Step 1: Identify stocks that have a high probability of moving significantly higher over the next 3 - 6 months (using CANSLIM for instance) and add them to watchlist;
Step 2: Wait for short term and/or intermediate term signal based on market indexes to get long or short;
Step 3: Isolate the stocks in my watchlist with the best chart patterns using weekly charts for position trades and daily charts for swing trades;
Step 4: Identify entry and exit points and use spreadsheet to calculate position size based on 2% risk model for swing trades (with position trades I usually use a 5% - 10% stop loss on 1 - 2 positions);
Step 5: Look for the optimal combination of positions that will utilise all my buying power yet keep portfolio risk below 6% for swing trades and below 10% for position trades;
Step 6: Place buy stop orders and wait for trigger. If triggered place stop loss order and then sit with trade until target price is achieved, stop loss triggered or market indexes or the stock's sector weakens significantly;
Step 7; Repeat!
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