charts/tape reading

The market doesn't care what I or anyone else says.
The market is the final authority of profits or losses.
That's why it's smart to listen closely to what the market has to say.

One way to look at is ignore noise (news) and focus on charts as the resistance/support/hammer/volume is how the market is saying what it wants to say.

Trading Rules

Timing; Timing; Timing
1) Wait very patiently, sitting in cash, till many odds are in your favor:
- New products.
- resignation of CFO/accountant.
- resistance/support should be far off.
- 52 wk highs and lows.
- legal issues.
- catalyst [OPEC; Fed; CPI/PPI/Jobs; Earnings; Elections]
- large window w/ heavy volume; extreme -ve/+ve MACD; extreme fear/greed on street/way over sold or bought conditions; doji stars and hammers.
2) sit tight till conditions change and a reversal observed[from MACD; window/doji star; overbought/oversold; catalyst]

Money Management
3) Cut losses [10% is the max loss you'd allow]
4) The amount of capital to invest is typically less than 1/10th of capital per venture.

Options
5) When anticipating a quick move, do the closer strike[weeks/months] options than the far-away[LEAP] ones.
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