Understanding "Buy Above & Sell Below"

[AW10]

i feel, it is worth risking 5.5 rs to make 5.5 (only if my trading strategy produce more than 60% success rate).

Biyasc, one will know the success rate of 60% from their system only when they know their system so well that they can trust it. Someone who is getting these tips will never know it.

There are people (including me) who will pass the trade if RRR is not > 1. That is because even if system has win% of 60%, probability of next trade to hit target or stop is always 50:50. It is conditional probablity (coming out from system design as win%) that could be 60%. So in my trading, whenever I take a trade, I use probability of that trade as 50% and hence I look for RRR > 1. Maybe I am conservative in taking risk in trading.

Anyway, it is matter of personal preference.

Happy Trading.

 

[kandid]

Used to be in Mutual funds but came out after developing belief that if they can loose my money then so can I..

:rofl:
:clapping::clapping::clapping:

well said AW10

 

[sudoku1]

Nava, I am sorry, but I believe that even the rules that are working for me will not work for others. There are so many systems available freely on net, given in books, discussed in TJ.. it is not difficult to find a system.
But most of the time, they don't work for majority of people but works very well for some people. Problem is not with the system but it is with the trader who has not found the system that meets his requirement / his psychology/ his account size/ his time requirement etc.

Happy Trading

EMOTIONS r also the problem where diff results for same strategies r seen....
i.e. many follow warren buffet, but cant overcome their emotions

 

[conancare]

Things to avoid in stock market as follows:
Never panic
Never make huge investments
Never chase performance
Never ignore expenses
Never panic

Regards,
Conan

 

[Gauhar]

Hi All

Can anybody please tell me, How buy above and sell below price is calculated? what is its formula???

 

[all4excel]

Quite Impressive explanation AW10..

What do you mean by System Development here? Are you into Softwares etc..

As even I'm trying to develop some system useful for myself with my limited ability in EXcel which I can use..

I am just two weeks old in the Stock Market but want to start with a Scientific Approach with the right attitude and proper planning...

 

[AW10]

What do you mean by System Development here? Are you into Softwares etc..

I meant, developing a Trading System. ie. Set of rules for Setup, Entry, Loss Exit, Profit Exit, Trailing Stoploss points to get max profit, Position size. All these rules when placed togather is called a Trading System.

Plz chk out
http://www.traderji.com/advanced-trading-strategies/29825-trading-nr7-setup.html#post323037
where I have given draft rules for 1 trading system. Maybe you will get more idea about what I was saying here.

Using software/ excel is just a mean to implement and test the system. Important is to establish the requirements/ foundation first.

Happy Trading

 

[all4excel]

Dear AW10,

I think what you meant makes a lot of sense and will be going through that very carefully.As I told you I am still very much in the nascent stage and want to learn every intricate thing under the sun to help me become a wise investor..

However, currently I am working on a small concept put forth as a question in the forum.
Just thought about sharing the link with you if you could provide some inputs on the same.

http://www.traderji.com/general-tra...ribute-amount-wisely-stocks-make-profits.html

Please suggest something...