Make sure to check the low of the day. Enter closed out positions on spreadsheet and activity report.

2. Check to see if any open buy orders were filled

-If filled enter on spreadsheet and activity report
-If unfilled move to proper spot on activity report. Keep limit order expiration date the same.

3. Check remainder of group list for new entry signals

*No entry signal, no action

*If there IS an entry signal:
-Check to see if requirements in “What to Buy” are met.
-Make sure market posture/forecast allows for an entry
-Make sure stock is not more than 10% above support
(stock price / support level) – 1 = % above support
-Find the proper stop loss
-Figure the per share risk in trade (purchase price – stop loss = risk per share)
-Figure how much money to risk to risk…. 2% of portfolio (Portfolio x .02)
-Figure # of shares to buy… money at risk / risk per share = # of shares to buy
-Make sure position size is not more than 25% of portfolio (Portfolio x .25) and there is enough cash/margin in the account to make the trade.
-Enter order on activity report

4. Post Activity Report to Group…. remember to change date on Activity Report

Estimated time to complete the process: 5 minutes on the easy days, up to 30 minutes when many stocks are triggering or you are just beginning/learning the process