technical analysis

[hammer]

Hi everyone,

Im a new trader, well 3 months now. I am trading small time at the moment on the dow at £1 with d4f. Im still in the learning process and using i guess very crude charting judgements to trade. Currently studying 'technical analysis of the futures market by john murphy'. Was told it was a good book to read to get an idea of technical analysis. It has given me alot of tools and ideas and has definitely improved my confidence on trades.

I guess the reason for this thread is that i have knowledge of some of the technical analysis tools but no charting software or good data to use them on. I have seen alot of charting software but at ridiculous prices. I cant at the moment afford the proffesional stuff and quite frankly dont need it at my current level of trading. Have so far printed out charts and done what i can on them but this gets tedious and i need to step up the TA a little now, i think!

Can anyone suggest any software or any good sites where i can learn more on technical analysis and put some methods into practise?
Any guidance in the right direction would be much appreciated. :cheesy: thx!

 

[Rognvald]

Try
http://bigcharts.marketwatch.com/
as a start

 

[Trader333]

Try www.quotetracker.com which is FOC and has a number of data sources (some I believe are FOC) which would give you an idea and the opportunity to practice.


Paul

 

[Glenn]

www.stockcharts.com
You can add indicators, use candlesticks etc etc.
Or just use naked charts (much better imo)
Glenn

 

[smileypete]

hammer,

It's best not to worry about the more esoteric indicators until you have mastered the basics like support/resistance and trendlines, and for this CMC's software is good enough.

One thing to watch out for with CMC is that their feeds spike at certain times, but if you're aware of this it shouldn't be a problem.

Hope this helps,
Pete.

 

[kevin546]

Hammer

Are you daytrading or longer term.

As a cheap starting point subject to which indicators you wish to use why not make use of D4F own charts especially as you will be trading from there prices.

When I turned to charting I read the same book and it is great for giving you an all round knowledge of how each of the indicators and charting works. I made good use of 3d charting for longer term positions which someone has already said you can use www.bigcharts.com. A free site where you can use a number of tools although the indicators are pre-set. If you want your own settings then you can use www.advfn.co.uk but they do not offer upper indicators other than moving averages.

I find for my daytrading I can get by with D4F because I focus on price movement and trendlines. I use ema bands on the 15 min chart but do not use lower indicators because it can reduce the size of the chart and I do not think much of them. The only one I would use is the MACD for divergence but I have learnt to work without it.

I have found that we can spend to much time looking for he best indicator and forget that price is the important one.

I would not rush into buying expensive charting until you have found the best set-up that you can work with. The end of day data that you get for free with the sites I have mentioned will be a good start. US charting is much cheaper than UK real time. If you are to daytrade US then if using other charting you will see the SB difference or bias that is why I prefer to work with a chart of the prices I am trading from.

I know D4F 24/7 charts can be awkward to follow from the longer term but for my FTSE deals I look to the monthly chart to give a normal chart appearance (8 - 4.30pm, daily) and then the cash for intraday charts. Dont think this applies to US indicies but does to UK companies not sure about US companies.

Hope this is of some help.

Look to develop a compete trading plan, trading is not all about the charting and entry. You must consider which set-up works best for you, then establish a stop policy and money management risk etc.

 

[BBB]

For US Stocks try www.prophet.net The Java charts are excellent. I used this site extensively when I was position trading.

 

[hammer]

thx guys really appreciate the response and some great links.

Will let you know how i get along....

...and if i get stuck! :cheesy:

 

[hammer]

Hi,

Just letting you guys know, my trading is going well. Already doubled my capital with only 3 trades on the forex (GBPvsUSD). Only trading small amounts but it is adding up!

Thanks alot guys. :cheesy:

 

[ChartMan]

Jeez, what if they had been 3 losing trades? Would that have wiped you out ? Making 100% in 3 trades is astronomically good. Did you really risk so much?

 

[Grey1]

hammer

I could double my money in 1 go .. But I have to take 50% risk ..

50% risk against doubling my money ? what do you think guys ?

Would you take the bet ?

 

[Halfbutt]

IMHO
Im not sure that 3 trades of this size will be of benifit to you in the long run. I dont want to sound negative , but this may make you feel this trading "malarky" is easy money, and its not. If your not careful you could drop the lot in one go.
Ive used this site for 5 months or so and i can recall many new people opening threads and saying how well they are doing and low and behold 6 weeks later never a thread from them !!. Have they lost their cash and are licking their wounds and suddenly find this hobby not as much fun.

I dont usually send negative replys and please rest assured , i graciously wish you all the success for the new year.

regards
Slow but steady Halfbutt

 

[hammer]

Well i haven't really risked that much money. As i said im only starting with little capital and therefore im only trading £1 a point. But the forex climbed like 100 points the other day. Of course i didnt benefit the whole of that but using the trailing stop meant that i could slowly guarantee myself more and more profit. Even though ive doubled my capital im still betting only £1 a point so i guess it will take longer to double it this time.

I have listened to you guys and am betting as little as i can, and maybe ive been a bit lucky so far. But im not gonna get carried away. Ive heard too many stories of people getting wiped out when they do.

Really appreciate the concern guys. Im hear for the long run, been doing alot or reading and used alot of simulation accounts before i even risked a penny. Even now im not placing that many trades. Only when ive done the analysis and am sure.

thx

 

[oatman]

It's easy to make money...........it's easier to lose it :cheesy:
Hammer, have you had a loss yet :?: :cheesy:

 

[hammer]

yep, ive had losses. I guess i shouldnt be so happy about my wins cos i could lose them all in 1 trade! I haven't been in the game long enough to see if i can really make money or not. But i guess time will tell.

But you can't blame an amatuer trader for being a bit happy when he makes a bit of money can you? But i know exactly wot you guys are saying and i won't get too happy. Im gonna stay focused on making money in the long term and keeping it!

But in the mean time :cheesy: :cheesy: :cheesy: lol!

 

[BBB]

Making money in the markets can be hard. Keeping hold of it can be harder!

Grey 1 - Yea I would take the bet - but not with my money!!!!!!

 

[hammer]

i currently have a long position on the dow. Im looking for it to hit 10500. I opened the position on friday at 10401. I have moved my stop to 10401 now so won't lose any money from the trade.

Should i hold out till 10500 or more; or shall i take my 55 points profit and exit the market? Any advise and reasoning would help.

Thx :cheesy:

 

[FTSE Beater]

Hi Hammer

Well done on raising your stop to break-even
I personally would cut half when you think the move is over and let the other half run to either the stop or the target. That's without looking at the chart.

One thing I would say, is that asking what to do during a trade isn't a great idea. All exit plans and "what if" scenarios should be in your trade plan before you enter the trade. Before a trade, you have all the time in the world to plan, prepare and execute. During a trade the emotions are higher and it makes it a lot harder to think clearly.

Just my thoughts .......and it doesn't constitute trading advice!

 

[hammer]

Thanks alot ftse beater.

My plan was to let it grow to 10500 as it hit that on friday and met resistance as per my analysis. That is when i entered the trade. I don't want to be greedy as i am only starting out i am glad with small profits.
But i was told to cut losses quickly and let my profitable trades run. Now im not so sure, case of emotions coming into play during a trade i guess!
I think i will let it run and cut half my trade out as you suggested as this will still mean i make profit and will give me a chance to learn a bit more without risking any money. Great!

Thanks alot

 

[ChartMan]

No advice here, but if you followed my Dow analysis, you would be closing ( just ) at 10, 536, which you should find is the top for today. The reason being that the Dow has just produced the expected 3 pk ND top.....