My Trading Strategy - Please give feedback

[YusufG]

Hello

I am still a novice at trading (still losing money) and I thought I would try a new simple strategy going forward. Please let me know what you think.

First of all I am a part time long term trader. Meaning I will only use Daily Chart and Weekly Chart.

1. Trend - I will use the 200 SMA indicator to identify a trend on the Daily and Weekly charts.

2. I will look for Key Support and Resistance levels with price actions to make my trades.

3. I will also use Stochastic indicator to see if a trade is overbought/oversold to speculate bounces on a trend.

I also need to look into Fundamental analysis. I now understand this is important for long term traders.

I look forward to your feedback.

Thanks

Yusuf

 

[Blaiserboy]

Maybe a good idea to post some charts with documentation. If you put in the effort to document and post charts you will find that some very experienced traders will comment

 

[YusufG]

Maybe a good idea to post some charts with documentation. If you put in the effort to document and post charts you will find that some very experienced traders will comment

Great, thanks for the tip.

Take Care

Yusuf

 

[lloydbee]

Hello

I am still a novice at trading (still losing money) Please let me know what you think.

First of all I am a part time long term trader. Meaning I will only use Daily Chart and Weekly Chart.

I also need to look into Fundamental analysis. I now understand this is important for long term traders.

I look forward to your feedback.

Thanks

Yusuf

what are you trading in! -stocks?
I'm not so sure that fundamentals matter these days let alone work. That's old traders mentality I think in this day and age and I think the markets have evolved beyond it.

 

[YusufG]

what are you trading in! -stocks?
I'm not so sure that fundamentals matter these days let alone work. That's old traders mentality I think in this day and age and I think the markets have evolved beyond it.

I am currently trading Forex. You think it's all Technical Analysis now?

 

[lloydbee]

I believe technical yes, with news driven swings of over reaction. There is so many people now trading of MA based technicals and with the ever growing amount of computer based trading I see very little room out there for fundamentals to be relevant.

I am sure there would be plenty of traders that might disagree with me on this but I trade Options and fundamentals are totally irrelevant in my trading and always have been. I have traded many companies that I know nothing about only the ticker symbol and of course Option pricing.

 

[MobiusGrey]

I believe technical yes, with news driven swings of over reaction. There is so many people now trading of MA based technicals and with the ever growing amount of computer based trading I see very little room out there for fundamentals to be relevant.

I am sure there would be plenty of traders that might disagree with me on this but I trade Options and fundamentals are totally irrelevant in my trading and always have been. I have traded many companies that I know nothing about only the ticker symbol and of course Option pricing.

Depends on what instrument you're trading options. Take a long straddle on NFP day on FTSE and tell me fundamentals are irrelevant. I hear what you're saying about news driven swings of over reaction but you can't say that on one hand and then say fundamentals are irrelevant.

'orses for courses and all that.

 

[iMusingKiMi]

My advise, don't mixed technical with fundamental. Focus on 1 part and already more than enough. Technical trader avoid fundamental, Fundamental Trader avoid??? I don't know because I am fully technical.

200MA you might need days or even weeks to have a trade.

S/R are important, draw it, draw all relevant SR, Equestrian Channel, Trend Line. (Don't believe clean chart can make you money, because professional don't trade clean chart, they trade clean area).

Stochastic is good, but not for overbought or oversold use. Think on other usage, this is 1 of my indicator (another is MA and that's all)that helps me a lot in trading.

Higher Time Frame look for direction, lower time frame for entry. 1 TF trading difficult to success because you are too late to know what's gonna happen.

That's all you need,

 

[lloydbee]

Depends on what instrument you're trading options. Take a long straddle on NFP day on FTSE and tell me fundamentals are irrelevant. I hear what you're saying about news driven swings of over reaction but you can't say that on one hand and then say fundamentals are irrelevant.

'orses for courses and all that.

Yeah true, good point. My mind was more in that fundamental trading on individual stock as in pooring over the P/E's and balance sheets blah blah blah is a waste of time.