a good trading strategy is this …..

This was what my forex trading coach taught me.

He was a great snake oil seller.
He was very good at selling fridges to the Eskimo.

 

Im not good at selling fridges but I am good at trading stocks..

 

I threw an eskimo a house warming party and his house melted.

 

Today I traded PLUG as I mentioned in another post. It was up nicely in a bad market. While it was trading at 25.25, I said it should see 26 today. It went right through 26 and guess where it completely stopped at ? The 50 dma…..

 

Stopped at it huh? 50 daily MA superimposed on a 1 minute chart. If only:-

 

I sold PLUG just under 26. It went straight through it and hit 26.50 and closed at the 50 dma.
Moving averages matter !

 

Exactly, it went straight through it ... because it doesn't matter.

And it closed above it because the stock was strong and not because a meaningless squiggly line was there.

 

PLUG stopped right at the 50 dma.. Moving averages matter when trading !!!

 

Hahaha

 

I feel like finding a good trading strategy is a never ending process and this is the one thing for which you can’t take help from some other traders. You need to develop your own strategy on the basis of your own personality type. Here I am continuously re-evaluating my strategy to fit in all the parameters.