What do I do next??

[YZFR6]

Hello all,

I have been busy reading up on technical analysis and studying chart formations looking for patterns.

I have subscribed to Sharescope end of day, which is very good value and has all of the functions I think I need.

However, now I feel I need to develop a system, and this is where I am stuck.

Can anyone suggest the best way to put my trading ideas together...

I was in the book shop the other day and spotted 'Breaking the Box' or something along those lines, which stated it could help show people how to develop systems.

Any one got any ideas what I should do next??

Thanks

 

[bottomdollar]

Hi YZFR6
When I started, I started the same way.. I read books and went to seminars.. when I felt I understood what was happening, I then set up an trading account and lost!!
I think you should perhaps get hold of some historical data (EOD or intraday depending on what timeframes you wish to trade.. though EOD prob easier to start with) and just go through it.. confirm you can see the patterns you read about, confirm that the indicators work etc. One thing I had problems with is not enough confidence in my system... trading is about probabilities and say you get a buy/sell signal it's not guaranteed to go your way.. I think that comes with experience and knowing that your system works more times than not...
Once you've mastered paper trading, then maybe start to trade in small amounts.. you'll then learn about trading psychology.. they say trading is 80% psychology!!!

Good luck

 

[Uncle]

Welcome to T2W, YZFR6

Now you have Sharescope E O D. You have not said what your intention is whether to trade intraday or E O D. However assuming you are trading E O D and therefore Swing Trading - that is within a few days time frame - I would suggest you decide which indicators best suit your mode of trading. Popular ones are RSI, MACD, Williams%R, ADX. You could purchase John Murphy's "Technical Analysis of the Financial Markets - considered to be the 'bible'. Also you can currently obtain a free five part course by logging on to: http://www.streetauthority.com/. After that if you can be more specific there will be someone on T2W who will respond to your request for info.

NOW BEWARE.........if you are looking for patterns that will automatically make you profits. FORGET IT - the Holy Grail will never be discovered!!!!

Interpreting charts is one of study, trial and error, but through this site you will be able to see how traders arrive at their decisions. Look through the back posts and you will glean a lot of knowledge.

John

 

[oatman]

Choose a contract or share to follow and try a few simple/common indicators that you've read about. eg Moving Averages(MAs) and draw some trendlines. Try 5 and 10 MAs or 21 and 55 for crossover. Look for trendline breaks. Just have a play around and you'll start to recognise patterns etc.

Good luck

and keep asking questions

 

[bonsai]

In sharescope, set up a portfolio to include a few of your
favourite companies in a given sector Retail perhaps. No more
than 12 to start. And only include 15 months data.

There are hundrds of indicators in Sharescope. As a beginner,
I would suggest the 21 day simple moving average.

Set up the same indicator ( only one) for each company then
have a look at each of them in turn. Print out the charts and
study them. Also print out the chart for the Sector Index.

What do you see ?

Trading is all about what you see.

Could you have traded the charts comfortably ?
What is your comfort zone ?
Modify the indicator until you find it.

When you have found it, trade it.

Keep it simple while you learn.

Best of luck.

 

[YZFR6]

Thats great, I didn't think I would get such a good response so quickly.

I plan to Trade EOD but as mentioned I feel swamped by the amount of indicators etc. available on sharescope.

I will take note of all your responses and try to put my ideas into action.

Uncle, I have bought Technical Analysis of the Financial Markets and I recommend it to any other newbie reading this post. Any potential buyers do not be put off by the thickness (or price), Murphy explains everything clearly and does not blind you with jargon.

I appreciate all of your replies and will keep you informed of my progress

Many Thanks

 

[stoploss please]

YZFR6

Also take a look if you have not already at prings CD rom tutorials. He drones on a bit and they can send you too sleep so strong coffee is needed but they do cover alot of ground. Momentun explained volumune 1 is Vgood. There is also some interesting strategies on http://212.38.89.86/spreads/spreads.htm. I am using one of them which seems to work. Also, once you think you have sussed it out, send Naz a mail and arrange a 1 2 1. I took up his offer a few weeks back. It helped clear my mind and put things into perspective.

 

[mutantcar]

Me too!

Hi,

I hope YZFR6 doesn't mind me hijacking his thread.

Like stoploss please, I have also read: http://212.38.89.86/spreads/spreads.htm. I've opened an account with Finspreads, and would like to start trading (at 1p a point) using it as a guide.

As I have a week off work, I would like to get my hands on RT data for the DOW, or other major index, as cheaply as poss (preferably FOC ). Anyone know if it's available anywhere? I could possibly create my own charts if I can get the data.

Thanks,

Mute.

 

[Helenqu]

Sign up with Yahoo on their trial, you will get live Dow free of charge. Or try the Market centre trial, free Dow/S&P.

HTH

 

[mutantcar]

Thanks Helen,

I'm already signed up with Yahoo, and had tried it. Though the timestamp seemed to indicate it was live, they've got a disclaimer at the bottom saying 15min delay on Nasdaq, 20mins otherwise.

Confused I'll try it anyway.

Regards,

Mute.

 

[Newtron Bomb]

mytrack silver service offers dow cash and currencies live as part of the deal. cost is $20 for the silver service

 

[ChartMan]

doesnt sierra offer 1 month trial and free live dow chart?

 

[be-positive]

mutantcar------ check your Private Messages

 

[mutantcar]

Thanks for the replies guys.

Mute.

 

[lovely patrica]

what to do next?

Hello all,

I have been busy reading up on technical analysis and studying chart formations looking for patterns.

I have subscribed to Sharescope end of day, which is very good value and has all of the functions I think I need.

However, now I feel I need to develop a system, and this is where I am stuck.

Can anyone suggest the best way to put my trading ideas together...

I was in the book shop the other day and spotted 'Breaking the Box' or something along those lines, which stated it could help show people how to develop systems.

Any one got any ideas what I should do next??

Thanks

I think that the next step should be practicing on your demo account untill you find yourseld qualified to trade a live account.Wish you best of luck