Optimal Finance Daily - Financial Independence and Money Advice 3452: [Part 2] My Top 13 Rules for Profitable Trading in Any Market by Bob Byrne with James Altucher
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Feb 9, 2026 A concise playbook for trading through bear markets and knowing when to switch back to bullish tactics. Clear rules on using moving averages like the 200-day and 5-day EMA to time entries and exits. Emphasis on strict stop-losses, quick profit-taking with short EMAs, and removing emotion from decisions.
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Respect The 200-Day Trend
- Follow the prevailing market trend even in bear markets and treat breaks under the 200-day moving average as a warning.
- Hunker down and prepare a different playbook when stocks fall beneath their 200-day SMA.
Use The 5-Day EMA As A Gate
- Avoid buying stocks that close beneath their 5-day exponential moving average during a bear market.
- Only consider short-term buys after a stock closes above its 5-day EMA for a relief rally.
Sell Into Short-Term Strength
- Take quick profits on bear-market bounces and set upside targets at the 10- and 20-day EMAs.
- Don’t assume clearing the 20-day EMA is a long-term reversal; sell into strength if price fails to hold.