My Simple Trading System

There are two types of trading in the share market. One is Delivery based trading in which the customer based on the Company fundamentals, trade information etc will purchase. Then customer takes delivery of the shares and holds it till he finds a favorable rate and then sells it. Second type is the Day Trading in which case the customer buys and sells on the same day without taking delivery of the shares. On an average, there is 2-3% volatility in the market every day.
 
Hi Danny,
Thanks for the message.
I think if you are at the begining of your trading journey, this forum is a very good place to start, but there are better threads than this for you to get on.
I suggest taking a good look around the beginers areas, then see my post No 36 on previous page and follow the link there.

As for that link under your msg, just forget about it, drop it. Total waste of time mate.

All the best
 
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Hi,

Day traders who employ scalping techniques can buy a stock and sell it in seconds or minutes. Scalping is not only limited to stocks though. All that a scalper needs is a liquid market and a lightning-fast execution. This means that currencies (or forex) and futures (like the eminis) are fair game.
 
Robert2009 said:
Hi,

Day traders who employ scalping techniques can buy a stock and sell it in seconds or minutes. Scalping is not only limited to stocks though. All that a scalper needs is a liquid market and a lightning-fast execution. This means that currencies (or forex) and futures (like the eminis) are fair game.
Click to expand...

Utter poo mate.
 
I've not written here for quite a while so a little update.
As Rathcoole Exile and others predicted early on in this thread, PRICE and PRICE ACTION has become paramount now in my trading.
I use some support & resistance lines and the occasional fib ratio but basically its price all the way and no other indicators at all. I wouldn't even know what to do with them nowadays.

I find Patience to wait for set ups is really critical and a cool calm mental focus helps a lot with this. A kind of indifference to the need to trade until the right time. Probably this is kind of what they mean when they say trading is 95% psychological.

Stops - I always have a stop. I now focus much more on what can be lost than on what can be gained. I don't mind a break even if it avoids a loss. Although another thing that makes a difference is to play with amounts of money that really matter in both losing and gaining. It makes me wait for your edge to arrive before trading.
Timeframes - I usually trade 4 hrs or dailys. Hourly on occasions, but normally only as a trigger to a higher timeframe set up. I'd like to do weekly, but long term trades make me feel stressed.

So I'm not where I'd like to be yet, I'd like to be able to trade real long term trends - 3 months +.
But it will be a long time before I get there. My mind plays too many tricks on me.
Meanwhile there are plenty of opportunities and plenty of money to be made in shorter term trades.

All the best,
 
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Hoogi tends to dismiss conventional guidance, and just climbs aboard whatever's rising strongly enough to look like it might continue doing so awhile - and jumps off when it stalls. Does that count as a system? Details and examples at http://www.hoogi.yolasite.com
 
Hi Malaguti,

I could copy and paste examples, together with explanatory paragraphs from it - but folk can see them all rather than ones I might choose to highlight. Hence the link. It's not a site that sells anything.

But if you like I'll copy and paste this from the Portfolio page, which consists mostly of stocks listed there in March this year, plus others added since:


Advanced Computer Software (ASW). Rose 31.9% in 2011, up 32% in first two-thirds of 2012. Healthcare organization software systems. Website www.advcomputersoftware.com

API Group (API). Having fallen to a low point in November 2008, it climbed 27% in 2009, 88% in 2010, 164.5% in 2011, up 48.8% in first two thirds of 2012. Specialised foil packagings. Website Welcome to API

TF & JH Braime (BMT). Rose 167% in 2011, up 23.5% in first half of 2012. Metal pressings and components. If it drops below 485p I'll ditch it in favour of something better. Website T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Delcam (DLC). Rose 62.8% in 2010, up 68.5% in 2011, up 57.5% in first 3/4 of 2012. Software for CADCAM systems. Website CAD CAM Software Solutions - Delcam

Dialight (DIA). Rose 93.3% in 2009, 134.7% in 2010, 36% in 2011, up 72%% in first 3/4 of 2012. Design and production of LED lighting. Website Dialight plc - LED Technology, LED Industrial Lighting, LED Hazardous Location Lighting, LED Obstruction Lighting, LED High Bay.

Driver Group (DRV). Share price bottomed in Feb 2011 after a 4 year decline, but rose 100% between then and end of year. Up 120% in first 2/3 of 2012. Provider of dispute resolution services to construction industry. Website Welcome | Driver Global Construction Consultancy

GB Group (GBG). Rose 38.7% in 2011, up 92.6% in first 2/3 of 2012. Identity systems. GB Group. Age & Identity Verification to prevent ID Fraud; People Tracing, Address, Data Management, Data Cleaning & Database Marketing Applications.

