Forget about trading rules and think more about trading guidelines. So many trading rules get thrown around Twitter, it’s nauseating. Some rules are from the 90’s, some from the 80’s, 20’s, etc. I think in trading you should think more in guidelines than set in stone rules. The outcomes of trades will have you rethink what you do multiple times throughout the year.

The rules are endless; 200-day moving average rule, average down rule, don’t let a winner turn into a loser rule, don’t buy stocks in downtrends, etc.

Your guidelines about trading should be based on the commonalities that drive a stock within your trading timeframe. In other words, if your average holding period is 30 days then find out the commonalities of the best-performing stocks in the last 30 days for the next six months. You will probably realize that it is all about momentum within that time frame. If your holding period is quarters to years, then you will probably come to the realization that earnings, story, growth, etc. matter more.

Today when I did a quick scan of the best-performing stocks in the last 34-days, 80% of them share one market structure commonality. If you do this for the next six months, you’ll notice that this market structure phenomenon happens consistently.

As of today, 51 stocks are up 25% or more in the last month, 78% of them share the same commonality as the above study. It’s a market structure thing.


Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at or 646-480-7463. 

We live in a world in which we are bombarded with information, tweets, blogs, etc., content is the new salesman, content is the new marketing, content is the new networking. With information being so readily available, bloggers try to differentiate themselves with their writing skills, volume, and consistency, putting out blog posts to meet quotas. We are seeking to stand out from the crowd by showing performance, by taking all the information and seeking alpha, that’s the sole purpose of the blog. It won’t always be pretty; it’s never easy, and performance is spotty, but we seek superior risk-adjusted returns, not notoriety for our writing skills.  If this is something you can relate to, then this blog is for you.
This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this blog constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog. The stocks presented are not to be considered a recommendation to buy any stock. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.