In an effort to provide some trading disclosure ground rules, we have established this page to elaborate on our "Rules of Thumb for Day Trading" at VRTrader.com. Remember, this is a hypothetical portfolio and real-time trading can be and is vastly different in terms of execution.

The following are several assumptions we are making so that we may facilitate market timing:

1) Trading Ranges (Buy or Sell, Short or Cover)- In order to provide guidance as to the approximate execution price we are looking for, we have decided to use Trading Ranges. When the staff of VRTrader.com discusses a recommendation, oftentimes we are looking to buy, sell, short or cover at current prices. In the case of a Buy order, the range will encompass the current price. For example XYZ last traded at $17.25. If we feel strongly about buying the stock, we could list a buy range of, for example, $16.75 - $17.75 so as to insure that we don't miss out on a move in the stock price. Conversely, if the supplied Trading Range is beneath (in the case of a buy or cover short order) the current share price, our interest in the particular equity lies at a lower price level.

2) When a stock rallies or declines 1 point or more from the price at which it was bought/sold, we will raise/lower stop to cost. This will limit the potential loss on a trade.

For example: A recommendation is issued to buy XYZ at $49.00- 50.00. Subsequently, the order is filled at $50.00 and we set the initial stop at $47.00. If, over the course of the day, the stock rallies to $51.00, we would adjust the stop price to cost at $50.00.

And further,

3) WWhen a stock rallies or declines two points or more from the price at which it is bought/sold, we will raise/lower stop another 1 point. Continuing the above example, Should the stock continue to appreciate during our holding period, we would raise the stop accordingly. In other words, XYZ moves to $52.00, the stop is raised to $51.00.

4) When a target is hit before the recommendation is fulfilled, the trade will be cancelled. Additionally, when the stock gaps open below or above buy/sell range, the trade will be cancelled. And, should news suddenly appear before the opening that could adversely affect price (i.e., a downgrade or upgrade), we will cancel the trade.

5) Stocks have to penetrate Stops before positions are closed. Touching Stops is not sufficent!