trading system for beginner

[oilman5]

high probable trade
............................
its the directional bias...where most waiting watchers r ready to join..
market buying r coming...big volume r increasing

concept is use momentum ...act now.

another concept a trend started yesterday 3pm..hence further steam left.
scan at night for candidate.

without any news. on real time..sudden volume surge..price is also moving up.
ACT NOW ..NO TIME TO THINK make money

note: this works i saw and made some lakhs.......... work tomorrow also

 

[oilman5]

shortterm trade/ swing trade
............................................
here u must reqd eod . a software ..preferably some risk reward analysis
some low risk entry tactics and stop-umbrella to save from rain.

u have to define entry characteristic .
1. entry after break out over longterm resistance zone
2. after twice bounce in support ..price just starts moving up.
3. sector starts moving up..stock has good rel strength comparison within sector.

stop
......below 5% of last week low
if not 4% up move occurs within 5 trade days..use time stop

profit target 8-10% from entry..however after 5-6% price is NOT HOLDING
....get out with small profit...than turn profit into loss

for momentum base swing trade..refer david landry and crabel works
for system study see beyond ta..by tusher chande

oilman5

 

[instaalert]

hi oilman,
i posted only yesterday asking for a trading system for beginners.
just it popped up in front of me, when i logged in the forum today !
good beginning, oilman. if i am not asking much, can you explain every entry with some suitable datas & charts, as we can understand, what we are learning ?
with expectations in learning,
instaalert.

 

[oilman5]

by the way, i get out of GTL ..initiate new position archies, dr reddy,mrpl
target profit 142, 742 .42...yes peculiar but true within 5 day.
stop ..130, 710 .. 37..respectively...though market move in profit booking zone...[by the way i am a very poor short term trader..25-30% accuracy]

next position trading
..............................
personally i decide only some shortterm winner to be extended for long.

and today bpcl, hpcl ,visual have given position buy signal.
its basically chart ..after trend change suggested entry at predetermined pt

for me some% up with volume increase...in metastock RSC EXPLORER candidate must be in upperside.
yes i use eye ball technique and pattern failure[ in h&s when instead of fall price starts move up and w.pattern price slowly starts moving..acceptance of price]

my idea given money in past..i dont know whether shall it work now.
but i put real money
some other low risk idea r predefined omnitrader eod study[ i am poor in computer]
oilman5

 

[oilman5]

sorry instaalert,
art of makings things simple is a great art, i not yet master.

however .if u see eod chart + 7 month weekly chart u can see
reason behind . call and exit..by the way my system has subjective criteria. and i actually trade in position size higher on winner

if u see GTL..clearly u see break out..and then move with momentum

archies..ready to move now.
same in mrpl.
dr reddy...dynamic support..high risk trade but present moneyflow in pharma
i take position.
[gtl profit i use to buy 19"lcd today]

 

[oilman5]

position trade
......................
support base has to be created..have u seen strong base support of rolta@78-82 ..2 yr back...after crossing 100..it never look back.

another criteria...when nifty starts moving up again after retracement
enter good candidate[presently who r in near yearly high like ongc]

third unexpected good result published and buy volume shows high demand

 

[oilman5]

position trade contd
...............................
most imp part of position trade is stock list...here u know from back ground move shall continue..further..as u try for bigger profit ,failure rate is high.
hence u must have inbuild mmsystem to get out with small loss and addon winner....mark boucher course is very helpful.

say being in known field i must track some news on company..
also result out of infy ..how + affect midcap computer company..

as position trade is a judgement game..hit of the moment decision should NEVER be taken..infact temporary fall is a great buy oppurtunity

strength indicator on 2week chart basis [ ie converting data on 10day high-low-close basis available in metastock] is good way to see

 

[oilman5]

in rangebound market...willium%r at oversold zone good indicator
in trend market , i use aroon .
after long fall, weekly chart engulfing bull i use for entry+ bill williums chaos entry signal
.......for stop simple sar as available in metastock...apart form subjective pattern stop and time stop.
profit booking ...50% quick booking
if however quickly price moving up .instead of sell i buy double as its low risk trade[ in the language of traderji confirmation by price]

 

[oilman5]

-momentum short plan
.............................
this condition to be created by media..rumor of market shall goup ..vs pro have already sold..now some -divergence can be seen ...price slowly starts falling..now tv must speak again and again ..threat percept...more sell order coming in nifty future...NOW ONLY THE TIME for short...hence its a short term quick execution ..a bull market top trade ..with propaganda from media
otherwise harsh bad news....when most participant prefer to sit on cash[bulls r running away]

with hold ing stock its a conflicting trade..better sell holding first.

 

[oilman5]

those who prefers can suitably put in programme can check, backtest and then real money in day trade..and in short term trade..

for position trade , subjectivty condition is there..simple triple ma. x can also be used...
however stop and checking of nifty must...its better to see advance-decline curve as in www.icharts.in