Hello everybody! This sound maybe a bit stupid but how do you define your strategies? This is my first month, that I am trading in full time. I use a trading journal with extra space for what kind of strategy I use for the trades. But I don’t know how to define the strategies. One example: What is this? First, I was looking for the big picture, then going to the lower timeframe. Then I found this opportunity. But it is not a pattern, or any kind of divergence. I saw a resistance, a triangle pattern in the momentum, bearish fundamentals and was not risking a lot of money because it was not a clear signal, but enough things to try it out. Is this even a strategy? Its hard for me also to understand at which point I can call a strategy, a real strategy. This would make me analyze my trades a lot more efficient. I use also On Volume Balance Divergence and RSI divergence as “strategy´s”. But I don’t get a lot of opportunities with this divergence, like with resistance or supports. Sometimes I just see opportunities and want to try them out... Thank you for your help and ideas!
Why are you trading full time when you have no defined strategy and no track record of making money? There is plenty of free info on the internet regarding strategies/approaches to trading. My suggestion is find something that "makes sense" and then do your own research to see if it is a viable trading strategy.
I was reading books about technical analysis and trading psychology. I had a good feeling and just wanted to start. The plan was to make 100-200 Trades and to see how it works and what I can change and make it better. I use two strategys. One with RSI and one with On Balance Volume. But the setup for these is not often the case so I also trade when I get a signal with indicators&oszilators and resistance and support. I dont know how to retest them so i trade them with very low risk. Approaches is a good point, maybe my way of thinking of this in that way isnt good. I appreciate your help! Thanks!
A strategy, to me, in a nutshell, is usually composed of an entry and an exit and all the procedures of what to do in all the scenarios that you can find for these two trading activities.
Warren Buffet once said that your strategy needs to be simple enough to explain to someone who has very little understanding of the investment world. Yeah Buddy
Welcome to day trading. I daytrade various futures like Asian/European/US index, oil, copper, gold, NG, bonds .... futures. I avoid day trading micro btc, ether futures due to their relatively low volume, and horrific bid-offer spread. I used to have tends of indicators on my chart. Now I have zero. you can see my sample chart in my Journal. different people coined their own strategy differently. I don't bother about the convergence divergence thing. I just focus on CONTINUATION and REVERSAL strategy.
A set of defined rules for entry, exit, risk and money management that you adhere to. If you don't have this then you don't have a strategy and you shouldn't be trading live. You're working on luck.