I currently trade looking and chart with indicators, draw trend lines ect to make my decisions. I really want to start trading more objective. I noticed my performance is often based on my moods. I know trading mechanically will solve this what is the best way to start?
If you want objective analysis, learn to test your ideas with statistical tests. Test every idea to see if it's better than random, i.e. significant.
Learn how to code you ideas using Amibroker, Wealth Lab, Trade station or some other program. You need 3 things: entry conditions, exit conditions and money management. Test your ideas.
There are software packages available that will let you backtest any scenario, and build a system around the results. I use and recommend Investor Rt at www.linnsoft.com. For about $100 a month, you can get the backtesting/charting package with a data feed from another vendor. Cancel any time. Whatever software you use, it will help you take the emotions out of your trading, which as you've already discovered, is a key to being profitable.
have u seen some of the data? systematic funds underperform discretionary, and drawdowns are much bigger for systematic funds. in long run im told, discretionary will outperform. *note "systematic" do not include arbs
I like the first Market Wizards book. Jesse Livermore wrote a book titled "How To Trade In Stocks" that I think is pretty good. I like the Nicholas Darvas book "How I Made $ 2 Million In The Stock Market". Elitetrader.com has lots of examples of system trading. Here is my study of a Zweig system: http://www.elitetrader.com/vb/showthread.php?s=&threadid=76216 I like Murray Ruggiero's thread on "Developing A Trading System Step By Step": http://www.elitetrader.com/vb/showthread.php?s=&threadid=62291
These will help get the thought process in the proper order. http://www.amazon.com/Modeling-Financial-Markets-Basic-NET-Management/dp/0071417729 http://www.amazon.com/Building-Auto...troduction/dp/0750682515/ref=pd_sim_b_title_1
I would ask , What do you think about TradersStudio , I have seen some very good comments on this site about it. I have a day job so I need to place my orders before work