Am I on the right track?

[Iotrez]

Hi all,

As a beginner I'd appreciate it if anyone could give feedback on my how I've been practicing trading on a simulator.

I'm looking at the charts on a scale of 1 month(Yahoo Finance charts.).

The indicators that I'm using are:


-Exponential moving average

-Volume

-Bollinger bands.

-Williams %

I'm selecting companies to buy stock where the price has gone right down below the bollinger bands envelope and where the Williams % is very high indicating that the stocks have been over sold.

Or, where the price is moving back up from a low point and there is alot of volume.

Have I got the right sort of idea here?

Thanks for any tips.

 

[tomorton]

lotrez -

seems as good as any other TA-based system, except it just shows entry points. Of course, you only make money after entry but that's when you lose it too. The test of a system is how it reacts when the plan goes wrong.

Also, you can only win the game if you're still in it, and money management keeps you in the game.

You've come to the right place for one-liners haven't you?

best wishes

 

[fibonelli]

Lotrez

I'm a trading newbie too.
You need to define the closing trade as well as the opening trade.
You need to backtest your trading plan over at least 1 year and see whether it worked.

 

[chump]

I'd stop where you are for the moment and really devote as much time as you can to reading through what this site as to offer you ,knowledge lab , tradepedia etc. You're clearly not yet equpped to take this further without building your knowledge base first. Take your time the markets will still be there when you're ready.

 

[andycan]

I'd stop where you are for the moment and really devote as much time as you can to reading through what this site as to offer you ,knowledge lab , tradepedia etc. You're clearly not yet equpped to take this further without building your knowledge base first. Take your time the markets will still be there when you're ready.

second that!!

 

[jacinto]

I'd stop where you are for the moment and really devote as much time as you can to reading through what this site as to offer you ,knowledge lab , tradepedia etc. You're clearly not yet equpped to take this further without building your knowledge base first. Take your time the markets will still be there when you're ready.

three of us

 

[dbphoenix]

Start here:

http://www.trade2win.com/boards/showthread.php?t=22514

 

[andycan]

Start here:

http://www.trade2win.com/boards/showthread.php?t=22514

i beg to differ db

this is far better

http://www.trade2win.com/boards/showthread.php?t=22882

 

[dbphoenix]

i beg to differ db

this is far better

http://www.trade2win.com/boards/showthread.php?t=22882

They'll be tied together eventually . . .

 

[andycan]

They'll be tied together eventually . . .

very cool

 

[damianoakley]

Hi all,

As a beginner I'd appreciate it if anyone could give feedback on my how I've been practicing trading on a simulator.

I'm looking at the charts on a scale of 1 month(Yahoo Finance charts.).

The indicators that I'm using are:


-Exponential moving average

-Volume

-Bollinger bands.

-Williams %

I'm selecting companies to buy stock where the price has gone right down below the bollinger bands envelope and where the Williams % is very high indicating that the stocks have been over sold.

Or, where the price is moving back up from a low point and there is alot of volume.

Have I got the right sort of idea here?

Thanks for any tips.

Hi Lotrez,

I would say that the principles behind the method of entry you have described seem reasonably sound, but you now need to look at some other potentially more important parts of your trading strategy:

Where will you place your initial stop?
How (if at all) will you move your stop as the trade develops?
When and how will you exit the trade?
How many shares of stock will you buy for each trade?
How many stocks will you hold at any one time?

Remember that your Entry is just one small part of a trading strategy.


Thanks

Damian

 

[fibonelli]

Hi Lotrez

I'd recommend that you read the Market Wizards books if you haven't done so before you risk one penny/cent.

This is the cheapest way to learn how the great traders blew up their trading account in the beginning of their career and you will also learn about the importance of patience, discipline, discipline, discipline, discipline!........ psychology, backtesting your trading plan, following your trading plan, money management, position size, placing of stops, profit setting, cutting your losses quickly and optimum trades only etc.

I'd recommend that you use the T2W website as a learning resource too as the other T2W members have suggested.

 

[damianoakley]

Couldn't agree more about the Market Wizards book.

It can be reassuring for beginner traders to read about how some of the world's best traders blew their accounts at the beginning.


Thanks

Damian