is my technic correct??

jjohnjc · Nov 1, 2008

hi all

I am new to trading, but not sure if the technic I use is correct.

I normallay look at the FTSE (5min), wait for the chart to hit the support line and expect it to bounce back but it does not. (some time it does and some time it continues) maybe you guys can me put onto the correct path, which indicator and settings do you recommend to predict the movement? (i understand the main trend, however the main trend does have smaller trends) I am aiming at short term trades, looking at the smaller trends, using IG index charts.

IG-index charts looks ok, they have a good list of indicator. However I don't know which one to apply? (i tried to experiment with MCD, RSI, Sophictics, and here I start to confuse myself)

is there another strategy for short term trades?

Is there a software that can provide buying and selling signal? i am not after the auto pilots, however something that can give the trader a hint and then he/she can perform an analyse onto the chart? (maybe this sounds too si-fi')

sorry to throw all these questions on my first post!

look forrward to hear your response

regards

john

UKtradergirl · Nov 1, 2008

jjohnjc said:
hi all

I am new to trading, but not sure if the technic I use is correct.

I normallay look at the FTSE (5min), wait for the chart to hit the support line and expect it to bounce back but it does not. (some time it does and some time it continues) maybe you guys can me put onto the correct path, which indicator and settings do you recommend to predict the movement? (i understand the main trend, however the main trend does have smaller trends) I am aiming at short term trades, looking at the smaller trends, using IG index charts.

IG-index charts looks ok, they have a good list of indicator. However I don't know which one to apply? (i tried to experiment with MCD, RSI, Sophictics, and here I start to confuse myself)

is there another strategy for short term trades?

Is there a software that can provide buying and selling signal? i am not after the auto pilots, however something that can give the trader a hint and then he/she can perform an analyse onto the chart? (maybe this sounds too si-fi')

sorry to throw all these questions on my first post!

look forrward to hear your response

regards

john

Hi John,

As with any indicator, the way you are using support lines sounds broadly OK. Sometimes support lines hold, sometimes they don't- there is no easy sure fire way of telling which way the market may go. The important thing is to notice immediately when you go wrong and cut your losses and get out, at the same time, if you get it right, let the profit run a little, don't be quick to exit at a few points profit just because you see a positive sign on your account

. (easy to say, hard to do in practise).

What you can do to improve at the moment is to continue as you are at the moment, and seek to further understand indicators and how they work, and refine your own strategy. Asking people on here may be of limited use, as it will be very hard for you to take someone else's ideas and technique and apply them to your own trading (and the people that have strategies that work very well are not that likely to be sharing them amongst everyone else).

Trading with a trend, on support and resistance lines can be effective when you learn to apply it properly. Keep reading on this one topic if that is what you understand at the moment. Do not try to take too much all at one. It is very possible indeed to take one simple thing like support and resistance and turn it into a profitable strategy. Learn as much as you can. Refine your entry and exit criteria for a trade. Repeat the above over and over until profitable.

Remember that trading is about losing just as much as it is about winning. This is stated in many places on the web. It is also well known that you do not need to get even 50% of your trades right to be profitable. (you just need to win a lot more £'s than you lose). While you are learning keep your losses as small as possible, this way if you have many losses in a row, you will still be in the game, still learning, still progressing, and one day hopefully will be able to turn it around.

Good luck and sorry i can't offer you a 'do this and you will win' strategy... but do keep pushing forwards you are thinking along the right lines.

UKTraderGirl

p.s. just wanted to add- trading signals will not necessarily make you profitable, and also will not improve your trading at all as you need to study the charts and make the decisions yourself.

You also say you are looking at smaller trends within the main trend and trading them. To improve your position yes trade the small trends within the larger ones, but only when the small trend lines up with the larger one. i.e both trends are DOWN, (or UP).

madmentrade · Nov 1, 2008

UKtradergirl said:
Hi John,

As with any indicator, the way you are using support lines sounds broadly OK. Sometimes support lines hold, sometimes they don't- there is no easy sure fire way of telling which way the market may go. The important thing is to notice immediately when you go wrong and cut your losses and get out, at the same time, if you get it right, let the profit run a little, don't be quick to exit at a few points profit just because you see a positive sign on your account . (easy to say, hard to do in practise).

