Trading Techniques   

Help advice !

Thanks singaporegal and manikamaniko.

I'll make the book my next reading buddy. Been fiddling with charts these two from SJ. really accurate in predicting trends and price changes. takes away lots of uncertainty when I decide to buy/sell.

 

 

Dear Members,

Just a thought .... seems like this basic questions keep cropping up frequently.


With information such Line bar, Acc/Dist, Macd, Performance, Stoch , Vol and last 2 years P&L

results helped investor to buy stocks?

Thanks for your comments!

 

 

 

 

Hi maxliukt,

No problem....  but do try out any techniques you learn about on paper money first before you play with real money.
 

 

But how does one determine that 70% of one's trades result in a profit?
Is it from one's trading records?  If yes, can  this be satisfactorily verified?
Anyway, no verification is necessary in this area, since much disagreement can result from the contentions.

My point is that if one has a 50/50 (or even lower, say, two in ten ) chance in one's winning stock picks, one can still profit much in spite of the eight losing trades. The  difference lies in the money management.

 

Thanks to all SJ members for the replies.

also special thanks to Singaporegal :)

 

Admin,

mmmm on second thoughts  ... maybe it is not a good idea ... leaving it alone maybe good way for forummers to interact with each other ..  maybe create more goodwill among froummers ... and more livelier place ....(scratching the head !)  : )

wonder what other forummers think ?

 

Admin ,

Just a thought .... seems like this basic questions keep cropping up frequently.

Perhaps u could compile a  FAQ for new members of SJ and stick it somewhere ?

I know this is a free site with many wonderful features ...and can feel ur resources must be stretched ... but then it is just a thought ... : )

 

haha,   mani, 50% sound too low leh. my hope was 70%.

see, if there is a lost on just 3 out of 10 counters , the total can be big lost.

 

I would be happy if my trades, based on my TA, are correct half the time ...
ie. if the result is a 50/50 chance being correct.

This is my personal standard (not 70%)...

 

Her bible is the book:-

"Long-term Secrets to Short-Term Trading"
- By Larry Williams.

 
Click the above link to go to the Amazon link for that book. 

 

As more and more books on TA come on the market, the choices are wide.. .

Simply goog "technical analysis" and it will yield much information...

But it is well to remember that "TA" is nothing but a must-have toolkit for any trader
...just like a beginning guitar player will need a guitar to make some sound resembling the instrument.

In the hands of an inept person, much  money can be lost while using TA...

 

maxliukt, you may read singaporegal's recommendation of the book, I just cut her article here for your reference on the Book she recommended

Long Term Secrets to Short Term Trading by Larry Williams

By the way you can read her article in this forum under research ( orange panel in the left hand side) 

http://www.sharejunction.com/Articles/singaporegal.htm 

 below is just a cut and paste of her article.for quick reading...

Article Dated - 25 November 2006

Why use Technical Analysis?



I decided to do something about it and I picked up a book - Long Term Secrets to Short Term Trading by Larry Williams. That book really changed my trading philosophy and techniques and I still refer to the guiding principles of Larry Williams today. It was the best book I ever bought! I have now been practicing TA for the past 4 years. Statistically, 70% of my trades were profitable ones that average a profit of between 5% to 15% per trade. I buy and sell a counter within 30 trading days. For my losing trades, I will usually cut loss when the price drops below 3-5% of the price I bought.

 

 

Thanks baseerahmed for the info.

 anyone can recommend a good book on TA. Or where to take a course on TA?

Thanks a million.




 

 

maxliukt :

TA is short for Technical Analysis . MACD is one of the many indicators and oscillators.

If TA is a book , then MACD is a chapter in TA

try www.investorpedia.com to get an intro to ur TA and other queries or get a book from the library on TA

hope this helps .

 

Can anyone advice: is TA more accurate than MACD? thanks

 

just to clarify, i set a higher bid  first before i set the 2nd lower bid..when i tot that it won't rise to my 2nd selling pt.. but it did just within a very short time frame..

thanks for the advice bros ! phew .. manage to buyback cover my position before closing and add another extra 10lots to it.

 

What is the point of keying 2 sell points with slight difference in price ?

Logically, the system will naturely take the lowest price first, right ?

 

hi,  i have previously done that before - like 5+ yrs ago. And yes, u need to buy back to cover the 2nd selling pt.

q1) not too sure which is ur securities firm, the last time i did mine, called them and told them it is an honest mistake - and they didnt fine me.  Just hv to ensure u buy back the 40 lots.

q2) yes.

i think sometimes the market moves so fast that u shld try to avoid hving the 2 sell pts too close to one another.  unless ur securities firm or u can get a software which will automatically cancel the 2nd order, once the 1st order is successful. 

just my 2 cents worth.

 

 

 

 

I bot some 40lots shares at $xx price, than i set 2 sell pts 40lots  at xx.5 and 40lots at xx.55 respectively but i forget to withdrawn my 2nd bid.

Because if 1st TP is hit, i will withdrawn my 2nd sell bid.

But within like 30 seconds, both sell lot got cleared. which mean i actually buy 40 lots but sell 80 lots at 2 different prices.. do i need to buy back 40lots to cover the 2nd selling pt ?

Q1. if not i will be subjected to short-selling and fine ??

Q2. than let's say manage to buyback the 40lots at the same price, means my losses is only commision right

thanks !