PowerRatings Newsletter

This Past Week's PowerRatings (for Traders) Strategy Articles

iRobot Gained 32% This Week; Find Out How to Spot Stocks Ready to Move Despite major upheaval in the markets lately, PowerRatings (for Traders) can help you find the right stocks to trade... Low-Priced Stocks that Could Rally Next Week With the markets so volatile from day to day look to a historically backtested strategy to get past the emotion. Wall Street's Wild Ride - Are You in the Right Stocks? The Dow continues to provide the volatility that short term traders thrive on with a near 400 point drop in Thursday's session. In times like these having a well thought out trading plan becomes ever more crucial, since big profits can be made as well as lost.

Have a great week trading! And if you need assistance at any time please email me at powerratings@tradingmarkets.com, or call 1-888-484-8220 ext 1 (outside the US please call 213-955-5858 ext 1).

John Lee
Associate Editor

Two Simple Rules to Trade PowerRatings (for Traders)

PowerRatings (for Traders) are the single most popular tool we have on TradingMarkets. In this article, we will show you how you can potentially improve your trading edge even further with PowerRatings. All it requires is the addition of two rules.

When we first published PowerRatings beginning in 2005, the simulated results were based upon a holding period of five days. If a stock had a PowerRating of 9, its simulated returns were based upon buying a stock on the opening and exiting the stock five trading days later. But, as we will teach you here, one can dramatically improve the simulated edges in PowerRatings further by adding two simple trading rules to them.

Here are the rules:

1. Only buy a high PowerRating stock (7 or higher) on a limit order below yesterday’s close.

2. Instead of using a static exit and waiting for five days, use a dynamic price exit by exiting the trade when the stock closes above its 5-day simple moving average (SMA).

By adding these two simple rules, the simulated returns rise substantially and expand the edges even more.

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