I have closed out my positions in Sembcorp Ind and ICBC, but they have continued running up. I am once again, too early to take profit on my outperfoming stocks. Hence, it is necessary to formulate a set of rules to prevent this from happening again.
Buy Rules
#1 Buy only blue chip or very strong stocks
#2 Buy only when stock is below 200-day EMA (yes, contrary to popular trading rules!)
#3 Buy slowly, in stages
Sell Rules
#1 Sell underperformers early
#2 Sell outperformers only after selling underperformers
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