unilever03
Newbie
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Hi,
The purpose of this thread is to ge advice on whether im going about trading in the 'right' way, or in a way that i can progress at least! Here we go:
I have been learning about various financial instruments, tradings strategies, technical indiators etc etc etc for about a year, and it is a vast and if i'm honest a little intimidating world.
There is a wealth of information available, and it is quite overwhelming sometimes. Over the past few months I have become involved in spread betting. I am finding it difficult to get a bit of clarity when it comes to trading. I realise there are countless strategies, technical indicators and whatnot and I would like your opinion on my plan to progress my trading.
I want to develop my own trading strategy. I have been looking at trend following.
I have been writing down my thoughts recently in an attempt to stay on track, here is the beginning of it.
PLAN
• Aim is to be able to identify the tops and bottoms of trends as accurately as possible, therefore maximising profits from a trade.
• By using technical analysis of different instruments I should be in a better position to make successful trades.
• There are hundreds of tools for analysis available, and I need to identify which ones work for me and for the individual instrument I am trading.
• I need to get a general knowledge of technical analysis tools, and through testing them, discover which are most effective.
In terms of testing tools for technical analysis,
I intend to look at two approaches to deciding which tools to use:
1. Pick a tool, and see if it is able to identify trends effectively.
2. Get historical data and identify the trends, then see which indicators identify the trends most effectively.
Once I have a good grasp of the power of different tools for different instruments, I need to put my strategy together, and do back-testing to see how effective it is on a variety of historical data (stocks, commodities, boom, recession etc.). It must be fine tuned before paper trading to see how it copes under today’s market conditions.
*i know 1 and 2 may seem like the same thing - basicly is except for doing it opposite way round
This is where I'm at right now. I have recently found this forum and know there is a lot of useful information, just too much of it!
The points above are a summary of what I am intending to do, I know it is so easy to say things like 'find which strategy suits my personality' and i am not for a second thinking it is that easy. If one thing is clear from what i have read, learning to trade will take a long time, and it won't make me rich. Please could someone help point me in the righ direction. Am i going about this the right way? This is a long post, i have blabbered too much, thanks for taking the time to read it and for offering any opinions.
The purpose of this thread is to ge advice on whether im going about trading in the 'right' way, or in a way that i can progress at least! Here we go:
I have been learning about various financial instruments, tradings strategies, technical indiators etc etc etc for about a year, and it is a vast and if i'm honest a little intimidating world.
There is a wealth of information available, and it is quite overwhelming sometimes. Over the past few months I have become involved in spread betting. I am finding it difficult to get a bit of clarity when it comes to trading. I realise there are countless strategies, technical indicators and whatnot and I would like your opinion on my plan to progress my trading.
I want to develop my own trading strategy. I have been looking at trend following.
I have been writing down my thoughts recently in an attempt to stay on track, here is the beginning of it.
PLAN
• Aim is to be able to identify the tops and bottoms of trends as accurately as possible, therefore maximising profits from a trade.
• By using technical analysis of different instruments I should be in a better position to make successful trades.
• There are hundreds of tools for analysis available, and I need to identify which ones work for me and for the individual instrument I am trading.
• I need to get a general knowledge of technical analysis tools, and through testing them, discover which are most effective.
In terms of testing tools for technical analysis,
I intend to look at two approaches to deciding which tools to use:
1. Pick a tool, and see if it is able to identify trends effectively.
2. Get historical data and identify the trends, then see which indicators identify the trends most effectively.
Once I have a good grasp of the power of different tools for different instruments, I need to put my strategy together, and do back-testing to see how effective it is on a variety of historical data (stocks, commodities, boom, recession etc.). It must be fine tuned before paper trading to see how it copes under today’s market conditions.
*i know 1 and 2 may seem like the same thing - basicly is except for doing it opposite way round
This is where I'm at right now. I have recently found this forum and know there is a lot of useful information, just too much of it!
The points above are a summary of what I am intending to do, I know it is so easy to say things like 'find which strategy suits my personality' and i am not for a second thinking it is that easy. If one thing is clear from what i have read, learning to trade will take a long time, and it won't make me rich. Please could someone help point me in the righ direction. Am i going about this the right way? This is a long post, i have blabbered too much, thanks for taking the time to read it and for offering any opinions.
