building a plan

Discussion in 'Strategy Development' started by jacobnbr1, Nov 13, 2005.

  1. jacobnbr1


    can somone help me with creating a plan or method to follow?

    want to build a plan for like swing trading, looking for being in trades from 1 week to 2 months. i have done trading by ta and they seem to turn into investments or break even trades.

  2. balda


    Investments - hold and hope? loosing?
    • Lower your expectations.
    • Trade appropriatly with the amount of capital that you have.
    • Have a day Job.
    • Trade with an Uncle Point.
    • Use Excel spreadsheets.
    • Keep a trading Journal with printed charts and notes on them.
    • Find yourself. Reject everything else.

    Now get out your spreadsheet, plug in some formula's, go to work, observe what happened with your idea's...start over the next day. It will come to you, if you have OBSERVATION skills.
  3. Deptrai


    Trading what? It is not really easy being a swing trader. Psychologically it could be draining. You must be willing to delay gratification. You will be forced to think deeply everyday. So if you are patient and a thinking man, then it would suit you. I am a forex swing trader. I make it interesting by stacking my winners, though not all the time. It depends on where I think we are in the wave count. My losers I immediately cut loss. I don't carry them day to day because it is too stressful. I won't know if I can help you until I find out what you intend on trading. Stocks? Index futures? Bond futures? Forex?


  4. Now here is a homework project.
    • Take the 20 DOW componets and plot their 14 day RSI and add up those values into a single number.
    • Open up a spreadsheet and plot that number in a column.
    • Then I want you to look at the Futures instrument "YM" and plot its O/H/L/C.

    See if there is anything you can observe...I have no idea..I just came up with this to teach you how to use the spreadsheet, during your off times from work (there is one Holy Grail and that is the one that you can find for yourself, that you can trade and that fits your personality)
  5. jacobnbr1

    I am curious. What kind of questions would you ask?

    • Is there a predicting effect of the value of that "Cumualtive Instrument RSI Value"? If its larger than x then the next days trading will yield an MFE of ? and MAE of ? (MFE=Maximum Favorable Excursion...MAE = Maximum Adverse Excursion)
    • Does the net change of this "Cumualtive Instrument RSI Value" from day to day reveal any linear accelerations?

      The observations are up to you....try to find some consistency. Then thats a are 10% of the way there.
  6. Keeping it simple first requires an understanding of what is complicated....
  7. balda


    This is example of complicated.
  8. come on balda...let the kid struggle like all of us did....he got's' to get into synch somehow.

    oh I know read a lot of books....the trend is your managment is key...bla bla bla
  9. Lower your expectations, Have a plan for your vision. Build your business brick-by-brick.
    #10     Nov 13, 2005