Support needed

Discussion in 'Professional Trading' started by epetrov, Mar 23, 2008.

  1. epetrov


    Hello guys,
    I've been studing TA since 4 1/2 years ago. Un to now I have read many books, forums, experimented a lot with the markets.
    Nevertheless I can not reach positive results. Now I again papertrade in order to improve. Am I unlucky or I do something's wrong?
    I use a simple strategy - enter the market just after the breakout of correction moves in the trends. I use also AmBroker in order to screen the market. My setups are either swing trades or day trades.
    So, is there anybody who can support me with my effotrs. General statements like: you can do it, continue to persist, just do it, it takes a time - do not help me at all. I feel as an idiot w/o real support. Now I have 4 stocks to watch for Monday.
    You can freely contact me by personal message or by the forum.
    Looking forward to your reply.
  2. BSAM


    Watch only 2.

    Are you using indicators for day trading? If so, quit using them.
  3. bathrobe


    I do not trade stocks but the same methods still apply:

    Do you use volume on your charts? this is often overlooked but is very important. Look for a breakout in either direction w/ high volume and it is likely to continue for a bit. If the retrace is on decreased volume and you can stomach it, hold on and use a stop you feel comfortable with.

    I use volume and slow stochastic for entries set to 5,3,3,

    I also use bollinger bands to exit trades, but you may want to tinker with the settings to find standard deviation settings that do not get hit too often

    And of course EMA cross, extremely simple, yet this can catch moves also only it can be a bit late.

    look into Key Reversals and Bullish and Bearish Engulfing candlesticks

    All this said, Volume is the "cats pajamas"
  4. epetrov


    I use oscilators in the upper time frame (daily candles for day trading and weekly candles for swing trading), like MACD Historgram or Stohastics in order to help me identify and confirm the trend, as well as to scan the market.
    Then on the lower timeframe I use mainly trendlines.
  5. Is trading indices an option?

    My advice for you is observe the movement of index futures or index ETF's. Learn to understand why markets move and how you can exploit the big movement up or down by trading in the direction of the trend.

    You say you want to learn swing trading. This is a wise choice. Your entries will be more advantageous, your profits bigger, and the anxiety nearly nil. Many newbie traders fail because they try to outsmart the market and maneuver it up and down at every swing which is not the correct approach obviously. Also beginning in simulation is the right thing to do. It will teach you many lessons just as effectively without actually risking money.

    1) Learn to read price. Why is it moving the way it does and how can you decipher what the market is telling you?

    2) Learn the nature of support and resistance (S&R) levels and how to identify them. What do they mean if you are a buyer or a seller? They are invisible for the newbie, but they stand out like a needle for the astute.

    3) Throw away those technical indicators. MACD, RSI, Stochastics, whatever. Simply dump them. All you need to understand as a beginner is price. Add more indicators later on if you can’t help it.

    4) Use a stoploss at all times. A stoploss is equivalent to the brakes in a car. You wouldn’t drive a car without them, right? Learn how to use it to your advantage.

    5) Learn to be objective (1) on what is happening in the market to make a convinced entry and (2) on how to manage this position. Do not judge by your profit/loss counter. Turn it off!

    You might be familiar some points mentioned above and I'm not asserting that you have to start at zero. But developing the right mindset to read price objectively will take a while. If you have any questions or want to get into more specifics on some topics, just let me know and I will gladly answer them.
  6. epetrov


    Yes, in my scan criterias I ask the volume in the impulse move to be higher than the volume in the corrective move. I think this is correct.
    For example see the ADBE on weekly candles.
    The last week volume is smaller than the volume in the previous week.
  7. epetrov


    Sorry, my fault. ADBE on daily candles , not on weekly.
  8. bathrobe


  9. epetrov


    Hello bathrobe,
    exactly this info is not egough useful for me, becuse it seems too general for me, and I try to do this but it doesn't work for me. What's the point.
  10. bathrobe


    sorry, I accidentally typed in the quote area if you look above I was just saying Support and resistance lines along w/volume work well once you get the hang of it
    #10     Mar 23, 2008