Idox (IDOX). Rose 73.2% in 2011, up 55.7% in first 2/3 of 2012. Software, mainly for UK public services. Website Idox plc - Investors home

Ienergizer Ltd (IBPO). Rose 54% in 2011, up 32.7% in first 2/3 of 2012. US-owned operator of Indian call centres. Needs tp maintain rise into final quarter for me to remain interested, otherwise I'll switch to something moving better. Website www.ienergiser.com

Iomart (IOM). Rose 71.4% in 2009, 88.5% in 2010, 37% in 2011, and 28.6% in first two thirds of 2012. Cloud computing services. For me, the charts threw up a possible sell signal on 25 Oct 2012. I stayed onboard with a reduced stake but will exit for now if it drops beneath 196p. Website The iomart Group - web hosting | server hosting | managed hosting | cloud hosting | saas hosting

Judges Scientific (JDG). Rose79.7% in 2009, 207.5% in 2010, 10.9% in 2011, and 112% so far in 2012. Up more than 14-fold in total from its Jan 2009 low. Design and make scientific instruments. Website Judges Scientific

Lo-Q (LOQ). Rose 94% in 2011, up 74.4% in first 2/3 of 2012. Queue-avoidance technology. Instead of queueing ages for each 3 minute ride at a theme park, an electronic wristband alerts you when your turn is ready, freeing you to do other things in the meantime. Website Lo-Q Home

Optare (OPE). A totally speculative gamble on a stock that could drift deeper and deeper into Pennyshareland leaving shareholders poorer - or could recover. Down 83% in 2011. Up 8% in the first half of 2012. A Yorkshire based maker of buses, recently saved from bankruptcy by Ashok Leyland, the vehicle building flagship of the Hinduja Brothers empire. Will they turn it around? Or shut it down? At current price (0.3p), one can buy about 28,500 shares for £100. If it does survive, that £100 would be about £1000 if the share price gets back to 3p where it was last summer. I have staked very little on it, buying a few at 0.3p and a few at 0.55p. Company website is Optare

Oxford Instruments (OXIG). Rose 35% in 2011, up 37.8% in first 2/3 of 2012. Specialised laboratory/industry tools that fabricate/manipulate at atomic/molecular level. Website Welcome - Oxford Instruments

Paddy Power (PAP). Bookmaker. Rose 47% in 2011, up 24% in the first 2/3 of 2012. It's been in an uptrend for 3 years during which time it has almost quadrupled - and has risen for 10 of the last 11 years. Which some would say makes it an ideal holding in any portfolio. (The drop in 2008 wiped out 18 months gain). If I were a seriously longterm investor I would have bought it 9 years ago when its behaviour was already evident to me and I recall persuading someone else to buy into it. Hey ho. Website Paddy Power PLC

Quindell (QPP) is another that only caught my eye in mid-October 2012. Price chart formed a 'double bottom' in June this year, from where it's leapt 165% in 15 weeks. Though it previously fell 37.5% in 12 weeks to bounce off that springboard. Towards the end of 2011 it leapt more than fourfold after a previous 48% 16-week dive. Clearly not one for the safety conscious investor, but an exciting one for active traders who watch closely enough to jump ship when necessary! Each previous fall has been identifiable in its early stages. Their Trading Statement 2 days ago is very bullish. Risky but potentially explosive? I've taken a small stake via a spreadbet. Website Quindell Portfolio Plc - Software, Consulting & Outsourcing

Restore (RST). Rose 92.3% in 2011, up 27% in first 2/3 of 2012. Mundane office support services. EDIT 4 July - If it drops below 82p I'll probably lose interest in this one, but will stick with it if it passes 93p and stays above there. Website Restore Plc: Home

Sepura (SEPU). Up over 80% in the first 3/4 of 2012. Maker of robust communication radios.Market leader in over 20 countries. Website Sepura

Solid State Supplies (SSP). Up more than 14-fold since hitting a low of 16.5p in March 2009. Rose 66% in 2009, 150% in 2010, 27.7% iin 2011, and 88% in the first 3/4 of 2012. But with 30% drops along the way. Distributor of rugged electronic components for harsh environments. Website Solid State Supplies - Company

Telecity Group (TCY). Share price rose 37.5% in 2011, up 34.4% in first 2/3 of 2012. Europe's biggest owner/operator of data storage centres. website Data Centre | Data Centers | TelecityGroup

