April 19, 2008

The four phases of entry

1. Market selection
- liquidity
- newness of the market
- market makers and trading rules
- volatility
- capitalization
- markets and trading criteria ( how well does the market follow your trading criteria)
- market independence

2. Market direction

3. Setup condition
- a window of opportunity
- fundamental conditions
- seasonal conditions
- any other significant criteria.

4. Market timing