Basic Strategy.

[mike.]

Ok, I'm looking for some pointers to develop a basic strategy, Not looking for your best kept trading secrets just something i can work on and add to, Like a list i can put up to discipline and remind myself this is what i should be doing, Everyone says that you will fail without having a strategy, so what is a basic one ? I feel at home short term spread betting, a mixture between scalping and day trading so im looking to develop it around this, all comments and advice much appreciated.

 

[Vorbis]

You could do a lot worse as a starter than reading everything on this site:

No Brainer Trades - Trading Forex and Other Markets Using Globally Identifiable Actions

My general advice would be:

Don't be suckered by all the claims of easy money by the system sellers, there is no holy grail, use a bit of common sense and you should easily be able to identify and avoid the myriad of snake-oil salesmen.

Never take anything on trust and check everything for yourself; There should be sound logic behind any proposed methodology and if it is legitimate it will prove itself by it's actual performance, don't risk any real money until it has done so.

Good Luck.

 

[mike.]

Thanks for the info, just having a look through the site now,

I guess what im looking for is, people say write everything down, like what went wrong with a trade etc,
So, How do i know what went wrong ? The chart went the wrong way! why ? no idea, it does that.
let winning trades run they say, but they also say dont be greedy. so, where is the T/P point ?
Keep stop losses tight they say, they also say don't get scared out.
Im looking to find out advice how people trade and their discipline's rather than a algo strategy.

 

[hacks]

You could write down why you entered a trade and why you exited; that would help a lot.

 

[mike.]

You could write down why you entered a trade and why you exited; that would help a lot.

Im going to be short term spread betting until i gain some experience,

I enter a trade when the price is below its weekly average and starting to rise, or, short it vice versa, so nothing of any great significance really to write down, or should i be keeping a diary of price action ?

 

[hacks]

If you deviated from your system then you should write down why, e.g. if any emotions were involved (hopefully not).

If you're really serious you could backtest your system on historical data. IG Index have advanced charting with backtesting, although this costs 30 a month if you don't trade with them (i think 2 per month). There are other software with the backtesting facility, such as Metatrader (free).

 

[mike.]

Im currently using Tradefair and capital spreads which have charts supplied by " time to trade.eu " they seem good charts and incorporate a backtesting option but i am unable to fathom it out.

 

[rsh01]

Mike - you should read trading journals (on this and other forums) for strategy examples and work it out for yourself as its such a personal journey, we wld be wasting our time listing out basic strategies for you.
If you like the style re vorbis' link then go checkout his website No Brainer Trades - Trading Forex and Other Markets Using Globally Identifiable Actions.

 

[mike.]

Mike - you should read trading journals (on this and other forums) for strategy examples and work it out for yourself as its such a personal journey, we wld be wasting our time listing out basic strategies for you.
If you like the style re vorbis' link then go checkout his website No Brainer Trades - Trading Forex and Other Markets Using Globally Identifiable Actions.

Many thanks for the feedback, I think i've made a typical noob mistake by getting strategy and trading plan mixed up, What im looking for is a trading plan, a list of must do's and definitely don't s, I came across a comprehensive list somewhere but im dammed if i can find it again

 

[StayOnTarget]

1, Start with as small a bet per point as you can, your objective (at this stage) is to learn how play your system out, not to make money (as it's unlikely that you will).

You should figure the rest out as you go along...

It's fun, it's not easy, good luck...

 

[NVP]

You could write down why you entered a trade and why you exited; that would help a lot.

yep..and a hint .....you learn absolutely dick from winning trades

 

[NVP]

1, Start with as small a bet per point as you can, your objective (at this stage) is to learn how play your system out, not to make money (as it's unlikely that you will).

You should figure the rest out as you go along...

It's fun, it's not easy, good luck...

agreed ...........Read everything you can soak up....Everything

all the boring but must have stuff is pretty consistent out there like below so mop that up in a jiffy ......

money management
risk management
stop losses
brokers

then look at methodologies / systems ....forget the different markets as that comes later...pick a market ..........Dow or ftse indices are simplest to understand

and then try out all the mainstream systems and experiment .......you will soon find something that appeals to you.....

price action / patterns / candlesticks
MA's
MACD / Stochastics
RSI
Fibonacci
SAR

the list is endless but I still suspect inside 10-15 methods you will have then seen 99.9% of whats out there.....as the rest is just copies and adaptations of these core ideas

most of these are already loaded on platforms like MT4 anyway

I have been in and out of trading since the 1980's...in the early 2000's I returned after a couple of years out again ....and spent years experimenting and playing again ......so it takes time !

but you will find your path ..and in the process you will also become knowledgeable about whats out there ...and you will realise that most decent system can make money as long as the trader applies them correctly and has their head screwed on the right way ..:smart:

N

 

[mike.]

agreed ...........Read everything you can soak up....Everything

all the boring but must have stuff is pretty consistent out there like below so mop that up in a jiffy ......

money management
risk management
stop losses
brokers

then look at methodologies / systems ....forget the different markets as that comes later...pick a market ..........Dow or ftse indices are simplest to understand

and then try out all the mainstream systems and experiment .......you will soon find something that appeals to you.....

price action / patterns / candlesticks
MA's
MACD / Stochastics
RSI
Fibonacci
SAR

the list is endless but I still suspect inside 10-15 methods you will have then seen 99.9% of whats out there.....as the rest is just copies and adaptations of these core ideas

most of these are already loaded on platforms like MT4 anyway

I have been in and out of trading since the 1980's...in the early 2000's I returned after a couple of years out again ....and spent years experimenting and playing again ......so it takes time !

but you will find your path ..and in the process you will also become knowledgeable about whats out there ...and you will realise that most decent system can make money as long as the trader applies them correctly and has their head screwed on the right way ..:smart:

N

Tidy post, many thanks for taking the time.