Aug 2023 BRO ACE Stock Trading Strategy

It's 3 August 2023... the Rookie Trader discovered a flaw in the BRO ACE buy strategy. When "A" triggers the buy signal, the Target may not be coming but may have just passed. Mistake done in AMD purchase.  So the new rule is: never buy if Target has been reached in the last 3 months.  

========

ROOKIE STOCK MARKET STRATEGY DAILY CHECKLIST
  • Identify stock holdings to SELL. 
  • Use BRO (Moomoo) and ACE (Yahoo Finance). All 3 must meet the criteria...
    • BOL (20, C,2). Above Upper Band (sell). 
    • RSI (7). Cross above 70 (sell).
    • OBV. Reach a 3-month high (sell). 
    • A. Average Analyst Price Target is equal to or less than price (otherwise let the profits run). 
  • Remember...
    • Never expect the price to return to its previous high.
    • Sell on signal even if it's a loss (capital cashflow is better than stuck or falling losses)
  • Identify stocks to BUY
  • Buy only S&P500 stocks... for stability and dividends.
  • Use the Moomoo stock screener to screen SP500 stocks with a daily Bollinger indicator falling below the lower band... tap into the search bar to find the Screener. 
  • Use Moomoo for BRO indicators... and Yahoo Finance for EC stats. All 5 must meet the criteria at closing...
    • BOL (20, C,2). Below Lower Band (buy). 
    • RSI (7). Cross below 30 (buy). 
    • OBV. Reach a 3-month low (buy). 
    • A. Average Analyst Price Target is more than 10% above price... AND DON'T buy if Target has been reached in the last 3 months!  
    • C. Cash Flow. Positive and in the millions. 
    • E. Earnings. Positive for the past 3 years. 
    • + Never buy when there is a gap down in the last 3 months. 
    • + Never buy if Target has been reached in the last 3 months.  

~ The Rookie Stock Trader


PS:

RECORD 3 things...

- Record new stocks on Google sheet for profit and loss tracking.

- Record new stocks in Yahoo Finance for monitoring.

- Record events in the calendar for future reference. 

PURGE

- Consolidate and Sell old stocks. Keep only 20 manageable stocks. Do not buy and hold. 

OBSERVE

Late April to early May - Buy on dip
May - Sell and go away
August - Strong month
September - A bad month for stocks.
November - Reinvest

PREVIOUSLY

- No need for this anymore... Set Moomoo Bol or RSI buy alerts.
- Forget... SuperTrend... Coz it's 3 days late.
- Forget... Use Finviz to filter the SP500 stocks with RSI below 40... If too many, find PEG less than 1... https://finviz.com/screener.ashx?v=111&f=idx_sp500,ta_rsi_os40&ft=4 ... coz taken over by Moomoo screener.  

Aug 2023 BRO ACE Stock Trading Strategy

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