Trading Rules to Live

and Win by
Commodity Resource Corp.
P.O. Box 8700
Lake Tahoe, Nevada 89452-8700

Ganns 4 Essential Qualities

1.
2.
3.
4.

Patience
Knowledge
Guts
Health & Rest

OVERTRADING
Your Greatest Enemy

When In Doubt
Get Out!

Never Average a
Loss!

Money
Management Is
The KEY

The Trend Is
Your Friend

Never Let a
Good Profit Turn
Into a Loss!

IF the Market Is Not

Confirming Your
Opinion, Lose Your
Opinion & Listen to
the Market

Pyramid
Properly

Be Aggressive

The Markets
Reaction to the
News Is Critical

Barrons Online

Barrons Online

Barrons Online

Barrons Online

How to Trade News

If bad news is announced, and the market
starts to sell off in large volume _________
If the market doesnt react much to good news
______________________________
Moves of importance invariably tend to begin
before ________________________

 A big rally (decline) on NO NEWS is

almost always
______________________________
It is generally not good practice to buy
after a lot of very bullish news or
_______________________________
When unexpected news occurs
_______________________________

The Voice From the Tomb

WHEAT

Sell March wheat on January 10

Buy May wheat on February 22
Sell July wheat on may 10
Buy December wheat on July 1
Sell December wheat on September 10
Buy March wheat on November 28

Simple Moving Averages

SMA = P1+P2+P3++PN
N
P is the price of the commodity being averaged.
N is the number of days in the moving average.
5SMAday1=2105+2110+2115+2120+2125=2115
5
5SMAday2=2110+2115+2120+2125+2155=2125
5

The Simple Moving

Average
SMA = P1+P2+P3++PN
N
P is the price of the commodity being averaged.
N is the number of days in the moving average.

Program Rules:
To generate a buy signal:
1. The market must first close above both the 23 and 30 moving averages
(this is the set-up bar)
2. The market must then exceed the high price of the set-up bar.
This is a new buy signal signaling the market is in a confirmed up-trend.
To generate a sell signal:
1. The market must first close below both the 23 and 30 moving averages
(set-up bar).
2. The market must then exceed the low price of the set-up bar.
This is a new sell signal signaling the market is in a confined downtrend.

10 Major Rules for

Successfully Trading the
H&S
Rule 1: NEVER anticipate.
Rule 2: The bigger the H&S, the bigger
the move.
Rule 3: The count is a minimum.
Rule 4: Watch for the return move.
Rule 5: Watch the slope.

Rule 6: Be volume cognizant.

Rule 7: Watch for the H to form an island.
Rule 8: It should act the right way right away.
Rule 9: If false, look to reverse.
Rule 10: Watch closely after a false is confirmed.

5 Rules for Successful Gap

Trading
Rule 1: Most gaps are common.
Rule 2: If a long base, place a buy/sell stop
above/below.
Rule 3: Use measuring gaps to pyramid.
Rule 4: Never anticipate exhaustion gaps, wait
for them to be filled!
Rule 5: When you see a significant gap, dont
hesitate!

6 Rules for Trading

Breakouts

Rule 1: The longer the time, the bigger the move.

Rule 2: The market can retrace back, but it shouldnt
trade back in.
Rule 3: A quick failure is a symptom of a false signal.
Rule 4: Watch the volume.
Rule 5: Never place your stops just under support/just
above resistance.
Rule 6: The count.

6 Rules for analyzing

Open Interest

Rule 1: If prices are in an

& OI is

= Bullish

Rule 2: If prices are in a

& OI is

= Bearish

Rule 3: If prices are in an

&OI is

= Bearish

Rule 4: If prices are in an

& OI is

= Bullish

Rule 5: If prices are in a congestion range & OI is

= Bearish

Rule 6: If prices are in a congestion range & OI is

= Bullish

George Kleinman

geo@commodity.com

Commodity Resource Corp.

P.O. Box 8700
Lake Tahoe, Nevada 89452-8700
(775) 833-2700 or (800) 233-4445