Welcome Trader………..
First up….Can we ask you something?
The strategy that you use at the moment……..is it effective………profitable…..easy to follow?
If you are like most other traders then you will answer no to at least one of those above.
It really does not matter what you trade, how big your account is, or even when you trade, if you struggle to make money then you are not where you need to be. Trading can be a simple process, but arriving at that place takes time, patience, money, and a good method.
Systems Based Trading
Here at Trading About we have been involved in the markets for 13 or so years and know the feeling of struggle all to well.
We discovered that the missing ingredient to our trading was a simple set of rules that we could understand, believe in , follow, and not second guess. We have bought trading systems with varying degrees of success and believe that there are many benefits to this type of trading.
The state of technology has produced cutting edge systems that range from completely automated to full hands on trading.
The markets that used to be the domain of the big boys are becoming available,and in fact many products are now created expressly for the retail market. Many systems have solid support systems in place where you become a member and have direct contact with the trading room. These are great places to learn from as you get to talk with like minded people who invariably make mistakes and can share it with you, helping you avoid the same mistakes. Likewise, when you make an error of judgement, they can benefit from your knowledge.
Monitoring the markets in these modern times is both easier than ever as charting platforms and websites supply this info, and then at the same time more confusing that ever due to all the opinions floating around the net. When it comes down to your own money, it makes sense to form your own opinion and allow yourself time to prove whether your opinion is valid or you need to adjust it. This process is how you grow as a trader.
Purchasing a trading system can speed this process up as long as you keep an open mind and can see the benefits as well as the downsides.
Candlestick Based Trading
The history of candlesticks is well documented so we won’t go to deep into that…..however we will say this. For over 400 years they have been used and if they didn’t work or were not effective do you think they would still be used?
They have the runs on the board through historical usage so don’t step over them to quickly if you have doubts on there efficacy
. There are books written by Steve Nison on candlestick charting and he is considered a leading proponent of the candlestick technique.
. There are books written by Steve Nison on candlestick charting and he is considered a leading proponent of the candlestick technique.
Candlesticks are predominantly a pattern based trading style that can give surprisingly accurate signals based on nothing more that a bar or bars. The key take-away with that comment is that the signals are best used in areas of significance such as key support or resistance levels. They can be supported by moving averages as well as the usual momentum and oscillator indicators.
Well worth investigating.
Bare Charts or Price Action
For those of you who have had enough with the testing and trials of using all sorts of indicators, this style of trading comes very highly rated from us here at Trading About. This is the style that we have ended up with and it fits us well.
If you need a system or method to approach the markets with a consistent edge then consider this style.
Used in conjunction with either candlesticks or standard OHLC bars, and waiting for key zones or areas in the chart, you can gain a level of clarity that is hard to achieve with having multiple indicators distracting the actual price movement.
This approach allows you to glance at a chart once a week /day/intra-day timeframe, and once the bar has completely formed the setup is either there or it is not. It is great for traders who are time short but have the desire to trade effectively.
Trading systems can give you stability with your rules. If you buy a system, you
can back-
This allows you to be very selective without the stress of figuring out your own rules in real time, often with the market moving against you.
EA’s or Robots
With the speed of technology affecting life in almost every way, it is not surprising that the field of finance or in particular the field of financial trading has been at the forefront of change for the last 15 years or so. The “robots” that are available today are just a bunch of code that monitors your selected market for signals and places the trade for you when a trade set-up presents itself.
What you can do with these programs is incredible. You can call up any of your favorite indicators and use these to define entries and exits. All the while you can be off doing whatever it is you wish.
You have the ability to place stops, adjust them with defined rules and take profits, all within the robot.
If you are interested in this style, there is a platform called Meta-Trader that is supplied free of charge and you can also get a demo account setup with live data feeding in to keep your robot happy. This way, you have no risk, and live data to give quality feed-back on the effectiveness of the robot.
One thing to be aware of and that is this platform is mostly used for the currency markets at retail level.
Gann and Fibonacci
This pair have a solid following within the trading community.
Most often by the more mathematical types who use these methods to calculate price and time relationships. They have been around for a long time, not as long as candlesticks (at least not in a trading sense) but long enough to have proven themselves.
Fibonacci is actually a mathematical numbers sequence that is found throughout nature. It has been incorporated into trading methods very effectively to the level that the largest players in any market will have these numbers ( in reality they are ratios) on their charts to help make the trading decisions.
The key level in fibonacci is the 61.8 level. This level if associated with other evidence like support or resistance levels can be a formidable combination.
Add candlestick price action signals into the mix and you have a rock solid method to approach any market.
There are many facets to trading and the method or system is just that; a method or system.
To keep the whole package together you need to feed the mind to get a better understanding of yourself.
Learn to listen to your mind, get it on side, and you can reach that goal you want to reach.
© TradingAbout.com all rights reserved