GoodTrader1

I have shared in this great forum the last post I've written in my blog because I think it is important that traders realize the overbought level existing in the stock market. To my knowledge this is not spam. Greetings.

A good way to determine the levels of oversold or overbought of the stock market is by using the indicator that measures the percentage of stocks that are above their 50-day moving average. It is a breadth indicator that you can find under the symbol $NAA50R in StockCharts.com This indicator is currently in overbought zone, which makes me think that the odds are in favor of a pullback in the markets. Markets are always oscillating between the two extremes. The stock market can remain in overbought condition for some time but now is the time to start to take precautions and stop thinking that the market can continue to rise indefinitely. In the end the price is what matters, but you must be prepared for a bearish environment at least until this indicator falls under 20. Happy Trading!

Create a watchlist of stocks or ETFs during the weekend, define your entry setup, your stop loss and your exit setup. Find a period of 30 minutes during the day you can monitor the market and make your trades. This solution is valid for swing trading, where your trades last for days to weeks. Happy Trading!

I think that 2000 € is very little to start unless you want to play all or nothing. People do not like to be told this, but it is my opinion based on experience : - Do not use leverage until you have 4 times the value of your account. - Only 1% risk of your capital on each trade. - Take into account fees and costs of your trades. This is not a game, you can lose your money very easily. The best path is not always that seems faster.

Your post made ​​me think, and this is what I'm here to find interesting posts that make work my neurons. Thanks for posting.

I am very strict with my hard stops. We must leave some room for price movement, but the bare minimum. The market is full of possibilities, no matter if the stop is triggered, the important thing is to be in tune with the market and trading opportunities appear for themselves.

I do not like the idea of switching to simulation when it reaches a certain level of losses. The best trade will always occur when the system is in simulation mode! The best solution I've found is to link directly the size of the positions and the maximum level of risk assumed by each trade to a certain percentage of capital available in the account.