PLEASE HELP!!!How to incorporate all the TA and other stuff into sth meaningful?

this is interesting

first of all no indicator is perfect, otherwise there would be no market. I agree with pretorean2. Simplify, simplify all these indicators like stoch, avg, etc. can become like crutches. Giving you the impression that you 'know' what you are doing.

second, you say "I mean , How do I devise my OWN strategy and setup to follow each day? "

there is no easy way around this part. This is where you come in. The method you choose will have to mesh well with your personality.

Know yourself otherwise trading will reveal the most hidden weaknesses you have.

Ferret them out and create a method that will rely on your strengths and downplay your weaknesses.

No one can take your hand and lead you to your method. This is where it is just you and the market.

If you don't know who you are, the market is an expensive place to find out.

Wish you the best
 
Dear friends,

I wish to thank you for the quick answers to my questions and THX KNNYT, for bringin me in here ;).

Perhaps some of you know, nut the style Im after is 2k acct with IB and start swing trading BUT, only small lots like 10 or 20 shares and try not to loose all of the money. Remember, I want to learn and not make money. Well, for now at least, he he...

So , I would be scanning daily charts of those 20 stocks or another portfolio (GE PFE EMC GDT T AMD MU C WMT MRK AO TXN
TYC DIS DNA HD JPM JNJ GPS SGP HDI VOD SWY NE ICN MO WFC HAL
CD IFX MAS BAC USB HON) and choose a couple of them for the next day.

Than, I would go intraday (QuoteTRacker, not much but free!) on say...15? min chart and find a good entry. Thats the part thats bugging me, is 15 min OK? Or should it be sth else? I think this type of strategy would offer fairly good education and you could make some money. Also, it wouldn't call for super-speed-click-me-and-fire-away exit/entries heh...

Anyone got an oppinion , more than welcome! Trade well guys...

Alex_Gone_Fishing
 
If you are swing trading, why don't you give paper trading a shot before you use your own money? I mean afterall as a swing trader you are not quite impacted by the fills and slippages, and your paper trading result will be actually useful.
 
For daytrading, maybe it is different. But for a swingtrader, indicators are not useless. I use them with success (stochastic particularly). Of course, they are not perfect. Do they lag? Sure. So what. All that matters is that whatever system you are devising -- indicators, no indicators -- has a positive expectancy, and then use money management and let probability do the work for you. If you use an indicator, just make sure you understand EXACTLY how it works, and what its limitations are. There are times, for instance, when stocastic is excellent and there are times when it is worthless.

Take Hitman's advice and paper trade your concept for while first. I paper traded my system for a year before I put a dime of real money into the market.

Wet
 
"Stick to looking for larger moves, and since you only have 2k, you might want to do options instead. I was able to turn like 3k into 20k in the last month on about a half dozen option trades. I don't think that anyone trading with low equity can make it in equities without first building his account using options"

Pretorian, this is an interesting point. Would you please expand why options could be better suited for a newbie to grow his account before trading stocks? Just for leverage? Why better than futures, then? Is it not a more difficult stuff to learn before being able to profit from it? Even better, would you show us an example of a past trade of this kind?
 
P2 says

"I don't think that anyone trading with low equity can make it in equities without first building his account using options"

And on the basis of what do you make such a totally ignorant comment? Perhaps you should go to the "my story" thread and read about how everyone started with low equity and now considers themselves a good and successful trader.

Low equity doesn't mean squat if you have low commissions, my friend.

Wet
 
Hey Guys, no need to "raise the heat"...


I just posted a question so everyone can reply and express his/her own oppinion. I DO however doubt that I could build up my acct w. options as I hardly understand the core concept :(... And I agree with Wet, It IS a small acct. but if I have 1c/share comm. than why would it be so impossible to trade NYSE 1-5 days and build it up? For ex. 10 share lots...or 20...


Keep cool and trade well!

Alex_The_Peacemaker
 
Sorry for raising the heat.

I just get tired of the negative based "I know it all" comments like "you CAN'T trade with indicators successfully" and "you CAN'T trade with an account smaller than ___insert your account size here__". I'd expect more from the people here.

Will you quickly increase a 2K account? No. But you can. And you will get an education doing it, so when you have a larger account you don't do anything stupid.

Just my 2c

Wet
 
Alex =)

There have been alot of comments from some outstanding traders already but i thought i would throw in my 2 cents worth =)..

first thing to consider is what time frame are you going to trade.. you have already answered that.. 1-5 days..

second.. what type of system will you use.. you could go with a system that derives signals from indicators (stochastics, RSI, MACD, etc) or you could go with a support/resistance type strategy.. or, you could combine the two.. since you say you want to keep things simple, i recommend looking at support/resistance strategies with perhaps a moving average or two..

third.. you need to size your positions to compliment the time frame that you use to enter the trade.. if you are looking at daily charts to find setups, and then plan to enter the trade based on the 15 minuite chart, your stop will usually be somewhat closer than trading only with the daily chart..

a great book that has not been mentioned on this thread is "A Beginners Guide to Daytrading Online" by Toni Turner.. it covers some swing trading setups, explains support and resistance.. and even teaches basic candle stick formations..

whatever you do.. i recommend that you follow Hitmans advice and papertrade your system until you know it very well.. if your purpose is to learn then let the lessons be free until you have some experience..

good trading

-qwik
 
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