Strategy

Trading strategy for making money on the NYSE market

How to recover as a trader during a losing streak

Most of the material is already for traders who have been trading for more than a year and have started trading in a plus, but beginners will also have useful moments. This course is designed for people who are broken and lose heart., no desire to trade anymore and do not believe in themselves. For my almost 3 years of trading on the NYSE were 3 times black bars and I was recovering from them . The most important thing in trading is your emotional state.. You must be in harmony with yourself and have confidence in your actions.. Often people start working on mistakes during a losing streak., but they are not psychologically ready to earn.

Not a jeweler

After a couple of days I still understood, that short feet are not mine. Before, I didn't really bother about my feet, though 5 cents or 14 Cents, and when he began to try to go everywhere at the ideal price and with minimal risk they began to distribute them too often. Because of this, good deals were closed. The most important thing – this is a good stop, even if the price has slipped and there is no need to try to reduce the risk every time where it is not possible. Back to normal trading with stops 5-15 Cents, but I increase the minimum potential in stocks to 60-70 Cents. We need to improve the selection of shares, look more for stocks with good potential, close to levels and a clear trend. My main emphasis is on technical analysis., but now I will read the news more attentively and study the companies.

The beginning of tough discipline

Finally, I recovered, you can return to trading. Now I want to tighten my discipline and start trading only according to my trading strategy. Here are some small rules : In the first hour I do not trade and at lunchtime Only according to the trading plan Risk profit 1 to 5 Stop 5-10 cents Potential not less 50 cents Only familiar patterns Only trends Smooth stocks Adequate

Hone discipline

During all this trading time, I have made thousands of mistakes., know my strengths and weaknesses. I lack attentiveness, discipline so as not to repeat them. If I can cope with the fact that would not repeat the mistakes, then my results will improve greatly. In most trainings, for breaking the rules, you set yourself some kind of meaningful punishment and I also need to come up with something like that. Yes, the loss of money is already a punishment for making a wrong transaction, but I take it for granted, that you can't get away from the cons, anyway, any plus will cover several negative trades.

Old trading strategy for trading on the NYSE

This is the old version. One of my first trading strategies, small sketches of trade.(successful) New : NYSE Trading Strategy Main Entry Signals: Break of the previous day's high or low. The stock must break the low 1 day, better more 10 days low or high. There should be a trend on the daily chart and trade only in its direction. Drawing the bottom, in the form of a saucer, stock reversal . The promotion must pass at least 2-3$ from the opening and trading in the afternoon such signals. Centerfold, after a strong rise in the stock and an explosion in volume. Minimum 1$ should grow and begin to rest against the level.

Online Research with my group

Started doing Online Research with my group, we select stocks for trading and write our ideas on the market. While the crude version, the tables will need to be improved, but it's better than nothing. Those who wish to take a look can follow the link : Closed now :)

Time dependence of profitable trades

The chart reflects the amount of closed positive and negative trades in a certain interval. He's certainly not accurate, but you can immediately see that open positions in the first hour lead to a minus for me. Here only the closing of a deal is taken into account, regardless of what time they were opened., but based on my experience, I can say that the best time to open my positions is : 10:40 – 11:30 13:00 – 13:40 14:10 – 14:40 It is necessary to try to limit the opening of trades in other time intervals

Scalper: trading style

The team updates our trading style guides, to reflect current market conditions. Almost every experienced trader, who I've talked to, talked about the impact of high-frequency trading and black-box trading on the market. Some were unable to adapt and were forced out of business. From my point of view, Alternatives continue to exist in abundance, But people have to adapt their style, to reflect the new conditions.

Thoughts on the expected value

Let's try to apply a bit of theory, taking the average results, and see what we can achieve by observing only the Expected Value in our trading system, no super deals. Initially, we have a 10C stop in the stock, but taking into account the average slippage of 12С, we set the commission 0.006С. The profitable trade is 45С. The ratio is about 1 to 4 it turns out Position in 1000 shares with us Consider 2 Options : BUT) First 3 our trades are always minus 12C on 1000 shares this 120$ with commission 132$. Fourth deal plus 45C always. B) First 2 our trades are always minus 12C on 1000 shares this 120$ with commission 132$. Third deal plus 45C always. Suppose that on average we do 10 deals per day.

Notes on 4 august

Results of a Small Experiment : Strict adherence to the trading system The results are very impressive. Out of 2 weeks of adherence to it, there was only one minus day small. True, initially it was a minus at the beginning of the day, but this is due to the fact that I traded in the first hour. According to its results, it surpassed the best month in 2 Times, but then he broke down and could not strictly follow the rules and lost more than half of what he earned through his own fault. conclusions : Observing the Trading System, you can achieve phenomenal results, the main enemy is discipline and emotion. The main problem now is this, not in the trading method. Notes: Do not raise positions too aggressively, best to increase gradually by a third, not in 2 times more. Discipline is gone, stupid deals appeared. We must return to the old style. The market gradually calm down, the season of reports is coming to an end

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