trading system for beginner

since i complete ..journey of a trader...i start this new thread..
it is written in ta topic as here lies some similarity.

my background : amateur trader
profession : project manager
drawback : computer illiterate, non commerce back ground
+pt : understand pattern ..quick decision making with odd
successfully played many a tournament in chess & bridge
: post graduate in OR


for whom it is : amateur trading > 4yr experience
pro > 1 yr
rm > 2 yr

oilman5

hey oilman:

u have a good chance of success, because u accept that u dont know much

Most people think its easy money to be made and loose.

at least u are looking for a system

best of luck

so the topic starts
..........................
since after experiment , boys and men r apart..we can move further.
to see where we stand as a trader ..can we improve our trading ?
min 50 trading have been taken ..min 20 correct trade .

so the persons can understand trading is a search for oppurtunity.
losing trade may appear any time.
understand hot topic black swan.
concept of hunter and the hunted.

the basic of reward/ risk...when situation is out of hand
when trading is within comfort level.

hopefully have seen one 1bull-bear cycle..or as a pro 100% retracement and comeback.

philosophy of trade : market is war arena..ruthless fighter can only survive

: trading offers great no of oppurtunity to pick.A position
may be oppurtunity or a trouble[loss]...nobody knows
while picking,what it shall be.TIME will unfold..whether
it is profit making one or take money out of you.

corollary :do i know how to trade?if yes, how to do effectively
[trading performance]
specific method to be followed again and again[system]
system vs. individual psychology ----- TUNING

element : experience
market research and put data for validity
testing [ ofcourse u must have ability to test]
position management

if no system : poor trade result occurs with emotional trading.
when personal psychology not match with particular style
loss of oppurtunity[ missing oppurtunity due to fear]
wrong expectation

hence a system of timing must have 1. set up condition
2. entry
3. exit...profit target
4. risk analysis
5. exit ..contingency plan

1st principle
..................ABC
A ACTIVATION ...TRADE ENTRY
B BELIEF .. if trade continue as wishes ok.
C CONSEQUENCE , If price turn opposite get out

Hi Oilman

Sharing a few thoughts …

Have followed your thread ”Journey…”. Actually a very nice thread. Unfortunately the narrative is broken and lacked flow.. With a better narrative that thread would have a real hit... what it really deserves.

I do really hope here it will be taken care of and I am looking forward to some nice stuff.

And please note this is without any malice ..just sincere opinion.

Warm regards

Karthik

2nd principle
....................SMART

S SPECIFIC GOAL
M MEASURABLE GOAL
A ATTAINABLE
R REALISTIC
T TIME TO REACH DEADLINE

SYSTEM :
..............
MECHANICAL TRADE SYSTEM MTS

DISCREATIONARY TRADE SYSTEM DTS

HYBRID SYSTEM...HTS

DIFFERENT CONDITION OF MARKET
..................................................
1. RANGE BOUND MARKET PLAY PLAN
2. TREND MARKET PLAY PLAN
3. MOMENTUM BASED BREAK OUT PLAY PLAN
4. -MOMENTUM / AT TOP QUICK SHORT PLAN

thanks ,karthik.
infact i am inspired by ur technical depth. u have done alot research on macd and short term position trading. in fact i tested once ur system ...
it has very good + expectency.

normally ...stands for pause[ u have to think now..as u know small loop checking]....so if u read that way link shall come autometically.
some r copy paste..others r my thought process on trading...
with regards
oilman5

system design
.....................
beginners bias : buy only ..one directional trade

condition : if nifty showing +bias..buy xyz stock
say today gtl ...@ 172...its moving further ++target175.
go back last week chart..it has given sufficient hints to move today / tomorrow...1130 move starts[ hope intraday players see it]

thursday and friday price hold ...fulfil my condition of trade

as a day trader 170 stop...target 175 achieved..

as a short term trader 165 stop...with 182..target...
so u understand why i a poor short term trader...before reaching of target more often than not it reaches my stop..so the loss in a/c

condition of short term entry is different than my momentum style..
so the confusion ...thats why i loss..as naturally i trade right in day

fact is in short term with proper risk/reward no trade exist in gtl..
time extension linearly does not quantify a trade. it is a trap..hope factor
so for short term reversal at bottom or at 50% fibonacci level better alternative.[ already topic become difficult]

system design
....................
day trading , short term , position trade and investment..4 r different scenario . condition for success in each ..has some peculiarity.

value investment [ works if u fit there.not suitable in present market]
...buy good stock with av p/e+ when price starts rising in weekly chart.

but for trading another concept..which shall give more score..consistent single
/2run by bangladesh against india..or wait and hit 4/6 run by bangladesh against south africa[ both match won by this novices..against superior pro]

u have to choose...1run day trade
2 run swing trade
4 run position trade
6 run multi bagger..nomore exists

[ if u r master trader,not a beginner like me,...try some portion of day winner to HOLD..SCORE 2RUN............another greedy[balanced greed ] view...BOOK 50% PROFIT IN SWING TRADE..LET OTHER 50% TO RUN FOR FURTHER PROFIT

day trading system
..........................
to quote cv ' master ur craft.practice and practice...ignore all others'
understand simplicity and toughness...in it.u have to understand how price reflect everything..suitable indicator..derivative from price ..to study and maintain strength...and eye for order flow....
thats all...alas! one is sufficiently difficult...3 is awesome in real time.
thats why salute to cv!
u must have some method to understand price increament shall continue
and then another when price dilution coming.
[objectively a programmer can do,i am ignorant]3min/10min ma x...also 15min rsi has some use...big order coming in sell side has its impact.

whatever it may be , real time execution is key.alert helps