Share Buying Rules

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Entry Rules — When to Buy

01

Don't chase breakouts If a stock has already run hard, wait for the first pullback to confirm support before entering.

02

Confirm the trend before sizing up Price above the 50-day MA is a minimum condition for a full-size position. Below it, half size or wait.

03

Check RSI before entering Avoid buying when RSI is above 70 on the daily. Overbought entries reduce your margin for error.

04

Volume confirms conviction Only enter on a breakout if volume is meaningfully above average. Low-volume breakouts are traps.

05

Know your catalyst Don't buy into a stock without understanding why it should move. Macro theme, earnings, re-rating, or technical setup — pick one.

06

Wait for the close For volatile or speculative names, don't buy intraday spikes. Let the candle close and confirm direction.

07

Never buy on weekends Markets are closed and weekend news is unpriced. Use weekends to research and plan, not execute. If you feel the urge to buy on a Sunday, write it down and set a price alert instead. Any orders queued for Monday open should use a limit order to protect against gappy opens.

08

Always run a second-opinion check with Claude before entering Especially if the idea came from YouTube, social media, or an external tip. Ask: What's the bull and bear case? Is this a good entry point technically? What macro or sector risks could work against this?

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Dip-Buying Criteria

01

Distinguish a dip from a breakdown A dip is a pullback within an uptrend. A breakdown is a structural move lower. Only buy dips, not falling knives.

02

50-day MA is the first dip-buy zone For quality names with strong fundamentals, a test of the 50-day MA in an uptrend is often the ideal entry.

03

Require a reason for the dip Sector rotation and general market weakness = potential buy. Earnings miss, guidance withdrawal, or fundamental deterioration = stay out.

04

Use ATR to size your entry zone If a stock has a high ATR, don't buy the first day of a pullback. Give it 1–2 ATR of room to find a base.

05

Set a price alert, not an order For high-volatility names, place a price alert at your target level and manually assess before buying. Avoids getting filled on a gap-down flush.

06

Don't dip-buy a stock you don't already understand Research happens before the dip, not during it.

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Exit & Stop Rules

01

Set your stop before you enter Know your max loss per trade before you hit buy. No entry without a defined stop level.

02

Prefer trailing stop-limits over hard stops Use mental stops with price alerts for volatile names to avoid stop-outs from intraday noise.

03

Lock in partial gains on strong runs If a position is up 20–40%, consider trimming 30–50% to protect capital while staying in for more upside.

04

Don't let a winner turn into a loser Once a stock is up meaningfully, move your stop to at least breakeven.

05

Fundamental deterioration = immediate exit review If the thesis changes (guidance withdrawal, seismic event, management change), don't wait for the stop. Reassess same day.

06

Time stop If a stock isn't moving after 4–6 weeks, review whether capital is better deployed elsewhere.

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The YouTube / Tip Rule

01

Wait 24 hours before acting on any tip Content creators often already hold the position — rushing in makes you their exit liquidity.

02

Check when the video was published If the stock is already up 20%+ from where it was discussed, the opportunity has likely passed.

03

Let Claude stress-test the thesis first Bring the idea here before buying. A 5-minute check-in could save you from a bad entry or a stock that's already priced in the news.

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Macro & Geopolitical Awareness

01

Always know the macro backdrop before entering any trade Interest rate expectations, inflation data, and central bank tone (RBA, Fed) directly affect valuations — especially growth and resource stocks.

02

Geopolitical events move commodities fast Conflicts, trade disputes, and sanctions can spike or crash oil, copper, zinc, uranium, and rare earths overnight. Scan before entering resource stocks.

03

US politics affects your ASX holdings Tariff policy, defence spending, energy policy, and USD strength all flow through to Australian markets.

04

China is a key variable for most ASX resources Iron ore, copper, lithium, and rare earths are all heavily China-demand driven. Any major Chinese economic data, stimulus, or trade policy shift should be on your radar.

05

Ask Claude for a macro pulse check before any significant buy Especially after a weekend or around major data release weeks. A quick "anything macro I should know before buying X?" takes two minutes and could save a bad entry.

06

Risk-off environments are not the time to be a hero If markets are in a clearly risk-off mode (rising VIX, falling futures, dollar strengthening), reduce urgency on any new entries. Wait for conditions to stabilise.

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Weekly Rhythm & Check-ins

SUN

Sunday evening macro check-in Before the ASX opens Monday, review weekend news with Claude. Scan: US Friday close, central bank commentary, commodity price shifts, geopolitical developments.

MON

Don't trade the Monday open blind If there was significant weekend news, wait for the first 30–60 minutes of ASX trade to see how the market digests it before entering or adding.

MON

Check US futures before ASX open If S&P futures are down 1%+, that's a risk-off signal. Reconsider any planned buys for that session unless they're dip-buy setups.

