Hi everyone
I've decided to share my system as a "trading journal" because after I've shared it with you I'm hoping that many of you guys will join me in actually trading it live. I've been trading it on demo for 6 weeks and have turned $600 into $7000 so to say the least it must have some merit (I will post my trading statement for you in my next post).
A couple of days ago I had no intention of doing this – i.e. starting a trading journal. However, I was reading through the “Trading made simple for Day Charts” and I noticed how many times the guys are opening trades at the wrong time (and of course in the wrong direction). Through no fault of their own of course. They are trying to follow some system (of which there are many around) using buy/sell indicators. The problem with these buy sell indicators is that they are often fake-outs – many times the price has been going in a certain direction for some time and suddenly it spurts, moves quickly, and the indicator will tell you to take the trade. However, often this “spurt” in the price comes at the END of a move and you are summarily caught in a bull/bear trap!
So I decided to share my trading method. It is NOT the holy grail. There is no holy grail because price movement is always going to be unpredictable – many factors can cause the price to move and of course when price action is flat or ranging price action can whipsaw around without reason.
So what we have try to do is (a) filter out the bad trades and (b) most importantly get into the right trades at the RIGHT TIME using correct management (as always) to protect our trading balance.
Before I actually get into the system, I'm going to talk about TIME.
I'll get to that in my next post
I've decided to share my system as a "trading journal" because after I've shared it with you I'm hoping that many of you guys will join me in actually trading it live. I've been trading it on demo for 6 weeks and have turned $600 into $7000 so to say the least it must have some merit (I will post my trading statement for you in my next post).
A couple of days ago I had no intention of doing this – i.e. starting a trading journal. However, I was reading through the “Trading made simple for Day Charts” and I noticed how many times the guys are opening trades at the wrong time (and of course in the wrong direction). Through no fault of their own of course. They are trying to follow some system (of which there are many around) using buy/sell indicators. The problem with these buy sell indicators is that they are often fake-outs – many times the price has been going in a certain direction for some time and suddenly it spurts, moves quickly, and the indicator will tell you to take the trade. However, often this “spurt” in the price comes at the END of a move and you are summarily caught in a bull/bear trap!
So I decided to share my trading method. It is NOT the holy grail. There is no holy grail because price movement is always going to be unpredictable – many factors can cause the price to move and of course when price action is flat or ranging price action can whipsaw around without reason.
So what we have try to do is (a) filter out the bad trades and (b) most importantly get into the right trades at the RIGHT TIME using correct management (as always) to protect our trading balance.
Before I actually get into the system, I'm going to talk about TIME.
I'll get to that in my next post