Primer: Strong Term Buy and Manage

There comes a time after a decline when the sub-industries and the industry show strengthening. We won't know at that point if the first week of strengthening will continue, just like we never know if the current weakening streak will continue. But we can know that…

The action plan would then be to
1) pick a solid strengthening candidate and
2) #strongtermbuyandmanage.

This means
3) buying the candidate stock in a position size that reflects sound risk management principles and then
4) holding the stock for as long as it is considered "strengthening."

Above describes the "Strong Term Buy" portion.

Next comes the "Manage" (the position):
5) trail the sell stop outside the bounds of random noise and when the stock changes character by breaking the bounds of random noise and thus becomes "weakening" (the stock is no longer considered "strengthening" per 4) above),
6) exit the position.

Then re-commit the then-available capital to a new strengthening candidate, when conditions warrant this action.