F.W.Thorpe (TFW). Rose 7.6% in 2011, up 32.7% in first half of 2012. Lighting specialist. Gone sideways mid-June to mid-October. Needs to get above 1070p during the final quarter or I'll replace it. And definitely will if it drops below 1000p. website FW Thorpe PLC - Overview Page

888 Holdings (888). Fell 21.5% in 2011, up 96.5% in first 2/3 of 2012. A casino operator. Lost much of its first quarter gain in May/June but recovered since then. Website 888 Holdings :: Home Page





MY LOGIC: Stuffing a portfolio with stocks that already demonstrate a strong upward trajectory with a story that supports it, in expectation that several will maintain momentum for a few more weeks or months at least - long enough to bank some worthwhile gains. Obviously some of these surging stocks will lose impetus and fall away. But if carefully monitored, I aim to exit those gracefully as soon as they start looking exhausted. Occasionally one or two will collapse too quickly for for me to avoid a hit - but my stakes are set with this risk in mind, and with the expectation that gains on the good ones will comfortably outweigh a few losses. I would not expect this approach to work for me unless the stocks chosen are rising at more than about 30%pa over consecutive quarters. I don't go for stocks that have merely spiked upwards without an established trend and/or a convincing story. I expect to replace the tired ones with fresh horses every month or so. My approach is merely one that suits me - it might not work for anyone else. A global fall across the board might occasionally prompt a total exit.
 
PurplePerson said:
Hi Malaguti,

I could copy and paste examples, together with explanatory paragraphs from it - but folk can see them all rather than ones I might choose to highlight. Hence the link. It's not a site that sells anything.

But if you like I'll copy and paste this from the Portfolio page, which consists mostly of stocks listed there in March this year, plus others added since:


Advanced Computer Software (ASW). Rose 31.9% in 2011, up 32% in first two-thirds of 2012. Healthcare organization software systems. Website www.advcomputersoftware.com

API Group (API). Having fallen to a low point in November 2008, it climbed 27% in 2009, 88% in 2010, 164.5% in 2011, up 48.8% in first two thirds of 2012. Specialised foil packagings. Website Welcome to API

TF & JH Braime (BMT). Rose 167% in 2011, up 23.5% in first half of 2012. Metal pressings and components. If it drops below 485p I'll ditch it in favour of something better. Website T.F. & J.H. BRAIME (HOLDINGS) P.L.C.

Delcam (DLC). Rose 62.8% in 2010, up 68.5% in 2011, up 57.5% in first 3/4 of 2012. Software for CADCAM systems. Website CAD CAM Software Solutions - Delcam

Dialight (DIA). Rose 93.3% in 2009, 134.7% in 2010, 36% in 2011, up 72%% in first 3/4 of 2012. Design and production of LED lighting. Website Dialight plc - LED Technology, LED Industrial Lighting, LED Hazardous Location Lighting, LED Obstruction Lighting, LED High Bay.

Driver Group (DRV). Share price bottomed in Feb 2011 after a 4 year decline, but rose 100% between then and end of year. Up 120% in first 2/3 of 2012. Provider of dispute resolution services to construction industry. Website Welcome | Driver Global Construction Consultancy

GB Group (GBG). Rose 38.7% in 2011, up 92.6% in first 2/3 of 2012. Identity systems. GB Group. Age & Identity Verification to prevent ID Fraud; People Tracing, Address, Data Management, Data Cleaning & Database Marketing Applications.

Idox (IDOX). Rose 73.2% in 2011, up 55.7% in first 2/3 of 2012. Software, mainly for UK public services. Website Idox plc - Investors home

Ienergizer Ltd (IBPO). Rose 54% in 2011, up 32.7% in first 2/3 of 2012. US-owned operator of Indian call centres. Needs tp maintain rise into final quarter for me to remain interested, otherwise I'll switch to something moving better. Website www.ienergiser.com

Iomart (IOM). Rose 71.4% in 2009, 88.5% in 2010, 37% in 2011, and 28.6% in first two thirds of 2012. Cloud computing services. For me, the charts threw up a possible sell signal on 25 Oct 2012. I stayed onboard with a reduced stake but will exit for now if it drops beneath 196p. Website The iomart Group - web hosting | server hosting | managed hosting | cloud hosting | saas hosting

Judges Scientific (JDG). Rose79.7% in 2009, 207.5% in 2010, 10.9% in 2011, and 112% so far in 2012. Up more than 14-fold in total from its Jan 2009 low. Design and make scientific instruments. Website Judges Scientific

