money management

Risk management

Layers of risk management
A typical systematic trading approach might include some or all of the following tools for managing risk.
Portfolio level:
Portfolio, system, and time frame diversification
Trading different markets.
Trading different systems.
Trading on different time frames.
Halting trading if and when account equity experiences an x-percent drawdown.

System level:
Allocating a fixed percentage of equity for each position to equalize per-trade risk.
Capping the number of positions/risk for different sectors and/or all markets.
Risk balancing among portfolio components (ensuring each trade represents the same risk to the portfolio.

Trade level:
Predefined stop-loss and profit-target levels.

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.

Fundamental rules

After reading some blogs, I decided to remind my basic rules again( somewhere in the blog already quoted), then , what has been observed by me for a long time. You know a lot, but nevertheless I wrote this " under my own sauce '', because 'suffered" :))
These rules will help you " to stay afloat" long time, subject to correct positioning.
Market success is not about quick and big " win '', and in the systematic accumulation of profits with minimal risks.
I watch often, that many beginners or those, ko thinks that, after selling for a couple of years , he has the right to give advice to the left and to the right, uses terminology, not understanding the essence.
For example, is it possible to download the entire deposit!? And no one will even mind, that it depends on the characteristics of the financial instrument. It is necessary not only to look at the shoulder, but also on the maximum deviations of a particular instrument in a period of time( laying extreme value). You can buy liquid shares of many American companies for the entire deposit, which do not change in a month 5%.
AND ,you are welcome, don't listen to those, who knows how to teach and criticize, without showing your results. Reminds me of a thief, screaming " stop thief '.
And there are also such, who points a finger at….They are cynics. CYNIC- it's not just that, who teaches on the bitter lessons of the past; it is he who prematurely disappoints in the upcoming.
And than ,a priori ,they , who usually criticizes and lectures, in fact they can not do anything.

1. Be emotionally ready to trade, no greed and fear( emotional preparation)

2. A trading plan must be prepared in advance( analytical training)
3. Correct positioning – recipe for success, don't try to catch the bottom and top( Trend is your friend)

4. Eliminate Bad Trades Immediately , keep the winning, don't bring a winning trade to a loss( Wealth Management)

5. Don't load all the money at once, add to winning trades, don't average losing trades. Enter and exit the market gradually, don't be greedy.

«Bulls and bears make money, and the pigs are losing»

6. Always evaluate the risk-reward ratio, be patient, «trade must come to you, you don't need to chase him».

7. Be emotionally balanced with losses, they are part of the business.

8. .If the position is in doubt, do not guess and do not suffer , but liquidate the position.

9. Avoid making the same mistakes and constantly improve your technique, but don't over complicate.

10. Don't Think, that you are smarter than the market. The market is always right. Trade what you see, and not that, what do you think!

10and. Be disciplined and strictly follow the rules, be sure ( but not presumptuous)in my own power and the result will come.

On a note

Notes of topics, who is SHORT American market.
You need to calculate your pain threshold in this way, to stop 1095+ was not a big damage to your account.

Trading Strategy (Draft, will always append)

Major signals at the input: Puncture hai or low the previous day. The action must penetrate at least 1 day, more than 10 days of low or high. Must be a trend on the daily chart and trade only in his direction. The figure of the bottom, in the form of the saucer, turn the action. The action must take at least $ 2.3 with the opening of trading with, and after dinner such signals. Reversal, after a strong rise of the action and the explosion of volume. Minimum 1 $ must grow, and begins to level jib. Money management If 3 days in minus 4 day do not trade. If the transaction minus 3.4, rest for some time (min. 30 minutes) More than 5 deals with the results, resting for some time (min. 30 minutes) Delu limit losses intradeevsky: 60% of the limit can lose up to 12:00 40% of the limit can lose after 14:00 AT OPG can lose depending on the size of the position, for every 1000 shares ~ 7C losses.

Trading strategy for trading on the NYSE, NASDAQ, AMEX

A trading strategy is a plan of action, which a trader uses to make a profit in the financial markets. In this section, we will discuss the key aspects of the trading strategy on such exchanges, how the NYSE (New York Stock Exchange), NASDAQ (National Association of Securities Dealers Automated Quotations) and AMEX (American Stock Exchange). In the process of editing 21.10.2010 The essence of my trading strategy is simple, it is trading on the continuation of the trend or reversal of the stock within the day after a significant rise or fall. The main signals for the continuation of the trend: On the daily chart, the stock must rise or pass a key level. Most often, I trade stocks that are on an annual high or have passed some significant level for 100 days. I watch the levels on the day and 15 minute scale, there should be a clear trend

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