WED

Mid-week macro pulse Wednesday is a good mid-week gut check, especially in weeks with US data releases. Has the week's narrative shifted from what you expected Sunday?

FRI

End-of-week review Note any positions that had a bad week without a clear catalyst. Decide before the weekend whether you're comfortable holding over two days of no liquidity.

Sunday Check-in — What to Ask Claude

Scheduled macro events this week — Fed speakers, CPI, jobs data, RBA decisions
Weekend news that affects my sectors — commodities, geopolitics, policy shifts
ASX-specific catalysts — earnings, index rebalances, resource sector news

Standing Sunday Prompt

"Sunday check-in — what's the macro setup heading into this week, and anything I should know before the ASX opens Monday?"

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Early Stage Identification — Finding Stage 1 & 2

Stage 1 — Target Zone

Accumulation

Flat, low-volume base. Institutions quietly building positions. Price going sideways for weeks or months. No retail awareness yet.

Stage 2 — Target Zone

Early Markup

Price breaking above the base on rising volume. Trend beginning to establish. Still below analyst radar and social media attention.

Stage 3 — Avoid Entry

Distribution

Stock on YouTube, trending on X. Price extended, volatility high. Institutions distributing to retail. This is where most tips come from.

Stage 4 — Avoid Entry

Decline

Downtrend established. Lower highs, lower lows. Retail still holding hoping for recovery. Avoid averaging down here.

01

Insider buying is the strongest early signal When a CEO, CFO, or director buys meaningful amounts of their own stock — not options, actual shares — that's the most reliable Stage 1 signal available. Check OpenInsider every Friday. Look for cluster buying (multiple insiders buying at the same time) as an even stronger confirmation.

02

Institutional accumulation via 13F filings When a respected fund takes a new position, that's Stage 1 by definition — they got in before you heard about it. Check WhaleWisdom every Saturday for new positions from funds you track. A stock appearing in multiple new 13F filings in the same quarter is a strong accumulation signal.

03

Watch for unusual volume before any news A stock trading 3–5x its average daily volume with no news is often informed accumulation. This is one of the cleanest Stage 1 signals. Set up a TradingView screener for ASX and US stocks showing unusual volume spikes on otherwise quiet days.

04

Follow sector rotation before it becomes obvious Money rotates into sectors in a predictable sequence. When a macro theme starts attracting institutional money (e.g. uranium in 2020, AI in 2022), the first movers within that sector are Stage 1 plays. Ask Claude: "Which sectors are seeing early institutional rotation right now?"

05

Look for Stage 1 base patterns on TradingView A Stage 1 base looks like: flat price action for 6+ weeks, volume drying up (contracting), price hugging the 200-day MA from above, and RSI resetting toward 40–50. This is the coiling spring before the move. Screen for these weekly.

06

Track themes before the stocks — not the other way around Identify the macro theme first (e.g. data centre infrastructure, rare earths, hypersonic defence), then find the undiscovered picks-and-shovels plays within it. Stocks that fit a coming theme but haven't been discovered yet are the best Stage 1 opportunities.

07

Small cap with large cap thesis — the sweet spot The best Stage 1 opportunities are often small or micro-cap companies with exposure to a mega-cap theme (AI, defence, critical minerals). They fly under the radar because fund managers can't buy them at scale — but retail can. These are your asymmetric opportunities.

08

Use Claude as a weekly early-stage screener Each week, ask: "What small or mid-cap stocks in my themes are showing early institutional interest or insider buying this week?" This systematic prompt builds an early pipeline of ideas before they hit mainstream awareness.

Your Weekly Early-Stage Toolkit

Friday — OpenInsider: Scan for insider buys in your theme sectors. Look for cluster buying and large dollar amounts.
Saturday — WhaleWisdom: New 13F positions from funds you track. First appearances = Stage 1 signal.
Weekend — TradingView screener: Unusual volume + flat base + low RSI in your watchlist sectors.
Sunday — Claude early-stage prompt: "What's showing early institutional interest in quantum / uranium / defence / critical minerals this week?"

OpenInsider.com

Free insider transaction database. Filter by purchase type, dollar amount, and sector. Look for Form 4 filings showing open-market buys.

→ Every Friday

WhaleWisdom.com

13F institutional filing tracker. New positions from respected funds are the cleanest Stage 1 signal available to retail investors.

→ Every Saturday

TradingView Screener

Build a custom screener: volume 3x+ average, RSI 40–55, price within 5% of 200-day MA, market cap under $2B. Run weekly.

→ Weekend

Claude Early-Stage Prompt

Weekly prompt: "What small/mid-cap stocks in my themes show early institutional interest or unusual activity this week?" Builds pipeline before hype hits.

→ Every Sunday