What you can do to improve at the moment is to continue as you are at the moment, and seek to further understand indicators and how they work, and refine your own strategy. Asking people on here may be of limited use, as it will be very hard for you to take someone else's ideas and technique and apply them to your own trading (and the people that have strategies that work very well are not that likely to be sharing them amongst everyone else).

Trading with a trend, on support and resistance lines can be effective when you learn to apply it properly. Keep reading on this one topic if that is what you understand at the moment. Do not try to take too much all at one. It is very possible indeed to take one simple thing like support and resistance and turn it into a profitable strategy. Learn as much as you can. Refine your entry and exit criteria for a trade. Repeat the above over and over until profitable.

Remember that trading is about losing just as much as it is about winning. This is stated in many places on the web. It is also well known that you do not need to get even 50% of your trades right to be profitable. (you just need to win a lot more £'s than you lose). While you are learning keep your losses as small as possible, this way if you have many losses in a row, you will still be in the game, still learning, still progressing, and one day hopefully will be able to turn it around.

Good luck and sorry i can't offer you a 'do this and you will win' strategy... but do keep pushing forwards you are thinking along the right lines.

UKTraderGirl

p.s. just wanted to add- trading signals will not necessarily make you profitable, and also will not improve your trading at all as you need to study the charts and make the decisions yourself.

You also say you are looking at smaller trends within the main trend and trading them. To improve your position yes trade the small trends within the larger ones, but only when the small trend lines up with the larger one. i.e both trends are DOWN, (or UP).

UKTraderGirl made some really salient points. The best way to trade is to trade s/r within a smaller time period based on the overall larger time period trend.

My mentor has taught me this strategy and it has consistently been making me money for the past few weeks.

Good Trading!

jjohnjc · Nov 3, 2008

sounds like i am on the right path, just need to figure out when to buy and sell within this strategy.

cheers

john

UKtradergirl · Nov 3, 2008

jjohnjc said:
sounds like i am on the right path, just need to figure out when to buy and sell within this strategy.

cheers

john

Good luck

foredog · Nov 3, 2008

jjohnjc said:
sounds like i am on the right path, just need to figure out when to buy and sell within this strategy.

cheers

john

Sounds like you have the main part to figure out!

Have a clear plan/reason to enter trades, a simple reason you could explain to a child why you entered.....

eg i bought x because price went above y

good luck

0007 · Nov 3, 2008

madmentrade said:
............ The best way to trade is to trade s/r within a smaller time period based on the overall larger time period trend.

My mentor has taught me this strategy and it has consistently been making me money for the past few weeks.

Good Trading!

Works for me too!

jjohnjc · Nov 3, 2008

0007 said:
Works for me too!

So the method is out there,

can I get a hint from any of you experts???

are ig-index charts enough to analyse a chart???

John

UKtradergirl · Nov 3, 2008

jjohnjc said:
So the method is out there,

can I get a hint from any of you experts???

are ig-index charts enough to analyse a chart???

John

To trade simple support/resistance and trend strategies you only really need the most basic of charts.

IGIndex charts are based on prorealtime and very good charts. Very clear indeed. There is some talk of the price charts generated by Spreadbetting companies being based on their own data and not that of the market exactly. I don't believe it differs hardly at all so if you are not scalping then it won't make any difference. I would say that if you are using IGIndex to trade from, then using IG charts in conjunction would be the best way to go for the exact reason i mention above- you don't really want to be trading one set of data and looking at another, different one to analyse.

In actuality, the point i mention above will make very little difference (maybe one or two points).

So, yes, use IGIndex charts, you won't find any better out there for free

.

foredog · Nov 3, 2008

jjohnjc said:
So the method is out there,

can I get a hint from any of you experts???

are ig-index charts enough to analyse a chart???

John

Not quite support/res but an example of a simple strategy using only a chart with price no indicators or squiggly lines etc.

An inside bar, where price contracts, neither buyers or sellers are in control.

i usually trade in the direction of the day. In the chart posted the stock closed on Friday at 282.5 and is trading at 276 so down already, after a gap down price constricts for a period then breaks out and moves down.

these do not always behave like this but you'll get a few in most markets and the risk reward should be ok. This one had a risk of 2p and would've returned 6p so R:R of 3:1

I missed this one but just wanted to post it to give you something to look at.

PS i'm no expert but just wanted to help

is my technic correct??

jjohnjc

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UKtradergirl

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jjohnjc

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