1. Determine the overall market condition.

If you are trading equity-based securities (e.g., stocks), determine the trend in
interest rates, the trend of the New York Stock Exchange, and of investor
sentiment (e.g., read the newspaper). The object is to determine the overall trend
of the market.

2. Pick the securities.

I suggest that you pick the securities using either a company or industry you are
familiar with, or the recommendation of a trusted analyst (either fundamental or
technical).

3. Determine the overall trend of the security.

Plot a 200-day (or 39-week) moving average of the security's closing price. The
best buying opportunities occur when the security has just risen above this
long#term moving average.

4. Pick your entry points.

Buy and sell using your favorite indicator. However, only take positions that
agree with overall market conditions