NoFrills Trading Plan 2006 Objectives & Position Sizing * Grow $ 25,000 initial by $ 9,750 (39%) by year end * Improve my discipline discipline and also validate/refine my trade setups * I will risk a maximum of $ 500 per trade (2% of my trading capital) * If the total losses for the month is $ 2,500 or above, I will stop trading for that month * I will have a maximum of 5 positions open at once Instruments & Selection * US and Canadian (TSX) stocks * Long candidates will be selected from 1-IBD 100 list,2-MSN Stock Scouter Top 50,3-Visual Scanning * Preference will be given to stocks with stockscouter rating above 8 (long) * Short candidates will be selected from 1-IBD 100 list,2-MSN Stock Scouter (<=6),3-Visual Scanning * Preference will be given to stocks with stockscouter rating below 6 (short) * Stock last price should be 5 dollars or more * Average daily volume for the last 2 weeks should be 200k+ * No upcoming earnings release Time-Frames * Time frames for trading will be Daily, Weekly and Hourly Execution * Interactive Brokers and E*Trade Canada * Trade entry: Stop Limit orders * Trade exit: Stop limit orders & trailing stop orders (when available) Setups Support and Resistance Method (longer duration trades) * entry: at support for longs or at resistance for shorts * stop loss: below major pivot point or support (long) or above major pivot point or resistance (short), move to break even ASAP * profit taking: close 1/2 of the position at 2R profits and move the remainder to break even. 1-2-3 TTE or RH TTE (short duration trades) * entry: after trend has been stablished by 1-2-3 low/high. Enter 0.10 above (long) or below (short) of the last bar, up to 3 bars. * stop loss: 0.10 below low of the entry bar (long) or high of the entry bar (short). Move stop to break even ASAP. Move stop to 0.10 below (long) or above (short) of the last bar. * profit taking: close 1/2 of the position at 2R profits and move the remainder to break even.