Predicting the future is virtually impossible, but if you take a no-nonsense approach to the stock market, profits may soon follow. 

What do I mean by a "no-nonsense approach"?

  1. Every trade you place should represent no more than 1% of your total capital or assets under management.   Keep your losers/losses under control and the winners/profits will take care of the rest.
  2. Every trade must have a specific catalyst that you attempt to game.  After the catalyst has occurred, you dump the position. No matter what.
  3. Do not buy something just because you think it is cheap.  There are tons of cheap stocks currently in the market, but that doesn't mean they won't fall even more.  A cheap stock can get cheaper and cheaper and cheaper as it painfully eats away at your capital.  The ideal long trade is a cheap stock with a catalyst that may propel it higher.
  4. Keep very tight stop orders on all positions.  There are many different opinions of what the ideal stop order is. I use 5% to 7%.
  5. Keep a close eye on the CBOE Volatility Index, commonly known as the VIX.  There is no better gauge of raw fear in the market than this index.

With this in mind, here is this week's Rocket Stocks portfolio of stocks that could surge higher in the coming days.

To read more, visit Stockpickr.com.

At the time of publication, Altucher and/or his fund had no positions in stocks mentioned, although positions may change at any time.

James Altucher is president of Stockpickr LLC, a wholly owned subsidiary of TheStreet.com and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs a fund of hedge funds. He is also a weekly columnist for the Financial Times and the author of Trade Like a Hedge Fund, Trade Like Warren Buffett and SuperCa$h. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback; click here to send him an email.

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