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Developing a profitable strategy
- Thread starter mgabriel01
- Start date
1) Trading goal ---- dont lose money.
Reason: I am coming to the conclusion one cannot succeed at this unless one has the mindset not to lose on trades.
i came across this and i think this is just the opposite. you need to understand that losing is part of the game. Those that are unwilling to accept loss on their terms ussually accpet large losses
Reason: I am coming to the conclusion one cannot succeed at this unless one has the mindset not to lose on trades.
i came across this and i think this is just the opposite. you need to understand that losing is part of the game. Those that are unwilling to accept loss on their terms ussually accpet large losses
Try trading discretionary.
Test out your ideas you gain from it.
It's the fastest and first step to take as a trader...
Test out your ideas you gain from it.
It's the fastest and first step to take as a trader...
Observations:
Watching the trend of the overall market seemed to be important.
I used the TOS bollinger band study on GS, BSC, DIA, SPY and QQQQ to find support / resistance levels throughout the day --- they seemed reliable when looking back over time - but not reliable in the here and now. Need to look into this further
Watching financials for new lows then trying to catch a bounce - seems fruitful - but have to leave the trades open for several days to catch it. Long term this is too risky - but have not been burned so far
Watching the trend of the overall market seemed to be important.
I used the TOS bollinger band study on GS, BSC, DIA, SPY and QQQQ to find support / resistance levels throughout the day --- they seemed reliable when looking back over time - but not reliable in the here and now. Need to look into this further
Watching financials for new lows then trying to catch a bounce - seems fruitful - but have to leave the trades open for several days to catch it. Long term this is too risky - but have not been burned so far
Attachments
I followed this advice as closely as possible with the means at my disposal - and it helped (I do not know enough to short stocks yet - so I am only making trades to catch a bounce up)
--- these are good points:
--Determine a trend in BOTH the stock AND the market, and trade only in that direction. This isn't rocket science. Use an EMA of a decent length, and eyeball the charts of the stock and the S&P.
--Buy into a stock's weakness in an uptrend, and sell strength in a downtrend. In an uptrend, you will be looking for a sharp selloff as a good entry point as that is most likely to attract buyers. Imagine yourself owning the stock. Would you be throwing up at this point and selling in a panic? Good. It's time to buy. And in a downtrend, look for sharp rally that you can short. Over the past 90 days, there have been clear periods of strong market and stock uptrends, and downtrends. September, a great month to be buying weakness. October-November, an excellent time to be shorting any sign of strength. A super trading environment. The best in years. If the overall market is not in a clear uptrend or downtrend, then tread carefully and trade very small.
--- these are good points:
--Determine a trend in BOTH the stock AND the market, and trade only in that direction. This isn't rocket science. Use an EMA of a decent length, and eyeball the charts of the stock and the S&P.
--Buy into a stock's weakness in an uptrend, and sell strength in a downtrend. In an uptrend, you will be looking for a sharp selloff as a good entry point as that is most likely to attract buyers. Imagine yourself owning the stock. Would you be throwing up at this point and selling in a panic? Good. It's time to buy. And in a downtrend, look for sharp rally that you can short. Over the past 90 days, there have been clear periods of strong market and stock uptrends, and downtrends. September, a great month to be buying weakness. October-November, an excellent time to be shorting any sign of strength. A super trading environment. The best in years. If the overall market is not in a clear uptrend or downtrend, then tread carefully and trade very small.