a good trading strategy is this …..

Tarzan said:
Look for stocks that hold their 50 dma for example. When stocks fall intraday and breach their 50 dma, it usually bounces back to it or above it. Unless its a very strong and precipitous drop due to some bad news, this is a viable intra day trading strategy.
As always, nothing is fool proof. This has worked for me in the past.
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This was what my forex trading coach taught me.

He was a great snake oil seller.
He was very good at selling fridges to the Eskimo.
 
Today I traded PLUG as I mentioned in another post. It was up nicely in a bad market. While it was trading at 25.25, I said it should see 26 today. It went right through 26 and guess where it completely stopped at ? The 50 dma…..
 
Stopped at it huh? 50 daily MA superimposed on a 1 minute chart. If only:-
!PLUG.png
 
I sold PLUG just under 26. It went straight through it and hit 26.50 and closed at the 50 dma.
Moving averages matter !
 
Exactly, it went straight through it ... because it doesn't matter.

And it closed above it because the stock was strong and not because a meaningless squiggly line was there.
 
SunTrader said:
Exactly, it went straight through it ... because it doesn't matter.

And it closed above it because the stock was strong and not because a meaningless squiggly line was there.
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PLUG stopped right at the 50 dma.. Moving averages matter when trading !!!
 
I feel like finding a good trading strategy is a never ending process and this is the one thing for which you can’t take help from some other traders. You need to develop your own strategy on the basis of your own personality type. Here I am continuously re-evaluating my strategy to fit in all the parameters.
 
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