Lo-Q (LOQ). Rose 94% in 2011, up 74.4% in first 2/3 of 2012. Queue-avoidance technology. Instead of queueing ages for each 3 minute ride at a theme park, an electronic wristband alerts you when your turn is ready, freeing you to do other things in the meantime. Website Lo-Q Home

Optare (OPE). A totally speculative gamble on a stock that could drift deeper and deeper into Pennyshareland leaving shareholders poorer - or could recover. Down 83% in 2011. Up 8% in the first half of 2012. A Yorkshire based maker of buses, recently saved from bankruptcy by Ashok Leyland, the vehicle building flagship of the Hinduja Brothers empire. Will they turn it around? Or shut it down? At current price (0.3p), one can buy about 28,500 shares for £100. If it does survive, that £100 would be about £1000 if the share price gets back to 3p where it was last summer. I have staked very little on it, buying a few at 0.3p and a few at 0.55p. Company website is Optare

Oxford Instruments (OXIG). Rose 35% in 2011, up 37.8% in first 2/3 of 2012. Specialised laboratory/industry tools that fabricate/manipulate at atomic/molecular level. Website Welcome - Oxford Instruments

Paddy Power (PAP). Bookmaker. Rose 47% in 2011, up 24% in the first 2/3 of 2012. It's been in an uptrend for 3 years during which time it has almost quadrupled - and has risen for 10 of the last 11 years. Which some would say makes it an ideal holding in any portfolio. (The drop in 2008 wiped out 18 months gain). If I were a seriously longterm investor I would have bought it 9 years ago when its behaviour was already evident to me and I recall persuading someone else to buy into it. Hey ho. Website Paddy Power PLC

Quindell (QPP) is another that only caught my eye in mid-October 2012. Price chart formed a 'double bottom' in June this year, from where it's leapt 165% in 15 weeks. Though it previously fell 37.5% in 12 weeks to bounce off that springboard. Towards the end of 2011 it leapt more than fourfold after a previous 48% 16-week dive. Clearly not one for the safety conscious investor, but an exciting one for active traders who watch closely enough to jump ship when necessary! Each previous fall has been identifiable in its early stages. Their Trading Statement 2 days ago is very bullish. Risky but potentially explosive? I've taken a small stake via a spreadbet. Website Quindell Portfolio Plc - Software, Consulting & Outsourcing

Restore (RST). Rose 92.3% in 2011, up 27% in first 2/3 of 2012. Mundane office support services. EDIT 4 July - If it drops below 82p I'll probably lose interest in this one, but will stick with it if it passes 93p and stays above there. Website Restore Plc: Home

Sepura (SEPU). Up over 80% in the first 3/4 of 2012. Maker of robust communication radios.Market leader in over 20 countries. Website Sepura

Solid State Supplies (SSP). Up more than 14-fold since hitting a low of 16.5p in March 2009. Rose 66% in 2009, 150% in 2010, 27.7% iin 2011, and 88% in the first 3/4 of 2012. But with 30% drops along the way. Distributor of rugged electronic components for harsh environments. Website Solid State Supplies - Company

Telecity Group (TCY). Share price rose 37.5% in 2011, up 34.4% in first 2/3 of 2012. Europe's biggest owner/operator of data storage centres. website Data Centre | Data Centers | TelecityGroup

F.W.Thorpe (TFW). Rose 7.6% in 2011, up 32.7% in first half of 2012. Lighting specialist. Gone sideways mid-June to mid-October. Needs to get above 1070p during the final quarter or I'll replace it. And definitely will if it drops below 1000p. website FW Thorpe PLC - Overview Page

888 Holdings (888). Fell 21.5% in 2011, up 96.5% in first 2/3 of 2012. A casino operator. Lost much of its first quarter gain in May/June but recovered since then. Website 888 Holdings :: Home Page





MY LOGIC: Stuffing a portfolio with stocks that already demonstrate a strong upward trajectory with a story that supports it, in expectation that several will maintain momentum for a few more weeks or months at least - long enough to bank some worthwhile gains. Obviously some of these surging stocks will lose impetus and fall away. But if carefully monitored, I aim to exit those gracefully as soon as they start looking exhausted. Occasionally one or two will collapse too quickly for for me to avoid a hit - but my stakes are set with this risk in mind, and with the expectation that gains on the good ones will comfortably outweigh a few losses. I would not expect this approach to work for me unless the stocks chosen are rising at more than about 30%pa over consecutive quarters. I don't go for stocks that have merely spiked upwards without an established trend and/or a convincing story. I expect to replace the tired ones with fresh horses every month or so. My approach is merely one that suits me - it might not work for anyone else. A global fall across the board might occasionally prompt a total exit.
Click to expand...

