fernanj
Junior member
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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.
***********************************************************
Disclaimer:
No investment decisions must be made on the basis of this information. Doing so shall be entirely at your own risk.
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.
***********************************************************
Disclaimer:
No investment decisions must be made on the basis of this information. Doing so shall be entirely at your own risk.
