new to trading

Discussion in 'Professional Trading' started by netstatan1, Jan 5, 2010.

  1. Hey guys,
    Im new to trading and just started working on developing a trading stradegy. Does anyone have an good solid stradegy that i can start off with or help point me in the right direction. Any help would be great thanks.
     
  2. GE2009

    GE2009

    I am a new trader as well. The best and easiest way to trade is using a trend following system. Use the 20 and 55 day moving averages to signal buy and sell signs. Once you get better at it, read into some more technical indicators (Volume, Sentiment, etc) such as trend lines, RSI, and advance/decline lines for example to add strength/weakness to your signals. Check out the book Way of the Turtle (Faith), Technical Analysis Plain and Simple (Kahn), and Market Wizards (Schwager).
     
  3. TA works better in longer time frames, (weekly bars)


    intra-day, take the opposite side of chart patterns
     
  4. lots of threads like this on ET. Do some research and read them...

    In summary, this will likely take far more time, far more money, far more energy than you can ever imagine, and your chances of longterm wealth are probably less than 0.5%.

    Also, most of the people who respond to you would fit your own self-definition.
     
  5. NoDoji

    NoDoji

    Good advice, GE.

    A 20-period moving average is one of the best guides to entering an existing trend in any time frame, entering when price is at or near it (long if it's rising, short if it's falling).

    Once a trend has made 3 strong pushes in a given direction, watch for signs of a deeper than average pullback. This can be a good counter-trend play and sometimes indicates a true trend reversal, depending on the time frame you're playing.

    The safest counter-trend play is to wait for a higher low or lower high after 3 or 4 legs in the trend. I find this to be a high probability trade, and generally signifies the beginning of a new trend.

    In fact, higher lows and lower highs are also your solid entry points in an existing trend. If you study charts with a 20-period moving average for reference, your higher lows in an uptrend and lower highs in a downtrend follow the rising or falling moving average quite well.
     
    dratsum likes this.
  6. Hey there, I dont find its about finding one strategy and using it, you need to first decide or through trial and error see what type of trader are you? Shorterm intraday? Swing? Medium term hold? technical analysis junkie? etc etc. Then you need alot of screen time, and alot of notes,I have over 3 binders of strategy notes and trades over last 8 months of trading where I find what works and what doesnt based on my personality and comfort levels. Im a day trader and make between 15 and 30 trades a day so tape reading, understanding the inside market and level 2 and understaning correlating factors,levels and important prices are my tools I use to formulate many different strategies. SoId say you first need to know what type of trader you may want to pursue and then do some research on your choice. Anyways hope that helps!
     
  7. 30 trades a day, Damn. I'm only doing 5-7. that's about all the brain can handle. I guess I'm a young middle-aged guy. scrap the middle-age!

    THen again, my daily trades are increasing with the flow and experience. a year ago I was only doing 3-5 per week!

    Yes, I follow trends and always grabbing the "no reason" dumps and bounces from them!
     
  8. bstay

    bstay

    what is the preferred instrument to trade? stocks, options, futures, forex, ...... any advice?
     
  9. I started with stocks my self, options and other derivative securities can get complicated.
     
  10. Trader D

    Trader D

    Good technical advice by GE but what about the fundamentals.
     
    #10     Jan 10, 2015