My Trading Approach

My name is Ankana. I am new to trading. I am studying technical analysis since May this year. I think I should ask my friends here about one system that I want to trade with. I want to follow the technical part of Dow Theory for my trading i.e, I will buy a share when any share which is down, makes a higher low and then a higher high. I will put a stop loss at the higher low which will be 0.75% of my trading capital and I will buy maximum of 7 scrips at a time. I mean I will have maximum 7 scrips in my portfolio. I will sell the shares at 20% profit or stop loss trigger.

Now my question here is, will this be a profitable idea?? Please Help Me!!!!!!!!

One of the most important factor is you have to understand market trend. This you can develop by keeping regular eye on markets and try to link the market happenings and by reading lots of news related to stock market.

Before investing do a proper research about the company. You can find detail research about the company in Dalal Street Investment Journal. Very informative









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Antana.... let me congratulate you on the fact that you have nailed the most important point. Risk Management. On which, my comment is that, 0.75% * 7 that is 5.25%; So, at given time you will have 5.25% at risk.... be sure to maintain this pledge. In good times and bad... if you could reduce the risk to say half, since you are just starting off, you will be much benefited.

For the rest of the technical analysis, you do not need to learn more to make money.... just be sure to be consistent with it. If you include or exclude a rule, be sure to play it out for atleast a month before you make changes. This is for the sake of consistency.

In summary... godly risk management and godly consistency... you be with god and then he will be with you....

Good bye and good luck...