Trading Rules1) If you want to be approximately 75% right it's pretty simple: Bet that in any given day the equity/futures contract/etc. will end the day the same direction it did the day before. It the equity went up yesterday approximately 75% of the time it will end up the following day. Try this yourself by looking at a chart of anything and calculate the percentage correct you will be if you made this bet every day. The reason for this is that equities usually have momuntum in one direction so they are more likely to continue in that direction before they reverse course.
2) Bet on the trend by looking at the 20 day exponential moving average. Favoring shorting or go long with the trend ie your friend.
3) For buy and sell signals look at stocastic moving averages include a 5 and 20 period and look for when the short term MA crosses the longer term MA to either buy or short. Then when the short term average slows down and approachs the long term either cover or sell. If this happens the momentum is changing so by waiting for the short term MA to meet the long term MA you can maximize spreads/profits.
4) Consider the RSI indicator and look for overbought and oversold points. When extreme in either one combine this info with the info in points 1-3 to support or caution against what they advise.
If you did this today with BTE you would be up even though the fundamentals on oil are bearish and betting BTE would go up would seem fundamentally contrarian. But the short term trend is up and the stocastic moving averages are up. At some point in the next 5 days or so the short term trend will likely reverse which means you can go short which follows the longer term downward trend therefore it is usually the higher probability trade.