Stock Trading Strategy?
Tuesday, November 3rd, 2009 at
5:58 am
I am interested in robot-like trading strategies.
Example: Compare the list of stocks in Investors Business Daily Top 100 list each week. Select stocks that were added during the current week. Buy 100 shares. Sell when 1) you take the 10% trailing stop, 2) descend from the top-100 list, or 3) after 2 months, either upward or downward.
How do I re-test this strategy? As on another system without meaning? If it can be improved, what changes do you propose?
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Tagged with: Stock • Strategy • Trading
Filed under: Stock Trading Strategies
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Michaeld is spot on. Robot trading strategies do not work long term. The reason is that the robot business. People act. And people have feelings.
If you have a better feel for how the game of exchange is actually done, you get to read
http://www. nobsdaytrading. com
Try a book, "Short Swing Trading"
While I agree with others that the plan was to speak in any scenario, with the exception of a bull market like 1999-early 2000's work, you can safely change your strategy.
At least you're planning to follow a strategy to do, many people are not one and not on a stick.
What you should do is get an education in technical analysis (TA), which is done, there are many special techniques (Elliot Wave and Gann), etc. But these basic TA.
I would say that the candlestick chart pattern recognition and is managed well.
Then you know, things as basic as the movement of AVG, cup and handle, head and shoulders, etc. Then, for the specialized techniques that sit on one and develop a strategy and use it.
You can have Meta, TradeStation, eSignal, etc., try to test that easily.
I like the following sites: dpa. com, Minyanville. com, bigtrends. , Research Schaffer com. com, etc, etc. Most of time free to use all things for free before paying for anything.
There is no shortage of strategies and techniques, and not one of them is perfect. Go through all and give you some more than others.
But the most important:
Do not forget, books on the regulation of trade by Alexander Elder, Ari Kiev, etc. Read
If you have a strategy and discipline, and stick to it, it is.
Also, be flexible, which operates in a kind of market does not work in another.
First, it can be improved by forgetting about them. There is no trick or gimmick to make money in the stock market. If you have something similar and it works, then it's time and a lot of luck. The problem is knowing when to quit and if your strategy does not work anymore. A few bad quarters was the pagan past successes, like you stop him with a rather generous 10% and you will probably only Vista 1 to 5 percent increase in two months. If you do a lot of 3 percent, half of many winners and losers then 6% of zero, minus commissions paid.
If you try again to find out when adding the previous 500-1500 sides and then locate the share price for that day. Find each accounted for 2 months later. , Assuming $ 1000 for each company. Whether it is worth less than 90% of what you will pay the loss of 10% and not more, since you set the limit stop-up would. Factor in all the losses up to 10%. Then add all the useful materials after two months. You can view the list, that stocks, which fell to examine and adjust the total correct, but if only to check and see what is on the list 2 months later, so it is not necessary. 500-1500 of these companies was started with $ 1,000 in each company, so 500,000 to 1,500,000. If you have more than 2% per cent return on your money, then it can be a winning strategy.
You know what I mean?
Anyway, I highly doubt it will be an effective strategy must take short-term capital gains and trading fees, a factor can be very expensive depending on how much money you have to do.