1 - Buy only stocks making new 52 week highs (buy the day the stock makes the new

high in order to avoid price gaps)

2 - Focus on Small Cap (300 million to 2 Billion) Mid Cap stocks (2billion to 10 billion) since they have more opportunity
for growth. Movement in these types of stocks vary between 25% to 150%

3 - Never buy stocks that have risen based on news and more important, do not buy stocks that gap 10% or more

4 - Look for trends using a 25 DMA and a 350 DMA. If the 25DMA is above the 350 DMA buy long; if the 25DMA is below
the 350 DMA sell short (use a 10% trailing stop on both directions)

5 - Buy stocks that have a relative strength of 70% or lower

6 - Buy stocks that have institutional acceptance (keep an eye on stocks that are “over owned” usually 65% or more)
7 - Look for stocks that show and increase in daily trading volume. These stocks are more likely to move in price rapidly
8 - Set up a 15% trailing stops on all new orders

9 - Divide your capital equally among positions and do not risk more than 2% of your capital in any position

10 - Do not own more than one stock per sector, this will allow you to maximize positions across different markets and
leverage your risk