What's wrong with my system?

[oreo19]

So, admittedly, I'm a huge noob when it comes to this stuff.

I had a brief go betting on the FTSE. The system I was using was incredibly simple, and I made losses before giving it up.

The system went like this:

- Wait for the Reuters market prediction reports to be released in the mornings. (Typical example - http://uk.reuters.com/article/idUKL135804620100903 )

- Bet on the FTSE index in accordance with the prediction, and sell within the first few minutes.

I managed to make profits when I was betting in 10p's but when I switched to more serious money, the index was all of a sudden much less easy to predict - often going against market predictions from Reuters, and resulting in losses.

So, can any one give me any pointers on what I was doing wrong? Is this a fundamentally flawed way of approaching spreadbetting (as a beginner)? What should I look to be doing instead?

Any help would be greatly appreciated. (but, please. go easy on the criticism, I'm a noob! )

 

[Pi3141]

I'd read all the trading faq's on this forum for a start

 

[HowardCohodas]

I had a brief go betting on the FTSE. The system I was using was incredibly simple, and I made losses before giving it up.

A trading system is made up of two parts; the strategy and you, the trader. There is only one thing wrong with your system. It lost money.

Now you have some homework. You should qualify any strategy you might want to use by testing it on historical data, paper trading it and trading with small money before putting it in full production.

Next, you have to understand something about yourself as a trader. A poor trader with a good strategy still makes a system that loses money.

There are lots of resources on this forum for you to review. Enjoy the journey.

 

[kwickwool]

your system and way of trading is so one dimensional, come on fella, you can come up with something better than just jumping on Reuters news surely?

Everything you need is on this forum if you can seperate the BS from the good stuff and you of course have the ability to do this...............good luck.

 

[oreo19]

Thanks guys, appreciated!

Will do my homework.

 

[oreo19]

I'd read all the trading faq's on this forum for a start

Had a look around, but no luck, could you point me in the right direction?

 

[LiamH]

Had a look around, but no luck, could you point me in the right direction?

I dunno if this is a wind up but seriously, if you can't even find the forum FAQ's then you have no hope.

 

[kwickwool]

Buddy,

I give you this advice with the best of intentions for you.

Read everything you possible can, okay I will give you a starter and read bbmax system in terms of understanding ranging/trending markets, support/resistance, break outs, pull backs, possible technical indicators to use etc but and I mean this with the no agenda, this system is nowhere near complete as is any system, it is aboout absorbing as much information as you can at any given moment and making a dynamic risk assessment at each time you enter a trade. Limiting yourself to a certain system is like driving a car to a destination whilst using reverse gear and the mirror for guidance.

Watch the markets, the FTSE, DOW, Forex, Commodities, what is driving what today, sounds corny I know but watch them and watch them and get to a stage where you feel them. Continually read on this forum and if you are clever enough to put seperate the BS from the gems then good for you. Dont be a trader in a stright jacket with a specific system who when he tries any other trading outside his system fails miserably, the more you understand what is going on the better you will trade. Put systems out the window, watch watch and watch the markets. What do you see as someone who has no experience?

Good luck

 

[kwickwool]

Meant to add but must have deleted it as sat in a bar having a few pints after a good week, if you need to be spoon fed here you are probably not up to this. that is the reality on what is a brutal game where only the strongest survive and as evolution does at times will spit out the incapable at a very high rate.

 

[oreo19]

Meant to add but must have deleted it as sat in a bar having a few pints after a good week, if you need to be spoon fed here you are probably not up to this. that is the reality on what is a brutal game where only the strongest survive and as evolution does at times will spit out the incapable at a very high rate.

Not looking to be spoon fed, just given a general push in the right direction

Thanks for the advice.

 

[oreo19]

I dunno if this is a wind up but seriously, if you can't even find the forum FAQ's then you have no hope.

Found them

 

[Splitlink]

So, admittedly, I'm a huge noob when it comes to this stuff.

I had a brief go betting on the FTSE. The system I was using was incredibly simple, and I made losses before giving it up.

The system went like this:

- Wait for the Reuters market prediction reports to be released in the mornings. (Typical example - http://uk.reuters.com/article/idUKL135804620100903 )

- Bet on the FTSE index in accordance with the prediction, and sell within the first few minutes.

I managed to make profits when I was betting in 10p's but when I switched to more serious money, the index was all of a sudden much less easy to predict - often going against market predictions from Reuters, and resulting in losses.