I'm clearly missing something..all you are doing is giving me whats on your (sorry, its not your site is it..) whats on the stupid site. It doesn't give an example of where you (sorry he) got in and why. Example solid state supplies. You got in why? All you're doing is regaling what has happened. Not WHAT the strategy is. Are expecting people to blindly follow your picks? Surely you wouldn't be advocating something as dangerous as that
 
"..All you're doing is regaling what has happened. Not WHAT the strategy is. Are expecting people to blindly follow your picks? Surely you wouldn't be advocating something as dangerous as that .."

Certainly not. The strategy is exactly what it says on the can - climbing aboard risers that appear to show ongoing momentum, and jumping off when they stall. Entries and exits are casually mentioned along the way, in notes on the 'Latest' page and (more frequently) on the associated Facebook page. Exits are typically pressaged by a comment about what price level would trigger them, days or weeks before. If you consider it stupid, or don't think it's an approach that would work for you, fine - just ignore it - like it clearly says ;-)

The site isn't selling anything, nor reccomending that anyone buy into anything. It merely lays out what one active trader is doing. Viewers are free to chortle at the approach, scoff at whatever decisions go wrong, or to wonder if it might possibly work for them - which in most cases it probably won't, but in one or two it might. Certainly no reason for anyone to get angry!
 
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Well that was a while back !!!!

glyder said:
Unf I only fairly recently came across this site..
I have spent a good while sniffing around the edges of trading, reading a multitude of books, learning technical analysis (even working with one or two good technical analysts) and placing trades for all sorts of reasons good and bad.. But, as I have learnt, TA is TA and trading is trading.

So,now I have hit upon a simple system that seems to be working well so far - I've backtested and put it to real life action (for around 2 weeks), and its working!

Its the first time I've had consistent, repeatable, profits. I've previously had plenty of periods of small losses, break evens and small gains with occasional good gains.

As I am a very much part time trader I do not have fancy tools of the trade so my charts are limited to my spreadbetters charting system and tools.

I use a money managment system that tries for 3:1 minimum profits and results so far have been that 6 out of 10 trades are positive.

Anyway here is the system, you are welcome to use it, comment on it, change it, - it no doubt needs working on, and can be improved, or ignore it.
Maybe even I've just been on a lucky run- its still early days.
If its any good I acknowledge its down to soaking up the strategies, skills and experience of traders from many sources including this site, many trading books (and even TU - although their teachings play little part in this system).

One aspect ofthe system is that it uses bollinger bands for outer parameters of price action, I'd like to have also tested the system using fixed standard deviations but don't have that tool at my disposal at the mo.
Click to expand...

Do you know what ? I think that was a pretty good first system. Moved on a bit now but many similar aspects still. I mark myself B+ for a good first effort :)
 
glyder said:
Do you know what ? I think that was a pretty good first system. Moved on a bit now but many similar aspects still. I mark myself B+ for a good first effort :)
Click to expand...
Hi glyder,
Needless to say, after reading your last post I went back to your opening post and glanced at the charts. I can't help but wonder, was Rathcoole_Exile right or wrong when he said: "good effort, and i'm not knocking you when i say that most of us have been through this phase, but i'd wager that this time next year, you've dropped most if not all of those indicators"?

For the record, I use indicators myself - so I'm not in the camp of 'indicators are for beginners and/or people who can't read price action, etc.'
Tim.
 
timsk said:
Hi glyder,
Needless to say, after reading your last post I went back to your opening post and glanced at the charts. I can't help but wonder, was Rathcoole_Exile right or wrong when he said: "good effort, and i'm not knocking you when i say that most of us have been through this phase, but i'd wager that this time next year, you've dropped most if not all of those indicators"?

For the record, I use indicators myself - so I'm not in the camp of 'indicators are for beginners and/or people who can't read price action, etc.'
Tim.
Click to expand...
Good question - He was right at first. In the time since I first off dropped indicators and learnt to trade charts 'naked'. Which has been very useful for getting a grip of price action. I didnt want to add back indicators, it seemed a backwards step, (and not cool !) but I have since added a range of indicators back. I find confirmatory signals added to candle patterns from these help me pick the best trades.
Putting it simply not all candle formations are equal. Indicators help me find thoes that have the best chance at some momentum.

Basically its all about support resistance, price action and momentum. Not a great deal of change from that original post but finessign with different indicators and a few years of experience !
 
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