TheRumpledOne
6,411 posts
msg #38552
- Ignore TheRumpledOne |
10/24/2005 10:53:42 AM
I have been reading the eBook, "Trading As A Business", by Charlie F. Wright.
Here are some of my notes:
THE SET-UP
The Set-Up is the condition or set of conditions that are necessary prior to
considering taking a position in the market. It is the indicator or group of
indicators that tell you to get ready to buy or sell. Set-ups don’t get you in the
market, they simply make you aware that a trade is in the making.
THE ENTRY
An entry is the signal by which the strategy purchases the contract in the market.
It is the technique that I use to take a market position once the rules for the setup
have been met.
Entry Rules:
1. Prices should confirm the direction indicated by the Set-Up before a
taking a position
2. The Entry should guarantee that a strategy will capture every price move
for which it is designed
STOPS ARE USED TO PROTECT YOUR CAPITAL
EXITS ARE USED TO RESPOND TO SPECIFIC MARKET CONDITIONS
==============
Something that is really simple but often forgotten is...
Determine trend direction THEN decide when to enter.
Many times traders wait and look for an entry but didn't notice a change in trend occurred while they were waiting.
That's why RSI(2) < 1 and WAIT FOR GREEN give some of you problems... you need to determine price direction BEFORE you buy.
MAY ALL YOUR FILLS BE COMPLETE.
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alf44
2,025 posts
msg #38554
- Ignore alf44 |
10/24/2005 12:58:43 PM
That sounds pretty much like what I said...
...the other day on the "BFreshour RSI(2) < 1" thread !
So...of course I pretty much agree !
Just insert "Thrust Entry" for "Wait for Green" and I think you may have something ! :)
Regards,
alf44
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greendiva
1 posts
msg #38569
- Ignore greendiva |
10/25/2005 12:38:29 PM
I've discovered the hard way just how important the simple rules of trading are. It's easy to forget the basics when trying to select from the results that SF screens produce.
One simple method that I employ is watching the SF default OBV indicator. The direction of the red line OBV EMA(10) seems to indicate trends while watching for the OBV blue line crossovers provide entry and exit points. It has proven to be an excellent confirmation of the other indicators.
However, attempts to write a screen for the OBV x OBV EMA(10) have all failed resulting in a flat line showing OBV crossing the (price) EMA rather than the OBV EMA. Any help would be appreciated.
Another related topic I would enjoy hearing about are methods or reference sources of determining the overall market direction. The usual sources on Yahoo etc. seem to only be as useful as a daily horoscope. I check futures in the morning but that's not too dependable.
Thanks to all for the great contributions.
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roca1018
163 posts
msg #38667
- Ignore roca1018 |
11/2/2005 5:49:02 AM
Look for the ma(4) crossing above the ma(10)on a 5 minute chart that also is
confirmed by momentum(7)
Rich
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Spodey
6 posts
msg #38763
- Ignore Spodey |
11/8/2005 11:44:43 AM
Excellent advice by all. I'm going to be doing my own trading business pretty soon and I wanted to ask you wise ones which trading platform is the best for the expense?
I'm sticking with Stockfetcher because it has paid for itself many times over! But, I'm interested in realtime stock and commodity quotes and the ability to flip through many, many charts with out having to switch from one service to another.
So if any of you have an idea of the best platform to use in a home-based setting I would be very grateful if you could share that info with me.
By the way, I am reading "Fortune's Formula" about the development of the Kelly Criterion, or the "Kelly Bet" and it is highly recommended. A great read it is.
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EWZuber
1,373 posts
msg #38768
- Ignore EWZuber |
11/8/2005 5:07:33 PM
greendiva
I use stochastics and trendlines to enter,exit and to determine market direction.
I never buy a stock that is in a distribution phase on the Monthly Chart. Buying in a distribution phase is the one of the fastest ways to lose money. Any upward movement is typically brief and is slammed hard by sellers at resistance giving you very little time to react.
I like to see Monthly, Weekly, Daily and Hourly Charts all in accumulation then buy at a break of trendline resistance on daily or intraday charts.
If buying on an intraday chart the sell signal must also be within the same time frame. In other words, if it is bought using Hourly Chart indicators then it must be exited if those indicators are violated on the same day of the entry. Same with Daily Chart indicators but more time will need to pass to consult End of Day charts.
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