So, can any one give me any pointers on what I was doing wrong? Is this a fundamentally flawed way of approaching spreadbetting (as a beginner)? What should I look to be doing instead?

Any help would be greatly appreciated. (but, please. go easy on the criticism, I'm a noob! )

Yes, you said it yourself. You were betting.

What happens in the first 10 minutes of the open is a gamble, pure and simple.

 

[meanreversion]

Read "Trade you way to financial freedom" by Van Tharp. It will be the best £15 you ever spent.

 

[forker]

Read "Trade you way to financial freedom" by Van Tharp. It will be the best £15 you ever spent.

Nothing beats screen time. All the books in the world won't make a trader better than screen time

 

[nunrgguy]

All I'd say is don't waste your time looking for systems and holy grails or making yourself a 'system' ain't going to work. Learn how and why the market moves, realise that a+b does not always = c in the markets and learn to trade what you see.

 

[oreo19]

Guys, thank you for all the great advice!

So, I went away and did what many of you suggested. I started educating myself using the pretty extensive resources on the forum.

My first port of call has been trader_dante's thread: http://www.trade2win.com/boards/first-steps/26947-making-money-trading.html - which has been incredibly useful, and coherently put together.

Whilst I still don't understand a lot of what's said in some threads I can summarize in saying what I have learnt: support / res levels, pivot points, fib retracements (although I'm not 100% understanding of the logic behind it, I know to use them regardless), ideal candle shapes and generally looking for confluence in the above mentioned factors.

So, right now I'm trying to use some of what I've learnt by looking at the EUR / USD on an hourly timeframe. I'm looking at a pattern, only I can't tell what the significance is or whether I'm seeing something where really there's nothing.



Uploaded with ImageShack.us

It looks like a downward sloping support / resistance, but I'm guessing there's an actual term for this?

Any criticism on what I'm doing / learning / looking for is, as always, greatly appreciated.

 

[William King]

A trading system is made up of two parts; the strategy and you, the trader. There is only one thing wrong with your system. It lost money.

Now you have some homework. You should qualify any strategy you might want to use by testing it on historical data, paper trading it and trading with small money before putting it in full production.

Next, you have to understand something about yourself as a trader. A poor trader with a good strategy still makes a system that loses money.

There are lots of resources on this forum for you to review. Enjoy the journey.

Much simple , much effective and much meaningful

 

[oreo19]

Any possible guidance on the below guys?

Guys, thank you for all the great advice!

So, I went away and did what many of you suggested. I started educating myself using the pretty extensive resources on the forum.

My first port of call has been trader_dante's thread: http://www.trade2win.com/boards/first-steps/26947-making-money-trading.html - which has been incredibly useful, and coherently put together.

Whilst I still don't understand a lot of what's said in some threads I can summarize in saying what I have learnt: support / res levels, pivot points, fib retracements (although I'm not 100% understanding of the logic behind it, I know to use them regardless), ideal candle shapes and generally looking for confluence in the above mentioned factors.

So, right now I'm trying to use some of what I've learnt by looking at the EUR / USD on an hourly timeframe. I'm looking at a pattern, only I can't tell what the significance is or whether I'm seeing something where really there's nothing.



Uploaded with ImageShack.us

It looks like a downward sloping support / resistance, but I'm guessing there's an actual term for this?

Any criticism on what I'm doing / learning / looking for is, as always, greatly appreciated.

 

[FX Bandit]

Hi Oreo,

Sounds like you're making a reasonable start.

Really focus on and learn to understand support and resistance - this is an excellent tool not just for entry but also for trade management and exits, because it shows you where areas of interest might be.

If you like the Trader Dante thread, make sure you look at the James16 Chart Thread on Forex Factory.

If you plan on using PA bars and set ups, focus only on the best and most obvious ones.

Don't forget that these can be played two ways. The price behaviour that they represent can be significant, especially if they occur at significant areas. Consider testing the outcome of fading the weaker looking set ups. This might have the added benefit of helping you to be patient enough to wait for the good ones to play. It will also help you look at each set up as something that offers you three possibilities - play, fade and leave. This is a good mental exercise to help you avoid the typical newbie trap, which is "Pin bar going up! I'm long!".

 

[oreo19]

Thanks FX, great advice; patience can indeed be a hard thing to master, so when I've learnt a bit more I'll certainly try to employ a technique of fading weaker setups.

Will study up on the James16 thread on Forex Factory too.

By the way, are PA bars just another word for Candles?