You may not be a candidate for short term trading. Eventually, trading short term is a burnout because of the affect that it's randomness and uncertainty has on the reflexive/cortisol circuit and the constant dissonance that it creates in the decision making circuit. One ultimately should migrate to a longer term time frame, as life changes and we acquire new interests and responsibilities that take up the time that was allotted and "needed" for trading. As longer time frame investing is a different animal, attempting to learn it during the "life changes" and "responsibility" period is difficult to do and it is probably best to start when you are doing the short term thing, so you will be able to have a smoother transition. Investing using tactical allocation over longer term time frames / holding periods utilizes the geometric compounding effect and the higher statistical probabilities of forecastable outcomes that accompany dissemination of information; information that is driven by fundamentals and monetary policy that becomes embedded into the "trend". Information dissemination in the equity markets over the "short term" is random. The riding of a major equity driven trend, then strategically moving to cash/bonds in infrequently occurring ( sometime deep ) declines, and then subsequently strategically buying in after the macro "bottom" has occurred, can cumulatively add up to same returns as many lower probability "scalping" type affairs attempted in "trading". The ETF's that can be used for a longer term focus - QQQ and VRB - represent the highest decile return stock universes; the small cap value universe ( VRB ) showing evidence of alpha premium vs. buy and hold benchmark back to 1927, and the QQQ ( back to 1985). The constituents of the QQQ ( Nasdaq 100 ) have always included the best mid cap growth stocks in the world (AAPL, AMGN, GOOG, MSFT, TSLA for example ). No need to pick individual stocks. I "traded" in the past, but ran into the "life constraints" that I described above and have found that benefits of the longer term tactical approach free up my time and ease my mind by the much fewer decisions that I have to make.
Get rid of indicators and oscillators and study/analyze PRICE ACTION. There are THREE aspects to PRICE ACTION: 1) Bar-By-Bar Analysis (à la Al Brooks and others) 2) Price Pattern Analysis (eg. Double Top/Bottom) 3) Pivot Analysis (Support/Resistance and Trendlines)
Best balance between simple and effective has Support/Resistance level. Even newbie can feel it intuitively while with some practice you can be quite experienced at defining them. When I just open my first account with Hotforex I was pure S/R+ news trader.. Good luck
Buy low, sell high. -- that's all there is to it. ...but don't expect anybody to reveal the exact details or process or methodology. ...that would be like giving a map away to your gold mine. (the good news though, there are multiple gold mines to be discovered)
http://www.elitetrader.com/et/index...rategy-that-works.162375/page-21#post-4077218 http://www.trading-naked.com/mb-macd-conservative-setup.htm Good Luck.
That's what the whole thread's about. Mysteron's post at the top of page 2 is the one the OP needs to read and understand, but he won't like it. The theory that finding a system that "just works", and copying it, can profitably be executed instead of gradually acquiring patience and discipline, understanding, experience and education, is all too widely believed. Systems don't "work": traders do.
The guy who says "should of" and "could of" is dissing another country's education system. Hilarious. And you're from the place where English was created. Too funny.