My Strategy

fernanj

Junior member
32 3
I have noticed along the lines that many of your new (starting out) traders write in for various types of advise from other members on this T2W site, I hope that the following will be of some use to them or just good reading in some cases.

I have been trading on and off for a number of years always trying to make sense of the markets that I trade. In the early days I was feeding big money to a lot of unscrupulous people selling expensive courses and seminars to teach me how to trade. I tried their trading methods and always ended with a very depleted trading account. I learnt a hard lesson and have been self-taught ever since. Now I buy books after books on trading and psychology though some are just not worth the paper they are written on.
It’s only recently that I have been in the money after applying my self-taught knowledge of TA (my trading is 98% TA, I have no time for Fundamentals).

It is a know fact that methods that work consistently for one trader do not necessarily work for the other, this is not because of the type of TA soft ware used but mainly because of the mental and emotional variables applied (consciously or otherwise) in assessing a particular trade or position. Although I had registered with T2W a while ago my input was minimal but I almost always access this site though I do not “log on” I read what most T2W registered members contribute and I must admit in comparison to other sites, a decent and helpful bunch seems to exist here. Trading is and can be a lonely game, hobby or profession (call it what you like) personally speaking I draw some comfort from sites like T2W and its members.

My trading is mostly short term lasting a couple of days to a couple of weeks and I only spreadbet the FTSE 100 stocks I really don’t care which stock I trade and I have made some good money by sticking to my simple strategy.
I start off by looking for a stock in a trend about to reverse and one that is hovering in the extreme overbought or oversold position.
I use all the following TA Indicators which must confirm what I am looking for otherwise it is a no go for me. RSI, Stochastic and CCI must indicate O/Bought, O/Sold or Divergences. Accumulation and Distribution, money flow, Bollinger Bands must show favour to the position I am about to take, not forgetting the very important and reliable indicator that tells me when to enter a trade is the Candle stick formation. I also use the C/Stick chart to work out where to place my Stop losses and exits, again observing and taking into account all other unsuspecting and sometimes not too obvious resistance, supports and gaps.

I believe a thorough understanding of all these indicators and how to interpret them is paramount in my trading and a very clear understanding of Candlestick charts takes prime position. Some traders will probably think I am using too many indicators…its my method and it works for me so why fix something that works for well over 80% of my trades, I still consider my self to be on the learning path, I do not let others tell me I am wrong I have had enough of them in my early days of trading.

I trade small and on a consistent basis with a sensible money management strategy (stop loss, stop loss & stop loss), when I place a trade I know exactly how much I stand to lose and not how much I intend to win. I am not there yet but when one is learning its better to start off with gloves that fit than to try and fit myself into those that are not right for me.
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Disclaimer:
No investment decisions must be made on the basis of this information. Doing so shall be entirely at your own risk.
 

Riz

Experienced member
1,266 5
Thanks Fernanj, agree everyone should stick to the system that works best for them no matter what others use, still keeping an open mind on whatever else available though, good luck

Riz
 

Naz

Experienced member
1,391 22
My Stratergy.Not for beginners.Spread betters or CFD players.Only for level 2 Nasdaq direct access scalpers.We tend to forget all about these wonderful guys/gals.Dont forget they help supply liquidity for all the t/a players that like a little confirmation before they get in. :)

Make sure you are very proficient at Nasdaq level 2 direct access. I use a scanner and input for finding very liquid stocks that have just realy collapsed in the last two minutes,the bigger the fall the better.

I look once and only once at the chart to see where they've come from.Then i just concentrate on the level 2 screen.I watch the players and get ready to buy the bounce.I look for ++++ve signs on the screen and then i pick an entry that gets me in but adds to the +ve momentum so i've just created another +ve sign to the players.ie a choice of just buying some from island or all of another ECN.I would completely take out the ECN at one price level because it not only gets me in but it shows more momentum by removing supposed resistance.I make sure that all the time i'm CONSTANTLY teeing up my stop and know who i'm going to hit and which order to use if we go for another leg down.As soon as i'm in,i place half on the island book at a scalp level,hiding infront of others (best order is a proprietry order island -,that is hot keyed on my key board,or do it manualy) and the other half further away.I have my keyboard hot keyed to cancel all orders with one stroke.If it holds i sell half on the scalp,bring my stop to break even and run with the rest.Cancelling the second island order if it looks strong and i'm going for the bigger move. Sometimes i've just grabbed the low of the day,made the scalp and running the rest.If its inconclusive i just scalp the whole position and watch the pullback.

Nasdaq level 2 direct access scalpers are often forgotten,this ones for you.
 
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