Still The No. 1 Rule For Stock Investors: Always Cut Your Losses Short

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You only have to look at the investment results bear market options trading rules year of the people who come onto television sprouting their views to know that most of their methodologies have no statistical evidence of working in a down market.

Think back to The same carnage that happened then is now being played out a second time in this decade. Markets bear market options trading rules up, their funds go up. Markets get volatile and go down — these people are not equipped to handle it. The numbers and the results from and again this year are the proof of this. Click here to order your copy of The VXX Trend Following Strategy today and be one of the very first traders to utilize these unique strategies.

This guidebook will make you a better, more powerful trader. So how do you make money in a market like this? The exact same way you make money in a rising market. You start with 5 simple rules bear market options trading rules you do your best to abide by those rules. And we do our best to live with them too.

The rules not perfect not even close and they do not guarantee we or anyone else will make money in the future. But Bear market options trading rules oversee a private investment partnership which has been profitable since inception. Because of the following set of guidelines or rules which are the backbone of our trading.

Only buy stocks above their day moving average. This rule, more than any other, is the reason why people who use it have done well this year. Go look at the charts of Bear Sterns, Countrywide, Lehman, Wachovia, the mortgage companies, the home builders and many more and see what happened after they broke under the day moving average.

Nearly every money manager in the world could have protected their investors from this one simple rule. And you can too by simply avoiding stocks below the day. Buy stocks above their day on pullbacks. Stocks making 10 day lows have far outperformed stocks making 10 day highs. Use the 2-period RSI to find your pullbacks. And the statistics back this up. Stocks trading with a 2 period RSI under 2 substantially outperform stocks trading with a 2 period RSI above 98 over the short-term.

Buy stocks on further intra-day pullbacks. We ideally want to be buying stocks in uptrends which have pulled back. This one rule alone increases the simulated returns on test results and we especially like it to help filter out the better stocks to buy each day. Exit on a close above the 5-period moving average. Everyone likes to tell you when to get in. But we all need to know when to get out. We have many different exit strategies all quantified but to keep this simple, use a close above the 5-day moving average.

Once the stock closes above its 5 period moving average its time to get out. This exit is price dynamic, meaning its always adjusting to current price, and it does a nice job of finding the sweet spot of a stocks rally. Once a stock closes above its 5-day moving look to exit bear market options trading rules profitably and bear market options trading rules onto your next trades. Learn more about the above trading rules and how to further apply them.

Our 2 bestselling trading books with quantified stock, ETF, and market timing strategies are now in paperback edition for the price bear market options trading rules one hardcover book!

Click here to order. I hope the above guidelines are of help to you. I expect that string of consecutive trades with profit to reach 27 trades — and keep growing! At Connors Research, we are using it as an overlay to many of our best strategies to make them even better -- now you can, too. Larry Connors has over 30 years in the financial markets bear market options trading rules.

For over 15 years, Larry Connors and now Connors Research has provided the highest-quality, data-driven research on bear market options trading rules for individual investors, hedge funds, proprietary trading firms, and bank trading desks around the world. The Connors Group, Inc.

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