top of page

The Abuelo System Preamble

1. Decide your Trading Approach - Swing Trader or Long Term Investor?

    The Abuelo System is focused on the short term or Swing Trading.

    https://www.abuelosystem.net/buying-short-term

2. Decide your Position Size and Risk Appetite

    How much you are prepared to invest in each stock. In total, how much are you prepared

    to put at risk of substantial loss?

    https://www.abuelosystem.net/market-crashes

3. Avoid trading on Fridays or Mondays

    This is a phenomenon known as the "Weekend Effect" or "Monday Effect".

    https://www.investopedia.com/terms/w/weekendeffect.asp 

4. What is your Risk / Reward Ratio?

     A 1:3 ratio implies break even with 25% of your trades  (before fees).

    https://www.investopedia.com/terms/r/riskrewardratio.asp

5. To start, check high growth market sectors

     Consider trading high growth stocks by evaluating their growth metrics.

High Growth Market Sectors

https://www.marketindex.com.au/asx-sectors

The ASX is grouped into 16 Sectors' Indices. The ones with the higher growth rates clearly present the best investment prospects and the opposite is true for those with negative growth rates.

Note here also, the overall market is falling (-1.9%)

sectors growth 22mar.jpg
bottom of page