Trading strategy

Discussion in 'Professional Trading' started by simonee, Oct 30, 2005.

  1. simonee


    I have a trading strategy and I want your opinions!

    I have watched the Swedish markets for 3 years now, and watched 4 stocks very often.

    So this is my strategy plan.

    I trade those stocks I am familiar with , for example ericsson when I think its cheap (not intraday cheap ,when it had going down for several days (about 10-15% )without bad news, maybe its called “overbought” I am not shore, but has happened sever times before) I have watched those stocks and they kind of do that from time to time, so my strategy is to buy first for a little amount say 7k ( the stock now have stopped to go down and its only moving sideways , and the when its start to go up I will by) and a I will risk 3-5percent (because the time frame is most likely to be about 2 weeks, so I must give the stock a little space to move against my direction . when the trade go my way I will buy for 7k (now I have bought for 14k pound), I will put a moving stop loss with 3-4 percent now, and if I see that stock still going strong I will by for another15 k and put a moving stop loss of 2 percent.
    This is in a bull market, and same strategy in bear market but you go short…well you understand..

    First of all sorry for my bad English!

    PS. Please if you have an opinion of how bad my strategy is, please tell me WHY its bad so I can work on it!

  2. Okay Simon,

    First it is too bad that you insist on trading. In my opinion you do not have enough experience to do this, and you may lose your money. I would suggest that you study the markets and learn more by observation.

    I am fifty four years old, and I used to play tennis very well. If for instance I told you I was going to play a match with Stefan Edberg or Mats Wilander, would you bet on me to win. I don't think so. Why? Because both of them are very good professional tennis players, and I am an old man who has never played a professional in my life. Even if I told you that I have studied every match that they have played and had a good plan to beat them, who do you think would win? The truth is that the odds that I would win are not good. I don't have the skills, and I am too old to play against them with success. Even if I am lucky in the first set, eventually I will get beaten as I become tired and make mistakes.

    The stock market is very similar. At this point, you do not have the skills or the experience to win. Even if you are lucky once or twice, the odds are that eventually you will lose your money.

    I hope you will take some time and develop your skills and experience before you risk your money. There are quite a few good professionals playing that game too, and they will not think twice about taking your money if you are wrong.

    Good luck,
  3. simonee


    Thanks steve!

    This is the scratch of my strategy plan that I have maid, I have to start somewhere.
    These dos not mean I will trade this plan (but I now that my bad English is confused it up), I am learning and I now that I am an easy target for the professionals, I read a lot of books but I have to listen to others to.

  4. Simon,

    Try your strategy out with very small share lots at first, so you will preserve your capital in the event of losses. Log all your trades and study your losing trades to try to figure out what went wrong. If your strategy does not work, it will be time to conduct new studies and try out a new strategy. There is no right or wrong way to trade. Both Warren Buffet and George Soros have become billionaires using drastically different strategies. Everyone must start somewhere. Keep reading the boards and surfing the web to improve your knowledge and skills. Good Luck!
  5. Poha84


    Try it! I don't think you can lose any money in Ericsson B now.. Try your strategy in a small scale. The Swedish trends seem to be very reliable.
  6. If you are a swing trader, how does another trader go about taking your money. You buy at a price, and the next day the market moves up or down, you take profit or you exit the position. What does another trader have to do with your trade? Absolutely nothing.
  7. Stalker


    I thought I was the only swede on this forum. :)
    Compare the times your strategy would have worked with the times it wouldn´t have worked, see if you can spot a difference. Try it and good luck!
  8. Look Reid, what the hell difference does it make if your money is gone.

    If you make a trade, you are buying or selling shares. The other side of that trade is an "entity". That entity is either a person, or a legal entity (like a corporation). Thats it. Thats how another person takes your money (if you guess wrong) or gives up their money to you (if you guess right). Either way the idea that no one is taking (or giving up) money is just plain ignorant.

  9. That's only in your imagination. Nobody is taking your money in a swing trade. You put in the trade one day, the next day you'll know if you bet right or you bet wrong. You can enter the trade when you like and exit when you like, and nobody gives two cents what you do. Whether you sell at a loss or you sell at a profit, somebody will buy the shares, but they did'nt take it from you.
    OK. The next time you make a trade I'm gonna take your money. How about that.
  10. When you buy 100 shares of General Motors, the shares are not sold to you by General Motors, they are sold by a person or a legal entity (corporation). I can assure you that they sold the shares because they wanted to. They had a reason. The reason is not important, only the result when YOU sell the shares. If they sold to you and you make a profit, you win, and they lose. They lose the opportunity to make the unrealized profit you have as the stock goes up, and the realized profit that you have when you sell. These transactions happen because people do care about what happens. Its called competition.

    The time frame in which these events take place makes no difference. When you figure this out, we can have a conversation.

    You want to take my money? Give it your best shot. So far this year, you (and the rest of the market participants) havent done very well at that. I am up $40%+ and unless I have a very bad November and December, I would guess I am going to end up profitable for the year.

    #10     Oct 30, 2005